GM to Pay $220 Million to Settle Multi-State Data Privacy Lawsuit

General Motors will pay US$220 million to settle a multi-state lawsuit alleging it sold drivers' personal driving data to insurers without their knowledge or consent, New York Attorney General Letitia James announced on October 30. The settlement resolves a suit brought by New York and 35 other states.

What the Smart Driver program did

The lawsuit centres on GM's Smart Driver program, which tracked actions such as sudden braking, speeding, and other driving habits. According to the Attorney General's press release, GM shared the data of enrolled drivers with third-party "data bankers," who then sold it to insurance companies. In some cases, insurers used that data to raise premiums by significant levels.

"General Motors collected data on their customers' personal driving habits without their knowledge and then sold it, potentially affecting their insurance rates. Today, we are putting a stop to this illegal violation of drivers' privacy," James said.

Timeline of the program

• April 2024: GM announced it was discontinuing the Smart Driver program, citing consumer feedback as the reason. It also appointed a new Chief Trust and Privacy Officer.
• January 2025: GM reached a separate settlement with the US Federal Trade Commission over allegations it improperly collected and sold consumer data usable for insurance pricing.
• October 2026: In a securities filing, GM disclosed it had set aside US$500 million in reserves for investigations and litigation related to the program.

What the settlement means for connected-car privacy

The $220 million payment resolves the multi-state suit but does not address individual consumer claims. The case is part of a broader pattern of regulatory scrutiny on automakers' use of connected-car data. For Canadian drivers, the issue is relevant: GM's OnStar connected-car services operate across Canada, and the same data-collection practices that drew fire in the US apply to Canadian-market vehicles. Whether Canadian provinces will pursue similar action remains to be seen.

Looking for EV deals, insurance, or financing? Check out our partner deals and offers.

If you found this guide helpful, use our Tesla referral link for free Supercharging credits on a new Tesla purchase or lease in Canada.