General Fined For Selling User Data: $12.75 Million

General Motors will pay California $12.75 million in civil penalties for selling driver data. The state is the first in the Union to settle with the Detroit-based automaker after the company was caught selling owners’ locations and driving behavior to third-party data brokers.  

The settlement, which still requires court approval, also prohibits the automaker from selling driving data to “any consumer reporting agencies for five years.” GM must delete the information and request that LexisNexis Risk Solutions and Verisk Analytics do the same, the two data brokers to which it had sold data.

A GM spokesperson, in a statement about the settlement, told Motor1:

‘This agreement addresses Smart Driver, a product we discontinued in 2024, and reinforces steps we’ve taken to strengthen our privacy practices. Vehicle connectivity is central to a modern and safe driving experience, which is why we’re committed to being clear and transparent with our customers about our practices and the choices and control they have over their information.’

California opened an investigation into the automaker after The New York Times reported that GM, along with other automakers, was sharing consumers’ driving behavior with insurance companies, leading to higher rates for some. The state wanted to determine whether any data was used to increase residents’ premiums.  

According to the California Privacy Protection Agency, the investigation revealed that “GM sold the names, contact information, geolocation data, and driving behavior data of hundreds of thousands of Californians.” The automaker allegedly made just $20 million nationwide from data sales to LexisNexis and Verisk, which it collected through OnStar.  

While GM did sell Californians’ data, the state determined that its drivers were not affected. The state has a law that prohibits insurance companies from using driving data to set rates. California Attorney General Rob Bonta said:  

“General Motors sold the data of California drivers without their knowledge or consent and despite numerous statements reassuring drivers that it would not do so. This trove of information included precise and personal location data that could identify the everyday habits and movements of Californians.”  

Other GM Data Investigations  

Since the Times’ story broke in 2024, several states have opened investigations into General Motors. Shortly after the report, Texas sued the automaker for selling residents’ data.  

Texas Attorney General Ken Paxton called the unauthorized collection of driver data “invasive” and “disturbing.” Nebraska, Indiana, and Arkansas have also joined in investigating the automaker’s privacy policies.  

In early 2025, the US Federal Trade Commission announced it had banned GM from selling sensitive driving data for five years. The agreement with the federal government required GM to “obtain affirmative customer consent to collect, use, or disclose certain types of connected vehicle data.”  

Motor1’s Take: It’s a small fine for the automaker to pay, but it doesn’t appear that it profited much anyway from selling your data. It’s not the first time we have heard that automakers are not making billions off your information, which makes us wonder why they are even bothering to do it in the first place when so many people just don’t like it.