General Motors to pay $220 million after driver data privacy lawsuit
The company was accused of illegally selling drivers' information to data brokers that worked with insurance companies.
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General Motors will pay $220 million to settle a lawsuit alleging the automaker mishandled driver information collected through its Smart Driver program.
The company was accused of illegally selling drivers' information to data brokers that worked with insurance companies.
The Smart Driver program was promoted as a way to improve safety by allowing motorists to monitor their driving habits. It recorded information like acceleration rates, speeding instances and when a vehicle was driven.
Connecticut Attorney General William Tong led a coalition of attorneys general from 35 states and the District of Columbia, including New York and New Jersey, in suing the automaker over its handling of driver data.
“GM turned private vehicles into mobile insurance surveillance machines without consumer consent or awareness,” Tong said. “This was an egregious violation of privacy, and this investigation was one of Connecticut’s very first actions under the Connecticut Data Privacy Act.”
The settlement requires General Motors to receive affirmative, express consent from drivers collecting or disclosing data related to driving behavior and locations.
Connecticut and New York are expected to receive around $6 million and $12 million, respectively.
