GM to pay $220 million to resolve claims over driving data

General Motors has agreed to pay $220 million to settle claims that it illegally sold drivers’ location and driving information to data brokers, according to The Verge, which cited Reuters’ earlier report. The agreement resolves a complaint brought by a coalition of 36 US attorneys general.

Under the settlement, GM must limit the driving data it collects and obtain “express consent” from drivers before collecting their information. The allegations concern the company’s now-discontinued Smart Driver program, which collected information about driving habits, including acceleration, braking and trip length.

The states alleged that GM passed the information to data brokers, allowing insurance companies to buy it and raise premiums. They also accused the carmaker of not telling drivers they were enrolled in Smart Driver or that their data was being collected. These are allegations described in the report.

The agreement follows a separate settlement in California, where GM agreed to pay $12.75 million over similar claims. Oregon Attorney General Dan Rayfield and Washington Attorney General Nick Brown co-led the states’ case. The coalition also included New York, Florida, Michigan, Nevada and Pennsylvania, among others.

Rayfield said in a press release that drivers bought a car, not a tracking device, and alleged that GM sold data despite promising not to share it with insurers without permission. He said some drivers faced higher premiums.