Pennsylvania to Receive $8.67 Million in GM Data-Sharing Settlement - Insurance News | InsuranceNewsNet

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Pennsylvania to Receive $8.67 Million in GM Data-Sharing Settlement

Free Press PublisherFranklin County Free Press

Pennsylvania is expected to receive $8.67 million under a $220 million settlement with General Motors resolving allegations that the automaker sold drivers' personal driving and location data without their consent.

Attorney General Dave Sunday joined a coalition of 36 attorneys general in the settlement. The coalition alleged that GM sold the information to data brokers, which then sold it to insurance companies for use in setting rates.

From 2016 to 2024, GM enrolled millions of drivers in its Smart Driver program, which tracked driving habits. According to the coalition, GM promoted the program as a way to improve driving safety and told consumers their information would not be shared with insurers without express consent.

The coalition found that GM sold the information under contracts specifying its use for insurance products without disclosing that purpose to drivers. The data included trip frequency, start and end times, hard braking, rapid acceleration and speeding. Insurers used the information to adjust rates, sometimes increasing premiums.

GM discontinued Smart Driver after The New York Times reported on the practices.

The settlement requires GM to obtain affirmative express consent before collecting or disclosing consumers' driving and location data. It also requires the company to limit the driving data it collects and establish a comprehensive program to protect personal information.

Additional requirements include internal and external privacy assessments, dealership oversight and training intended to prevent consumers from being enrolled in data collection programs without their consent.

Washington and Oregon co-led the case.

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