Virginia to receive $6.5M from General Motors settlement

Virginia is set to receive $6.5 million in a proposed settlement over allegations that General Motors sold drivers' personal data without their knowledge to brokers who resold it to insurance companies, which sometimes used it to set or raise insurance premiums.

Attorney General Jay Jones joined a group of 36 attorneys general in the case against General Motors, altogether securing $220 million to settle the allegations.

"I am proud that this agreement marks Virginia's first publicly announced settlement under the Virginia Consumer Data Protection Act. When a company breaks Virginians' trust and abuses the data privacy laws on the books, this office will hold them accountable," Jones in a statement. "This information was identifiable and used against drivers. The injunctive relief this settlement brings will be a step in the right direction, making sure that something like this doesn't happen to Virginians' data again."

Between 2016 and 2024, General Motors signed up millions of drivers in a program that tracked their driving habits. Customers were told their data wouldn't be shared with insurers without their consent, but the company sold it to data brokers who resold it to insurance companies. The insurance companies were then able to change drivers' premiums based on their driving habits. Drivers had no idea this was happening.

Most drivers who signed up for the program did it at General Motors dealerships when they bought their cars, and in many cases, dealership employees accepted the terms and conditions on behalf of customers without their consent.

The settlement terms require the company to get express consent from consumers before collecting or sharing their driving and location data.

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