GM to Pay $12.75M for Selling Driver Data Without Consent

General Motors will pay $12.75 million in civil penalties to the State of California for selling driver data. Despite several other open lawsuits, California is the first to settle with General Motors after the company took driver data and sold it to brokers LexisNexis and Verisk. A New York Times investigation found insurance companies, which received the data from the two brokers, could use the data to determine driver insurance rates.

Automakers have access to a wealth of customer data, from how hard you drive your car to your taste in music, using the data to target ads towards owners and to determine what their driving habits are. The settlement, which requires court approval, mirrors a federal ruling that bars General Motors from selling driver data to "any consumer reporting agencies for five years." GM must also delete any information it has collected and request that both LexisNexis and Verisk do the same.

In a statement, General Motors downplayed the data it collected, instead implying how the court's decision "reinforces" steps that the company somehow would have taken even if it hadn't been caught and sued: "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."

SmartDriver was discontinued shortly after the Times' investigation was published, and further reporting led to even more traction in national media. Unfortunately, the court ruled that while GM did sell data and profit from it, drivers weren't affected. This is despite California AG Bonta's comments on the lawsuit: "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," he said. "This trove of information included precise and personal location data that could identify the everyday habits and movements of Californians." GM is also being sued by Texas, Nebraska, Indiana, and Arkansas, while a 2025 FTC ban saw GM barred from selling driving data for five years. Now, the automaker must obtain owner consent for data collection.

This story was originally published by Men's Journal on May 11, 2026, where it first appeared in the News section. Add Men's Journal as a Preferred Source by clicking here.

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This story was originally published May 11, 2026 at 2:25 PM.