GM to pay $220 million after selling customer Smart Driver data
Owners of GM cars found their driving data had been sold to insurance companies.
Owners of GM cars found their driving data had been sold to insurance companies.
The short version
- General Motors marketed its Smart Driver system as a way for parents to monitor teen drivers or for adults to track their driving behavior.
- But in 2024, it emerged that GM had been sharing that data with brokers.
- Those brokers then sold the data to insurance companies , and some drivers found that their insurance became more expensive as a result.
What happened
To make matters worse, many of those drivers claimed they had no knowledge of ever agreeing to share such data for such purposes. Last year , GM and its OnStar subsidiary entered into a settlement with the FTC, prohibiting them from sharing some kinds of driver data with third parties.
Why it matters
The settlement was finalized this January.
Summary by Nerd News Network. Read the full article at Ars Technica via the links above and below.