---
title: "Shady Selling of Driver Data Just Cost GM Another $12.75 Million"
date: "2026-05-11"
modified: "2026-05-11"
authors:
  - name: "Andrew P. Collins"
    job_title: "Executive Editor"
    link: "https://www.thedrive.com/authors/andrew-p-collins"
url: "https://www.thedrive.com/news/shady-selling-of-driver-data-just-cost-gm-another-12-75-million"
categories:
  - "Car Tech"
  - "GM News"
  - "News"
  - "News by Brand"
---

# Shady Selling of Driver Data Just Cost GM Another $12.75 Million

![GM privacy problems.](<https://www.thedrive.com/wp-content/uploads/2026/05/GM-privacy-issues.jpg>)
*\<em\>GM, edited by the author\</em\>*

[General Motors](<https://www.thedrive.com/category/gm-news>) is still getting its butt kicked by the [2024 *New York Times* exposé](<https://www.nytimes.com/2024/04/23/technology/general-motors-spying-driver-data-consent.html>) that called out the company for sneakily selling driver data. In January, an FTC ruling banned the automaker from selling location data at all for the next five years. The latest shockwave ripple: the California Attorney General just secured a $12.75 million settlement over GM's "illegal sale of hundreds of thousands of Californians’ location and driving data."

This GM data saga has been going on for two, or about 11, years, depending on how you look at it. GM started collecting driving data, things like speed, braking, and locations, through OnStar in 2015, but reproductions have only started rolling in over the last 24 months. This nugget from [Consumer Rights Wiki](<https://consumerrights.wiki/w/General_Motors_data_collection_and_sharing_controversy#:~:text=General%20Motors%20(GM)%20has%20been,and%20real%2Dtime%20location%20information.>) contextualizes the situation quite succinctly:

"GM has shared driving data from over 14 million vehicles (including 1.8 million in Texas alone) with commercial data brokers like [LexisNexis](<https://risk.lexisnexis.com/about-us/press-room/press-release/20190821-gm-partnership#:~:text=ATLANTA%20%E2%80%94%20LexisNexis%C2%AE%20Risk%20Solutions,connected%20car%20data%20with%20insurers.>) and Verisk, who analyze it to create 'driving scores' that are sold to insurance companies. These scores have reportedly led to increased insurance premiums and coverage denials for consumers who were unaware their data were being collected and sold."

That wiki also highlights an eyebrow-raising detail: GM reportedly shared customer location data with law enforcement via simple subpoenas rather than requiring warrants—a direct contradiction of the company’s public privacy promises.

General Motors issued the following statement on the matter:

“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.”

After the aforementioned *Times* article exposed how a Chevy Bolt driver's telematics was being secretly used to hike their insurance rates, GM [discontinued its Smart Driver data-sharing program](<https://www.edmunds.com/car-news/gm-killed-program-that-sold-driving-data-to-insurance-companies.html#:~:text=The%20increase%20is%20the%20result,Driver%2C%20GM's%20driving%20insights%20app.>). Since then, GM has had to [settle with the FTC](<https://www.ftc.gov/news-events/news/press-releases/2026/01/ftc-finalizes-order-settling-allegations-gm-onstar-collected-sold-geolocation-data-without-consumers>), now the [California AG](<https://oag.ca.gov/news/press-releases/when-it-comes-data-privacy-consumers-must-be-driver%E2%80%99s-seat-attorney-general>), and probably soon the [Texas Attorney General](<https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-general-motors-unlawfully-collecting-drivers-private-data-and>), too (which also has a pending case around this issue).

GM [reportedly](<https://technologylaw.fkks.com/post/102ms85/takeaways-from-californias-record-12-75-million-gm-privacy-settlement#:~:text=According%20to%20the%20complaint%2C%20from,making%20approximately%20%2420%20million%20nationwide.>) made around $20 million selling data mined through OnStar, and it seems to stand to lose a lot more in penalties. This month's California settlement is a new record haul for the Golden State—it's the largest settlement brought in over the California Consumer Privacy Act (CCPA) to date.

The way this particular saga is playing out feels like a glimmer of hope for consumer rights, as customer surveillance and data-selling seem to have quickly become a normal part of society (which sucks). You can count on automakers, insurance companies, and other adjacent corporations continuing to look for recurring revenue opportunities, so make sure you read the terms and conditions of your new vehicle's convenience features.

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## Author
As Executive Editor, Andrew touches everything on the site from daily news coverage to feature stories, sponsored content, product reviews, road testing vehicles, ecommerce, and more. He's held pretty much every role there is to have at an automotive news site and has been with The Drive's publisher Recurrent since 2020. Andrew's a lifetime gearhead and longtime writer with a particularly strong penchant for road trips, off-road adventures, and archaic vehicles. His passions outside of the automotive world include skiing, obsolete video games, and his dog Bramble who occationally helps review cars.

### Author social links  
[Instagram](<https://instagram.com/andrewatlarge>)  
[LinkedIn](<https://www.linkedin.com/in/andrewpetercollins/>)