May 11, 2026 General Motors has reached a privacy-related settlement with California regulators over allegations that it collected and sold detailed driver data through its OnStar-connected vehicle services. California Attorney General Rob Bonta said the company sold geolocation, contact and driving behaviour data from hundreds of thousands of drivers to data brokers without their knowledge or consent.
The case stems from reporting published in 2024 by The New York Times that found automakers, including GM, were sharing customer driving data with insurance companies. Some drivers said they later discovered their insurance rates had increased after insurers gained access to records tied to speeding, braking and other driving habits.
According to Bonta’s office, the data was collected through GM’s OnStar and sold to data brokers Verisk Analytics and LexisNexis Risk Solutions. Regulators alleged the information included names, contact details, precise geolocation data and behavioural driving information tied to California consumers.
California officials said GM generated roughly $20 million through those data sales.
The attorney general’s office noted that the data did not appear to directly increase insurance premiums in California because state law prevents insurers from using driving behaviour data to set rates. Still, regulators argued the practice violated consumer privacy protections and contradicted public assurances GM had given drivers about how their information would be used.
“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,” Bonta said in a statement.
Under the settlement, GM will pay $12.75 million in civil penalties and stop selling driver data to consumer reporting agencies for five years. The company must also delete any retained driver data within 180 days unless customers explicitly consent to continued storage. Regulators said GM must also request that LexisNexis and Verisk delete the data they received.
The agreement builds on earlier action taken by the Federal Trade Commission, which had already reached a separate settlement with GM over similar data-sharing practices. That order prohibited GM and OnStar from selling certain customer information to consumer reporting agencies.
GM said the settlement relates to its discontinued Smart Driver product, which the company shut down in 2024.
In a statement, GM said the agreement “addresses Smart Driver, a product we discontinued in 2024, and reinforces steps we’ve taken to strengthen our privacy practices.” The company also said it remains “committed to being clear and transparent with our customers about our practices and the choices and control they have over their information.”
