GM Settles California Driver Data Privacy Case for $12.75 Million

General Motors agreed Friday to pay $12.75 million in civil penalties to resolve a California state privacy case, Benzinga reported. The settlement covers allegations that the automaker sold sensitive OnStar driving data to third-party brokers without obtaining proper customer consent.

What the GM Settlement Requires

California Attorney General Rob Bonta announced the agreement, saying GM collected and monetized location and driving data while simultaneously reassuring customers it would not do so. The settlement imposes concrete operational restrictions on GM beyond the financial penalty.

Under the terms, GM must halt all sales of driver data to consumer reporting agencies for five years. The company is also required to delete retained data within 180 days unless it secures explicit customer consent. GM must additionally request that analytics firms Verisk Analytics and LexisNexis permanently purge any data previously transferred to them.

Bonta said the deal compels GM to abandon practices that violated state law and consumer privacy expectations.

Background: OnStar Data Controversy

The conduct at the center of the case was first publicly surfaced by The New York Times in 2024. Reporting at the time revealed that GM’s OnStar connected-vehicle service had been sharing granular trip data with insurance-adjacent data brokers. That information included precise location histories and driving behavior patterns.

GM subsequently discontinued the Smart Driver program in 2024. A company spokesperson said the settlement specifically addresses that discontinued product.

Dual Regulatory Pressure on GM

The California settlement does not stand alone. The Federal Trade Commission had already issued a separate order prohibiting GM and OnStar from selling certain categories of driver data to consumer reporting agencies. California’s action represents a parallel state-level enforcement effort layered on top of that federal restriction.

Bonta’s office noted that existing California insurance regulations likely insulated affected drivers from insurance premium increases that could otherwise have resulted from the disclosed data.

GM’s Market Position

GM carries a market capitalization of roughly $71 billion. The stock hit a 52-week low near $46.82 before recovering sharply. Shares have gained approximately 66% over the past year, with the 52-week high reaching $87.62.

The settlement adds to growing legal and regulatory scrutiny facing automakers over data practices embedded in connected-vehicle platforms. Privacy advocates have long argued that location and behavioral data collected inside vehicles represents some of the most sensitive personal information in existence.

Read Next: What the FTC’s Crackdown on Surveillance-Based Business Models Means for Big Tech