California Attorney General Rob Bonta announced a $12.75 million settlement agreement with General Motors (GM) over allegations that the company violated the California Consumer Privacy Act (CCPA).
The violations arise from allegations that the car maker illegally collected and sold Californians’ driving and location data to data brokers Verisk Analytics and LexisNexis Risk Solutions, between 2020 and 2024.
The investigation into this activity began in 2024, following media reports about automakers, including GM, sharing driver behavior with insurers.
The data was allegedly collected through GM’s OnStar subsidiary and its “Smart Driver” system and was reportedly intended for driver-scoring products related to insurance.
The American carmaker, which owns the GMC, Cadillac, Chevrolet, and Buick brands, was previously criticized by the U.S. Federal Trade Commission (FTC) for this unlawful data collection, with the government body banning GM from selling drivers’ data for five years.
The Californian authorities said GM failed to properly notify consumers or obtain their consent for this data collection, and retained the data for longer than necessary, even re-purposing it for sale, and making $20 million nation-wide.
“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,” Attorney General Rob Bonta stated.
“This trove of information included precise and personal location data that could identify the everyday habits and movements of Californians.”
The amount of $12.75 million in civil penalties is a record in the state’s history, and the first case of enforcement action focused on data minimization rules.
In addition to the fine, GM is also required to:
- Stop selling driving data to consumer reporting agencies and brokers for five years.
- Delete retained driving data within 180 days unless consumers explicitly consent to retention.
- Ask LexisNexis and Verisk to delete the data they received previously.
- Implement a stronger privacy compliance program and submit regular assessments to regulators.
The officials said California drivers were unlikely to have faced higher insurance premiums as a result of GM’s data sales, thanks to state law prohibiting insurers from using driving data to set rates.
BleepingComputer has contacted GM with a request for a comment on California’s announcement, but we have not received a response by publication time.
Update 5/12 – A GM spokesperson sent BleepingComputer the below comment:
“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.” – GM spokesperson
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