Tired of ads? Enjoy an ad-free experience by signing up.
👩‍🍳 How we use AI at Tech in Asia, thoughtfully and responsibly.
🧔‍♂️ A friendly human may check it before it goes live. More news here

General Motors to pay $12.75m over driver data

General Motors agreed to pay US$12.75 million to settle claims by California regulators that it collected and sold driver data without consent.

The settlement requires GM to stop sharing driving data with consumer reporting agencies for five years and delete retained driver data within 180 days unless customers agree to keep it.

California Attorney General Rob Bonta said GM collected and sold information including names, contact details, geolocation, and driving behavior from hundreds of thousands of drivers through its OnStar-connected Smart Driver product.

The state said GM made about US$20 million from the practice. GM told Reuters it ended the Smart Driver program in 2024.

GM had previously reached a separate settlement with the US Federal Trade Commission over the same practice.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

GM faces record privacy settlement over alleged data misuse

  • California fined GM US$12.75 million, the largest penalty yet under the California Consumer Privacy Act (CCPA), a California privacy law. It is also the first case tied to the law’s data minimization rule 1.
  • That rule limits how companies use, keep, or share personal data. Regulators said GM kept Californians’ driving and location records after OnStar no longer needed them, then sold the stored data 1.
  • GM’s privacy policy said it did not sell driving or location data. Regulators said GM sold that information to LexisNexis Risk Solutions, a company that provides risk and data products 1. Regulators also named Verisk Analytics, Inc., a data analytics company 1.
  • The case followed 2024 scrutiny of automakers sharing driving behavior data with insurers. It began when one person found their location data in a report they requested, said Nathan Hochman, Los Angeles County district attorney 2.

Automakers’ software push meets tougher privacy rules

  • California also settled privacy cases with Honda and Ford during the past 14 months 2.
  • GM expects software and services revenue to rise by about US$400 million in 2026 3.
  • The automotive data monetization market could reach US$173.2 billion by 2030 4.
  • The settlement adds pressure to carmakers that want revenue from connected-vehicle data as privacy enforcement picks up 4.

Stay ahead in Asia’s tech landscape

You've reached your 2 free content limit for the month. Sign up for free to read the full story.

🏄 For casual readers / 👶 Free

Basic

US$0

Free forever

Get instant access to this article and more every month

0 premium content

Unlimited news briefs

5

5 articles

Ad-free reading experience

Just US$0 per day

⌛Sign up in 20s. No payment details needed.

📖 For learners / 👍 Starter

Lite

US$4.92/month

Billed annually at US$59/year

Get instant access to this article and more every month

4

4 premium content

Unlimited news briefs & articles

Ad-free reading experience

Just US$0.17 per day

Cancel anytime

Our subscriber community includes professionals from these companies:

Stay updated on the go with our mobile app.

Get latest insights with smoother, more personalized experience through TIA mobile app.