General Motors settles for $220 million over private driver data sales
What happened
General Motors agreed to pay $220 million to settle allegations that it illegally sold consumers’ private driver behavior and location data. The data, collected by GM’s OnStar Smart Driver, was sold to data brokers who then provided it to insurance companies to help set rates for customers. The settlement also requires General Motors to obtain express consent from consumers before collecting or disclosing this type of data.
From delaware.gov
Why it matters
The settlement, which was led by Attorney General Kathy Jennings, establishes new requirements for how General Motors handles consumer data. Delaware will receive $4,726,779 from the agreement.
Multiple data privacy issues have recently emerged, including allegations against General Motors from the FTC and a lawsuit in Texas against Allstate.
From delaware.gov
Who's involved
- Kathy JenningsLed a coalition of attorneys general challenging General Motors' data practices.
- General MotorsAgreed to the $220 million settlement regarding the sale of consumer data.
- DelawareThe state where Attorney General Kathy Jennings acts as legal representative.
- OnStarThe system used by General Motors to collect the private driving and location data.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Delaware Department of InsuranceSpeculative
The Department of Insurance might face changes in the standards for data consent for insurance companies it regulates.
- DelawareSpeculative
Delaware may see an increase in state revenue through the financial settlement.
Keep exploring
The entities involved
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Kathy Jennings
attorney and politician
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General Motors
American multinational automotive company