Automaker Settlement: GM Pays Connecticut $6 Million Over Driving Data

General Motors will pay Connecticut more than $6 million to resolve claims that the company sold customers' private driving data to brokers, who then sold that information to insurers for rate-setting. Attorney General William Tong announced the deal on Thursday. The payment is part of a wider $220 million settlement involving 36 states in total.

The dispute centers on GM's "Smart Driver" program, which operated between 2016 and 2024. According to Tong, the program tracked more than 10.2 million Americans, including at least 123,143 residents of Connecticut. The company told customers their data would not be shared with insurers without express consent, but the multistate coalition found that GM sold the private information to data brokers under contracts specifically designated for insurance products.

"GM turned private vehicles into mobile insurance surveillance machines without consumer consent or awareness," Tong said in a news release. He noted that the data was personal, identifiable, and specific. It included how many times a person drove, the start and end times of each drive, the frequency of hard braking or acceleration, and whether drivers exceeded the speed limit. Insurers used these details to adjust rates, sometimes increasing premiums.

Tong stated that GM also failed to notify drivers if their data was being tracked. In one instance, an app mistakenly told more than 370,000 drivers that they were not enrolled in the Smart Driver program. The company discontinued the program in 2024 following a report by The New York Times.

A GM spokesperson said in an emailed statement that the company has taken steps to strengthen its privacy practices. "Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it's protected, and the choices customers have about what they share," the spokesperson said.

The settlement requires GM to obtain consent before collecting or disclosing customer data going forward. The company must also limit the driving data it collects and protect personal information as part of a comprehensive data privacy program. Tong said GM agreed to training requirements at dealerships to protect consumers from data collection schemes.

Several consumer class action cases remain pending against GM. The Federal Trade Commission settled with the company early last year in an agreement that provided limited injunctive relief but did not include a monetary payment.