GM pays Alaska $2.5M in data deal

General Motors will pay Alaska $2,508,118 as part of a $220 million settlement with 36 states. The payment resolves allegations that the automaker illegally sold consumers' private driving data.

From 2016 through 2024, GM enrolled millions of drivers in its Smart Driver program. The tool tracked driving habits and was marketed as a way to improve safety. GM told drivers it would not share their data with insurers without consent. A coalition of states found that GM sold the data to brokers who used it for insurance products.

The brokers then sold the data to insurance companies. Those companies used the information to adjust driver premiums. The OnStar app also incorrectly told more than 370,000 drivers they were not enrolled in the program. GM later unenrolled these drivers without notifying them of the error. The company discontinued the program after a New York Times report revealed the details.

Cori Mills, acting Alaska Attorney General, said GM will implement a data privacy program to ensure meaningful safeguards are in place. She stated the settlement holds GM accountable and reinforces the state's commitment to protecting personal information.

The agreement requires GM to obtain affirmative express consent before collecting or disclosing driving and location data. The company must also limit the amount of driving data it collects. GM agreed to oversight and training requirements at its dealerships to prevent unauthorized enrollment in data collection programs.