General Motors agreed to a $12.75 million settlement with California over unauthorized sales of customer driving data collected through its OnStar service.
The settlement resolves allegations that GM collected driving information from OnStar users and sold it to data brokers without proper consent. OnStar, GM's connected vehicle service, gathered location, speed, and other driving metrics from customers.
California regulators claimed GM violated consumer privacy laws by monetizing this data without clear disclosure or opt-in agreements. The automaker maintained it followed its terms of service, though critics argued the language was insufficiently transparent.
Under the settlement, GM must revise its data practices and provide clearer notices to customers about how their information is used. The company may continue selling driving data but only with explicit customer permission.
The case reflects growing scrutiny of automakers' data collection practices. Vehicles increasingly generate detailed information about driving habits, locations, and behavior—data that companies view as valuable but regulators say requires stricter protections.
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