General Motors will pay $220 million to settle allegations that it illegally sold drivers’ private behaviour and location data to third parties, including data brokers who then passed that information to insurers, a coalition of 36 attorneys general announced on 29 October 2026.
The coalition comprises 35 states and the District of Columbia and was co-led by Washington and Oregon. The settlement is framed throughout as a resolution of allegations; the sources supplied for this article do not state an admission of wrongdoing by General Motors.
What Smart Driver tracked
Smart Driver ran from 2016 to 2024 and enrolled millions of drivers. It was marketed as a feature that could help improve driving safety, but, according to the attorneys general, it also collected detailed driving information.
That information included trip start and end times, the number of trips taken, hard braking, rapid acceleration, speeding and late-night driving. Together, those signals can build a detailed picture of how, when and where a person drives — information that is far more revealing than a single journey.
How the data reached insurers
Under the allegations, General Motors sold the driver data to third parties, including data brokers. Those brokers then sold it on to insurers, which used the data to set — and in some cases raise — premiums.
The practice came to wider public attention after The New York Times exposed it in 2024. General Motors discontinued Smart Driver in 2024. The settlement therefore concerns a product that had already ended, but whose data practices, the states alleged, had lasting consequences for drivers whose premiums may have been affected.
What the settlement requires
Beyond the $220 million payment, the settlement requires General Motors to limit the driving data it collects, to obtain affirmative express consent before collecting or disclosing driving or location data, and to run a comprehensive data privacy programme.
In practical terms, that shifts the default: rather than data collection being bundled into a safety feature, drivers should have to give clear, affirmative permission before that kind of sensitive driving and location information is collected or shared.
State shares
The $220 million is divided among the participating states. Shares disclosed so far include Arizona at $5.9 million, Pennsylvania at about $8.67 million, Colorado at about $7.2 million, Washington at about $12.3 million, New York at $12.1 million and Oregon at more than $10.4 million.
New York had more than 700,000 drivers enrolled in Smart Driver, according to the state’s announcement — a scale that helps explain why a feature presented as a safety aid became a nationwide consumer-protection case.
Earlier FTC and California settlements
The multi-state settlement is not the first regulatory action over the programme. In January 2025, the US Federal Trade Commission settled with General Motors, barring disclosure of geolocation and driver-behaviour data to consumer reporting agencies for five years.
California reached a separate $12.75 million settlement in May 2026. In its October 2026 filing, General Motors set aside $500 million for investigations and litigation on the matter — a figure that underlines how costly the Smart Driver episode has become, even before any private litigation is resolved.
What this settlement does not do
Importantly, the $220 million goes to the participating states, not directly to drivers, as confirmed by the Michigan attorney general. Drivers should not expect a payment from this settlement.
A separate nationwide class action remains pending, so private claims arising from Smart Driver have not been resolved by this state settlement. General Motors said the agreement addresses Smart Driver, a product ended in 2024, and reinforces steps taken to strengthen its privacy practices.
Unknowns and next steps
What remains unclear is how much individual drivers were affected in premium terms, how completely historical data has been deleted or restricted, and how the pending class action will proceed. Regulators will also be watching whether the new consent and data-minimisation requirements change how connected-car features are designed and marketed across the industry.
Related coverage: Emadan’s report on the UK competition investigation into Meta’s terms for publishers and advertisers is available at https://emadan.store/uk-cma-investigates-meta-exploitative-terms-publishers/.
Frequently asked questions
Did GM admit wrongdoing?
No admission of wrongdoing is stated in the sources for this article. The $220 million resolves allegations made by the attorneys general.
Will drivers receive money from the $220 million?
No. The money goes to participating states, not directly to drivers.
Is Smart Driver still running?
No. General Motors discontinued the programme in 2024.
Sources
- Arizona Attorney General — https://www.azag.gov/press-release/attorney-general-mayes-announces-settlement-gm-company-pay-220-million-sharing
- Pennsylvania Attorney General — https://www.attorneygeneral.gov/taking-action/attorney-general-sunday-secures-220-million-national-settlement-over-allegations-that-general-motors-shared-drivers-private-data/
- Colorado Attorney General — https://coag.gov/press-releases/general-motors-will-pay-220m-for-illegally-sharing-drivers-private-data/
- Reuters via LA Post — https://www.lapost.com/content/gm-to-pay-220-million-to-settle-allegations-it-violated-drivers-privacy
- Engadget — https://www.engadget.com/2301934/general-motors-220-million-settle-multi-state-data-privacy-lawsuit/
