GM settles South Dakota data lawsuit

General Motors will pay $2,600,792 to settle legal claims in South Dakota.

Attorney General Marty Jackley announced the settlement on Wednesday. He was one of 36 state officials involved in the agreement. The state accused the automaker of selling private driver behavior and location data to third parties.

These third parties included data brokers who sold the information to insurance companies. Insurers used the data to adjust premiums based on driving habits.

GM enrolled millions of drivers in its Smart Driver Program between 2016 and 2024. The program tracked driving habits. Drivers did not know their data was being sold to outside firms.

Jackley said protecting privacy is a priority. "Our settlement guards privacy by requiring express consent from consumers before collecting or disclosing consumer driving and location data," he said.

The settlement includes new rules for General Motors. The company must now let consumers request their collected data. It must also allow users to delete that data or disable the collection of location and driving behavior.

South Dakota will place the funds in the Attorney General’s Consumer Protection Fund. The money will cover attorney fees and investigation costs. It will also support future consumer protection efforts allowed by state law.

General Motors stated that it discontinued the Smart Driver Program in June 2024.