GM Settles for $12.75M Over Unauthorized Sale of Driver Data in California

General Motors has reached a settlement with California law enforcement, agreeing to pay $12.75 million for selling the personal data of California drivers without their consent. The data included names, geolocation, and driving behavior, collected through GM's OnStar program, and was sold to data brokers Verisk Analytics and LexisNexis Risk Solutions. Despite concerns raised by customers regarding potential increases in insurance rates, California's attorney general stated that the data sales did not affect insurance pricing due to state laws prohibiting such practices. GM made approximately $20 million from these sales. As part of the settlement, GM will cease selling driving data to consumer reporting agencies for five years and must delete retained driver data within 180 days unless consent is obtained. The case emphasizes the importance of data minimization under California's privacy laws.

Key Points: • GM sold California drivers' data without consent, leading to a $12.75 million settlement. • Data included sensitive information such as geolocation and driving behavior. • Settlement mandates GM to stop data sales and delete retained data within 180 days.