GM Agrees To Pay $12.75 Million To Settle California Lawsuit Over Misuse Of Customers' Driving Data

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Following its settlement with the FTC earlier this year over its sale of drivers' data to brokers, General Motors has now also reached a settlement in California. The company agreed to pay $12.75 million in civil penalties to settle the lawsuit led by Attorney General Rob Bonta on behalf of the people of California, and is banned from selling driving data to consumer reporting agencies for five years. The lawsuits came after a 2024 New York Times report revealed that GM collected consumers' driving data through its OnStar program and sold this information to data brokers Verisk Analytics and LexisNexis Risk Solutions, which in turn could market the data to auto insurers.

In some cases, that driving data could be used by insurers to increase customers' rates. However, in California, customers were likely spared this consequence, as laws in the state prohibit insurers from using driving...

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