General Motors has agreed to a $220 million settlement to resolve a multi-state data privacy lawsuit concerning its OnStar Smart Driver program. The lawsuit, brought by attorneys general from 35 US states and the District of Columbia, alleged that GM collected and sold detailed driving data of millions of customers to insurance companies without proper consent between 2016 and 2024. As part of the settlement, GM must limit data collection, enhance privacy protections, and undergo regular assessments, following a previous five-year ban by the FTC on sharing consumer data with third parties and a separate $12.75 million settlement with California. AI
IMPACT This settlement highlights increased regulatory scrutiny on data privacy practices, potentially impacting how companies collect and monetize user data, including data derived from AI-powered features.
RANK_REASON Settlement of a major multi-state lawsuit against a large automaker regarding data privacy practices. [lever_c_demoted from significant: ic=1 ai=0.4]
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