New Jersey to receive $8.9 million in GM settlement over alleged sale of drivers’ private data
TRENTON, N.J. — New Jersey will receive $8.9 million as part of a $220 million multistate settlement resolving allegations that General Motors illegally sold consumers’ driving behavior and location data to third parties, including data brokers who provided the information to insurance companies.
Attorney General Jennifer Davenport and the New Jersey Division of Consumer Affairs announced the settlement, which involved a coalition of 36 attorneys general. The agreement requires GM to obtain consumers’ affirmative, express consent before collecting or disclosing their driving and location information.
According to state officials, the data provided insurance companies with detailed information about individual drivers, including whether they wore seat belts, exceeded speed limits, braked suddenly or took corners too quickly. Insurers could then use that information to evaluate drivers and potentially increase their insurance premiums.
“New Jersey drivers should not have to worry about their insurance rates going up as a result of their personal information being secretly sold to data brokers by the car company and its partners,” said Attorney General Davenport. “This settlement holds GM accountable for violating consumers’ privacy and contributing to higher insurance costs for many New Jersey families already struggling with affordability.”
“GM’s actions deprived consumers of their right to know how their personal information is being collected, used, and shared,” said Christopher Peterson, Acting Director of the Division of Consumer Affairs. “We will continue to pursue action against businesses that violate the laws protecting consumers from deceptive conduct and privacy invasions.”
GM accused of selling data collected through Smart Driver program
According to the investigation, GM enrolled millions of drivers in its Smart Driver program between 2016 and 2024. The program tracked driving habits and was marketed as a tool to help motorists improve their driving safety.
State officials said GM told drivers their information would not be shared with insurers without their express consent. However, investigators found that the company sold driving data to brokers under contracts specifying that the information would be used for insurance products.
The data brokers subsequently sold the information to insurance companies, which could use it to adjust customers’ premiums based on their driving habits. According to the attorneys general, GM did not disclose to consumers that their information would be sold for that purpose.
Most customers enrolled in Smart Driver while purchasing vehicles at GM dealerships. The company used a combined enrollment process for Smart Driver and its OnStar connected vehicle services, and investigators alleged that dealership employees sometimes accepted terms and conditions on behalf of customers without their consent.
At the time, GM offered incentives encouraging dealerships to enroll as many customers as possible in OnStar. Sales employees received bonuses based partly on enrollment numbers, while dealerships were ranked according to how many customers signed up for the company’s connected vehicle services.
Hundreds of thousands of drivers allegedly misled about enrollment
Investigators also found problems with GM’s systems for notifying drivers about whether their information was being collected.
According to state officials, the OnStar app incorrectly informed approximately 370,000 drivers that they were not enrolled in Smart Driver when they actually were participating in the program. During that time, GM was collecting and selling their driving data.
The company later removed those drivers from the program without notifying them of the error, according to the investigation. Their previously collected information remained with data brokers and insurance companies.
The information sold by GM was detailed and identifiable, including the number of trips drivers made, the start and end times of those trips, instances of sudden braking or rapid acceleration, and whether drivers exceeded posted speed limits.
Insurance companies used the information to adjust rates, sometimes increasing premiums, according to reporting by The New York Times cited by state officials. GM discontinued the Smart Driver program after the newspaper reported on the data-sharing practices in 2024.
Settlement requires stronger consumer privacy protections
In addition to the $220 million nationwide settlement, GM agreed to implement a comprehensive data privacy program designed to limit the driving information it collects and strengthen protections for consumers’ personal information.
The agreement requires the company to obtain affirmative, express consent before collecting or disclosing driving and location data. It also mandates internal and external assessments of GM’s data protection and privacy practices.
The settlement includes additional oversight and training requirements for GM dealerships intended to prevent customers from being enrolled in data collection programs without their consent.
According to the New Jersey Attorney General’s Office, the privacy protections secured through the multistate agreement are stronger than those included in other resolutions involving the same conduct.
The case was co-led by the attorneys general of Washington and Oregon, with New Jersey serving on the executive committee alongside Colorado, Connecticut, Delaware, Illinois, Kentucky, Maryland, Minnesota, Utah and Vermont.
Attorneys general from 24 additional jurisdictions also joined the settlement, including New York, Pennsylvania, Florida, Michigan, North Carolina and the District of Columbia.
New Jersey’s participation involved attorneys and investigators from the Division of Law and Division of Consumer Affairs, including the state’s Data Privacy and Cybersecurity Section and Office of Consumer Protection.
