In a victory for consumer privacy, a major car manufacturer has agreed to a settlement exceeding $12 million. Following a two-year legal battle regarding the alleged misuse of customer driving data, General Motors will pay $12.75 million in penalties according to California prosecutors, led by Attorney General Rob Bonta. The accusations involved GM selling the personal data of hundreds of thousands of Californians to data brokers like Verisk Analytics and LexisNexis Risk Solutions. This data included individuals’ names, contact information, geolocation, and driving behavior, raising concerns about the disclosure of sensitive information. Despite GM earning approximately $20 million from selling OnStar data, they will now cease selling driving data to consumer reporting agencies for five years, delete existing data within 180 days unless retention is permitted by the driver, and implement a privacy program to assess data collection practices. This legal resolution underscores a significant step forward in safeguarding consumer data privacy.
