General Motors has reached a settlement to pay $12.75 million in a California data privacy lawsuit that accused the company of selling driver location and data. GM will cease selling customer information to data brokers for five years and provide California drivers with an option to prevent its OnStar service from collecting location data. The lawsuit followed a 2024 report revealing GM and other carmakers shared driving data with data brokers and insurance companies. The FTC finalized a separate settlement with GM and OnStar in January, prohibiting the sale of driver data for five years. Under the California settlement, GM must offer clear privacy notices, delete driver data involved in the lawsuit, and get customer consent before collecting driving data. California Attorney General Rob Bonta emphasizes the importance of data minimization according to state privacy laws.
