General Motors has agreed to pay $220 million to settle allegations that it improperly sold confidential driving behavior and location data to third-party brokers. The information was subsequently passed on to insurance companies, which used it to determine and, in some cases, raise insurance premiums. The settlement, announced Thursday, addresses claims brought by the attorneys general of 35 U.S. states and the District of Columbia related to GM’s Smart Driver program.

Launched in 2016 and discontinued in 2024, the Smart Driver program enrolled millions of participants who were encouraged to share driving data to improve their personal safety. However, regulators contended that GM violated consumers’ privacy by selling data without obtaining explicit permission, contradicting promises made during enrollment. Many participants also had subscriptions to GM’s OnStar service, which provides safety, navigation, and vehicle diagnostic assistance.

The settlement requires GM to impose stricter controls on the types of driving data collected and mandates that the company secure explicit consent from drivers before gathering or sharing such information in the future. This resolution follows scrutiny from various regulators concerned about GM’s data handling practices.

GM has faced accusations that it misled program participants by marketing Smart Driver as a tool for enhancing driving safety, while simultaneously monetizing the collected information without transparency. The states’ attorneys general argued that this practice harmed consumers by compromising their privacy and exposing them to increased insurance costs. GM has acknowledged the settlement but did not admit to wrongdoing as part of the agreement.