GM settlement rekindles debate over connected car privacy
Synopsis
General Motors agreed to a $12.75 million settlement tied to connected car privacy allegations involving OnStar driver data. Regulators said driving behavior and location information was shared with outside companies without sufficient consumer awareness, adding pressure on automakers as scrutiny over vehicle telematics and insurance-linked tracking grows.
GM settled a California investigation into connected car privacy practices involving OnStar driver data collection, sharing, and consumer consent requirements.
Key Highlights
- GM agreed to pay $12.75 million over connected car privacy and driver data-sharing allegations.
- California said OnStar data included locations, speed records, braking activity, and acceleration patterns.
- FTC earlier imposed separate restrictions on GM’s handling of geolocation and driving behavior data.
- Regulators globally are increasing oversight of connected vehicle data collection and consent practices.
Connected-car privacy concerns returned to the forefront after General Motors agreed to pay $12.75 million to settle a California investigation into its collection and sharing of driver data through its OnStar systems.
California officials said GM shared driving behaviour and location data with third-party data brokers between 2016 and 2024 without adequately informing consumers. The settlement also blocks GM from selling certain driver data for five years.
Authorities said the information included names, addresses, phone numbers, precise vehicle locations, speed records, braking activity, and rapid acceleration data. Insurers outside California later used some of that information to help assess driving risk.
The settlement still requires court approval. State officials described it as the largest privacy-related enforcement action involving connected vehicle data in California.
Insurance Tracking Concerns Gain Attention
The case arrives as regulators and consumer groups increase scrutiny of how automakers handle connected car privacy and telematics data.
Modern vehicles collect large volumes of information through internet-connected systems, including navigation history, driving patterns, diagnostics, and vehicle performance records. Privacy advocates have warned that many drivers remain unaware of how much data newer vehicles can transmit.
The issue gained wider attention in 2024 after reports revealed several automakers shared telematics data with data brokers and insurance-related firms. A 2023 Mozilla Foundation report called cars one of the weakest product categories for consumer privacy protections.
In January 2026, the Federal Trade Commission finalised a separate order against GM and OnStar over similar allegations tied to geolocation and driving behaviour data. The FTC imposed restrictions on GM’s future data-sharing practices and required stronger consumer consent measures.
Wider Pressure on Automakers
Connected car privacy rules are tightening across multiple markets as regulators examine how automakers store, process, and monetise vehicle data.
Australia’s Privacy Act review has also increased focus on how companies manage consumer data and obtain consent, particularly for digital and connected services. In Europe, regulators have already introduced stricter data protection requirements under GDPR rules affecting automakers and technology firms.
GM discontinued its Smart Driver program in 2024 after growing regulatory scrutiny and customer complaints. The company reported approximately $187 billion in revenue for 2025, according to company filings.
FAQs
Q1. What is the GM connected car privacy settlement about?
California said GM shared driver location and behavior data collected through OnStar without proper consumer consent.
Q2. What type of data was reportedly collected from drivers?
Authorities said the data included GPS locations, speed records, braking activity, acceleration patterns, and contact information.
Q3. Why are regulators focusing on connected car privacy?
Modern vehicles collect large amounts of telematics and driving data, raising concerns about transparency, consent, and third-party sharing.
Q4. Did GM stop the Smart Driver program?
Yes. GM discontinued the Smart Driver program in 2024 following investigations and consumer privacy concerns.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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