General Motors to pay $220 million in Washington privacy settlement

General Motors to pay $220 million in Washington privacy settlement
GM settles privacy suit

Washington state says General Motors will pay $220 million to resolve allegations that it illegally sold drivers' private behavior and location data to third parties. The case spans a 36-state coalition and centers on claims that data brokers resold the information to insurers that used it in part to set rates.

Highlights

  • General Motors will pay $220 million to settle allegations from a coalition of 36 attorneys general led by Washington over unlawful sharing of driver data.
  • State attorneys general alleged GM sold consumer driving behavior and location data to brokers, who resold it to insurers for setting insurance rates.
  • The settlement demonstrates heightened regulatory and financial risks in the auto sector as scrutiny of connected-vehicle data usage and consumer privacy intensifies.

Multistate case targets driver data practices

As reported by Reuters, Washington Attorney General Nick Brown says the state co-leads a coalition of 36 attorneys general in the case against GM. The settlement addresses allegations that the automaker illegally sold consumers' private driver behavior data and location information to third parties.

Brown says recipients of the consumer data included brokers that sold the information to insurers. Those insurers then used the data in part to help set insurance rates.

Privacy dispute adds pressure on auto data use

The case highlights growing scrutiny of how automakers collect, share and monetize connected-vehicle data. It also underscores the regulatory and financial risks for companies whose data practices affect consumer privacy and insurance pricing.

For the auto sector, the settlement signals that state attorneys general are prepared to pursue multistate enforcement actions when vehicle data is shared in ways regulators consider unlawful. For consumers, the allegations focus on how driving and location records can move beyond the carmaker to brokers and insurers.

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