PA To Receive Millions In General Motors Data-Sharing Scheme Settlement

HARRISBURG, PA — Pennsylvania is among 36 states participating in a $220 million settlement agreement with General Motors over consumer data-sharing allegations. Pennsylvania is expected to receive nearly $9 million under the agreement.

The settlement resolves accusations that General Motors illegally sold consumers' private driver behavior data and location information to third parties - including data brokers who then sold the information to insurance companies.

Pennsylvania Attorney General Dave Sunday said on Thursday that insurance companies used the data they received in part to set insurance rates.

The settlement also requires General Motors to obtain consumers' consent before collecting or distributing consumer driving and location data in the future.

“General Motors promised consumers their personal driving data would not be shared, then turned around and essentially exploited that data by selling it to insurance providers,” Sunday said in a statement.

"This bait-and-switch tactic betrayed consumers’ trust and potentially impacted their insurance rates. Pennsylvanians deserve transparency and honesty about how their personal data is collected, shared, and used.”

According to Sunday, from 2016 to 2024, General Motors tracked the driving habits of millions of motorists in their Smart Driver program. General Motors told drivers this was a way for drivers to improve their driving safety. The company told drivers the information collected would not be shared with insurers without their consent.

Not so.

A coalition of 36 state attorneys general found that General Motors sold the information to data brokers under contracts specifying the data could be sold to insurance companies. Insurers then could change motorists' premiums based on their driving habits.

According to Sunday, the data General Motors sold was "personable, identifiable and specific."

The information gave insurers details on how many times someone drove their vehicle, the start and end times of each drive, how many times they braked or accelerated quickly and how often they went over the speed limit.

The New York Times reported the information was used by insurance companies to change rates, sometimes increasing their premiums. After the Times reported on these practices, the Smart Driver program ended.

The settlement requires General Motors to implement a comprehensive data privacy program. General Motors also agreed to begin training requirements at its dealerships to protect people from enrolling in data collection schemes without their consent.

See the settlement agreement here.