Cybersecurity

GM to pay $220 million to resolve claims it sold driving habits data

General Motors has agreed to pay $220 million to settle claims that it illegally sold driver and location information to data brokers, including insurance companies, by collecting data on driving habits through its Smart Driver program without obtaining explicit consent from drivers. The company also failed to notify drivers that they were enrolled in the program. The settlement requires GM to limit the data it collects and obtain express consent from drivers before collecting their information. The allegations date back to GM's now-discontinued Smart Driver program, which collected data such as acceleration, braking, and trip length. GM allegedly sold this data to data brokers, who then sold it to insurance companies, resulting in higher premiums for some drivers. The settlement comes after a similar case in California, where GM paid $12.75 million to settle similar claims. 36 US attorneys general were involved in the case, led by Oregon AG Dan Rayfield and Washington AG Nick Brown.

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