What's happened
California has reached a civil settlement with General Motors over the sale of driver data collected via OnStar, with GM to pay $12.75 million and restrictions on data use. The case, announced by Attorney General Rob Bonta, centers on the sale of location and driving data to data brokers between 2020 and 2024. Court approval is required for the payout and accompanying limits.
What's behind the headline?
Analysis
- GM has faced heightened scrutiny over in-vehicle data practices as regulators focus on consumer privacy protections.
- The settlement signals California’s willingness to impose penalties and behavioral constraints on data brokers and automakers beyond general consumer rights, potentially altering data-sharing incentives for the industry.
- California drivers are not expected to receive direct payouts; the penalty goes to the state, with court approval still pending.
- The case underscores ongoing debates about consent, data policy disclosures, and the practical enforceability of privacy promises in car ecosystems.
- Moving forward, automakers may accelerate privacy-by-design measures and limit data-sharing to avoid future sanctions, while regulators may increase scrutiny of data-driven business models in mobility.
How we got here
The dispute grows from a 2020-2024 period during which GM collected names, contact info, geolocation and driving-behavior data via OnStar and sold it to Verisk Analytics and LexisNexis Risk Solutions. The investigation involved multiple district attorneys and the California Privacy Protection Agency and follows prior reporting by The New York Times. California’s action includes a five-year ban on selling driving data to data brokers and new usage restrictions.
Our analysis
CalMatters reports the settlement terms and quotes Attorney General Rob Bonta on the nature of the agreement. The Guardian provides context on the size of the penalty and the five-year restriction on data sales. AP News notes the settlement as the largest under the California Consumer Privacy Act and frames it within an ongoing state investigation.
Go deeper
- What does GM say about the settlement?
- Will this set a precedent for other automakers?
- How might consumers see changes in data sharing and privacy policies?
More on these topics
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Rob Bonta - Attorney General of California since 2021
Robert Andres Bonta (born September 22, 1971) is a Filipino and American lawyer and politician who has served as the 34th attorney general of California since 2021. A member of the Democratic Party, he previously served as a member of the California State
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California - US State
California is a state in the Pacific Region of the United States. With 39.5 million residents across a total area of about 163,696 square miles, California is the most populous U.S. state and the third-largest by area, and is also the world's thirty-fourt
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General Motors - Vehicle manufacturer
General Motors Company, commonly referred to as General Motors, is an American multinational corporation headquartered in Detroit that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services, with global he
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OnStar - Subsidiary
OnStar Corporation is a subsidiary of General Motors that provides subscription-based communications, in-vehicle security, emergency services, hands-free calling, turn-by-turn navigation, and remote diagnostics systems throughout the United States, Canada