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General Motors has agreed to a $12.75 million settlement to resolve a California investigation into the unauthorized sale of driver location and driving behavior data. The settlement addresses allegations that the automaker sold sensitive information belonging to hundreds of thousands of Californians to data brokers without proper consent. California Attorney General Rob Bonta stated that these actions violated state privacy laws designed to protect consumer information. While the financial penalty is negligible relative to the company's market capitalization, it underscores significant ongoing regulatory risks. This development also highlights ESG concerns regarding data privacy and corporate governance within the automotive industry. As part of the agreement, GM is expected to enhance its transparency and disclosure practices regarding data collection.
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