$220 Million Settlement Requires General Motors to Restrict Driving Data Collection
Key Facts
New York’s attorney general announced on October 29, 2026, that the state had joined a coalition of 35 other attorneys general in a $220 million settlement with General Motors. The case concerns the Smart Driver program, through which the company tracked driving habits, not an allegation that the OnStar app itself collected the data. The attorney general’s office said GM sold drivers’ data to data brokers and that the app incorrectly told more than 370,000 drivers they were not enrolled in the program. The settlement included a $12,054,341 share for New York. Attorney General Letitia James said the coalition had reached the settlement with the company; its terms place restrictions on data collection and sharing, and require drivers’ consent.
According to the attorney general’s office, GM enrolled millions of drivers in Smart Driver between 2016 and 2024, and the program tracked driving habits. New York said more than 700,000 drivers in the state were enrolled in the program. Meanwhile, the OnStar app incorrectly told more than 370,000 drivers they were not enrolled, while the company collected and sold their data. The state’s statement said GM sold the information to data brokers under contracts specifying its use in insurance products. The brokers then sold the information to insurance companies, which could change premiums based on driving habits. Details of the case link how drivers were informed of their enrollment status with the use of their data in the insurance sector.
The settlement requires GM to limit the driving data it collects and obtain drivers’ express consent before collecting or sharing data. It also includes internal and third-party assessments to protect data and privacy. These commitments follow the company’s discontinuation of Smart Driver in 2024, according to Reuters, after the program began enrolling drivers in 2016. The new terms make prior consent for data collection and sharing a company requirement, alongside assessment procedures. The settlement’s scope remains tied to the driving data program examined in the investigations. New York’s $12,054,341 share is part of the $220 million total settlement.
The settlement follows a separate action by the U.S. Federal Trade Commission in January 2025 involving GM and OnStar. The order announced by the commission included a five-year ban on disclosing sensitive geolocation and driving behavior data to consumer reporting agencies. Commission Chair Lina Khan said the company tracked and sold precise location and driving behavior data, and in some cases collected data every three seconds. In May 2026, California announced a separate settlement that included $12.75 million in civil penalties, which it described as the largest under the state’s Consumer Privacy Act up to that point. California said its drivers had not faced premium increases because of the data sales, as state insurance laws prohibit the use of driving data to set prices. These actions show differences in the impact reported by the authorities across states, alongside federal restrictions on disclosure.
The announcement came as GM’s third-quarter 2026 results showed revenue of $50.015 billion and net income attributable to shareholders of $3.335 billion. Adjusted diluted earnings per share were $3.70, compared with $2.80 in the third quarter of 2025. Revenue rose 2.9% year over year, while adjusted EBIT increased 21.6%. According to EL7 data, the stock closed at $86.16 on November 6, down from $89.33 on November 5. The evidence does not include verified figures supporting a decline of 7% or more, or the highest price during the November 6 session. The company also announced a multiyear $20 billion share repurchase authorization on October 20, with no specified expiration date.
GM updated its 2026 financial outlook when it announced its third-quarter results. It narrowed its adjusted EBIT forecast range to $14.5–15.5 billion, from $14.0–16.0 billion previously. At the same time, it raised its adjusted automotive free cash flow forecast range to $11.5–12.5 billion, compared with the previous range of $9.5–11.5 billion. These estimates for fiscal 2026 remain the company’s latest announced financial outlook. The forecasts come alongside the settlement commitments concerning driving data, including express consent and limits on collection and sharing. The evidence did not specify another date for implementing the settlement terms or a next milestone in the case.