General Motors (GM) found itself in hot water after a 2024 report by The New York Times exposed that automakers, including GM, were sharing driving data with data brokers and insurance companies. This data included information on speed, hard braking, and rapid acceleration, which was then used to adjust insurance pricing.
As a result of this revelation, GM faced several lawsuits. One of the settlements involved GM agreeing to provide clear and conspicuous privacy notices to customers when they enroll in OnStar, a service that offers in-vehicle security and communication. Additionally, GM was mandated to delete all driver data implicated in the lawsuit and seek customer consent before collecting or utilizing any driving data.
California Attorney General Rob Bonta emphasized the significance of data minimization in California’s privacy law in response to the settlement. He stated, “Today’s settlement requires General Motors to abandon these illegal practices and underscores the importance of data minimization in California’s privacy law – companies can’t just hold on to data and use it later for another purpose.”
This settlement serves as a reminder of the importance of protecting consumer data and ensuring transparency in data collection practices. By adhering to these regulations, GM aims to regain trust and demonstrate its commitment to safeguarding customer privacy.