GM to pay $220 million after selling customer Smart Driver data
Summary
General Motors agreed to pay $220 million to settle claims brought by the District of Columbia and 35 states over sharing data from its Smart Driver program. The settlement follows a separate Federal Trade Commission agreement that restricts GM and OnStar from sharing certain driver data for five years; a third party will assess GM’s compliance with the states’ settlement.Key Facts
- GM marketed Smart Driver as a tool to help parents monitor teen drivers and adults track their driving.
- GM shared Smart Driver data with brokers, who sold it to insurance companies.
- Some drivers said their insurance costs rose after the data was shared, and that they had not agreed to the sharing.
- GM and its OnStar subsidiary reached a settlement with the Federal Trade Commission that was finalized in January.
- The FTC agreement bars GM and OnStar from sharing geolocation and driver behavior data with third parties for five years.
- GM discontinued Smart Driver across its vehicle range.
- The District of Columbia and 35 states sued GM, and the settlement requires a third party to assess compliance with its privacy policy.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
