General Motors agrees to a $12.75 million penalty for illegally selling driver data, resolving a case that could have exposed broader risks.
General Motors will pay $12.75 million to settle allegations it illegally sold driver data to brokers between 2020 and 2024. The settlement, reached with California prosecutors, bars GM from selling such data for five years and resolves claims it failed to notify customers about the sales via OnStar.
The automaker reportedly earned $20 million nationwide from the data sales, which included names, locations, and driving behavior. While the penalty is modest for GM, the settlement mitigates potential legal and reputational risks tied to data privacy violations.
The case highlights growing scrutiny of automakers’ data monetization practices as software-defined vehicles create new revenue streams. Investors view the resolution as a positive step, limiting exposure to larger fines or regulatory action.