General Motors to pay Alaska over $2.5M in data collection case settlement

ANCHORAGE, Alaska (KTUU) - Alaska is one of 36 states that settled with General Motors to resolve allegations that it illegally sold consumers’ private data, according to the Alaska Department of Law.

As part of the settlement, GM will pay a total of $220 million — with $2,508,118 going to Alaska. GM is also required to obtain affirmative express consent from consumers before collecting or disclosing their driving and location data.

According to the department, from 2016–24, GM enrolled millions of drivers in their Smart Driver program, which tracked their driving habits. This was pitched as a way for drivers to improve their driving safety.

While GM told drivers they would not share their data with insurers without their consent, the coalition found they sold it to data brokers that said it would be used for insurance products.

The data brokers also sold the data to insurance companies, who could then change the driver’s insurance premium based on the data. GM’s OnStar app also mistakenly told over 370,000 drivers they were not enrolled in Smart Driver when they were.

The department claims GM later quietly unenrolled these drivers without telling them about their mistake. After the New York Times released a report on the program, GM discontinued it.

The settlement also requires GM to limit the driving data it collects from consumers and protect their personal information going forward. GM also agreed to oversight and training requirements at its dealerships to protect consumers against being enrolled in data collection programs without their consent.

“As part of this settlement, GM will implement a robust data privacy program to ensure that meaningful safeguards are finally in place,” said Cori Mills, acting Alaska Attorney General, in a statement. “This holds GM accountable and reinforces our commitment to safeguarding Alaskans’ personal information.”

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