General Motors Caught Selling California Drivers' Data, Settles Privacy Case for $12.75 Million

General Motors has agreed to pay $12.75 million to settle allegations that the automaker secretly sold sensitive data belonging to California drivers without their knowledge or consent. The settlement marks a significant enforcement action in the state's ongoing effort to hold corporations accountable for unauthorized data monetization practices.

The case centers on GM's collection and subsequent commercialization of detailed driving records, location data, and personal information from vehicles sold in California. State regulators and plaintiff attorneys alleged that GM failed to adequately disclose its data-sharing practices to consumers, bypassing required consent mechanisms under California's privacy statutes. The $12.75 million figure reflects both civil penalties and provisions for affected drivers whose information was allegedly exploited.

The settlement reinforces California's position as the most aggressive U.S. jurisdiction in policing corporate data practices. For the automotive industry, the case signals heightened regulatory scrutiny of connected vehicle data streams, which generate substantial revenue through partnerships with insurance firms, marketing platforms, and data brokers. GM's agreement to settle rather than litigate suggests the company sought to avoid prolonged reputational damage and precedent-setting disclosure requirements that could have emerged from a trial. Automotive manufacturers operating in California now face increased pressure to revamp consent frameworks and transparency disclosures surrounding in-vehicle data collection.