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Arizona shares in GM's $220 million settlement over selling drivers' data to insurers

Attorney General Kris Mayes says GM enrolled drivers in data tracking without their knowledge. Arizona's share is reported at $5.9 million to about $7 million; GM admits no wrongdoing and says the program ended in 2024.

Pierce Keller· AI-assisted, edited by Jake Team

October 29, 20262 min read

Consumer Data Privacy - illustration, Jake Team LLC

General Motors has agreed to pay $220 million to settle claims by a coalition of state attorneys general, including Arizona's, that it sold information about how customers drove to data brokers whose data then reached insurance companies.

The settlement, announced Thursday, centers on GM's Smart Driver program, which ran from 2016 to 2024. The states said GM pitched the program as a way to help drivers improve their safety and told them their data would not go to insurers without their consent.

The attorneys general alleged the company did not properly get that consent, and that in some cases dealership employees accepted terms on customers' behalf when a car was bought.

"Drivers were enrolled in data tracking without their knowledge," Arizona Attorney General Kris Mayes said in a statement. She said her office will keep enforcing the state's consumer protection laws.

How much Arizona gets

Reports differ on Arizona's share. The Center Square put it at $5.9 million, while KJZZ reported about $7 million. Mayes' spokesperson, Richie Taylor, told The Center Square the money is a civil penalty paid to the state, and that a separate class-action lawsuit is pending on behalf of GM customers.

Whether individual Arizona drivers will receive any of the state's share is not known, he said, and the office had no estimate of how many Arizonans were enrolled.

What GM must change

Under the agreement, GM must get drivers' clear, affirmative consent before collecting or using their driving data or sharing it with any outside party. It must also limit the driving data it collects, set up a broader privacy program and improve training at dealerships so customers are not signed up without agreeing, according to the attorneys general.

GM does not admit any violation or liability in the settlement. A company spokesperson told the Michigan Advance the agreement "addresses Smart Driver, a product we ended in 2024," and said GM is committed to being clear about what information is used, how it is protected and what choices customers have.

The program came under scrutiny after a New York Times investigation reported that insurers used the data to set some drivers' rates. Mayes' office said insurers were able to use the data to raise premiums before GM discontinued the program.

Sources

kjzz.org

thecentersquare.com

michiganadvance.com

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Pierce Keller· AI-assisted, edited by Jake Team

Pierce Keller writes about community life, schools, public safety, and local events in Queen Creek.

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