HARRISBURG, Pa., AND TRENTON, N.J. – Pennsylvania and New Jersey will get millions of dollars as part of a settlement agreement with General Motors regarding consumer data sharing, officials announced Thursday.
Pennsylvania will receive $8.67 million, and New Jersey will receive $8.9 million, according to the states’ respective attorneys general.
Pennsylvania Attorney General Dave Sunday and New Jersey Attorney General Jennifer Davenport joined a coalition of 36 attorneys general in reaching the multistate settlement, their offices said.
The settlement resolved allegations that General Motors illegally sold consumers’ private driver behavior and location data to third parties, including data brokers, who then sold the data to insurance companies, according to news releases from Sunday and Davenport.
“Pennsylvanians deserve transparency and honesty about how their personal data is collected, shared, and used,” AG Sunday said.
The settlement requires General Motors to get consent from consumers before collecting or disclosing driving and location data, Sunday’s office said.
Officials say General Motors enrolled millions of drivers in their Smart Driver program, which tracked their driving habits. The program was pitched as a driver safety tool, the AG said, and drivers were not told their data would be shared with insurers.
Information included how many times a person drives their car, the start and end times of each drive, how fast a driver goes, and how many times they brake or accelerate, according to a news release from AG Davenport’s office.
The New York Times reported that insurance companies used this information to change rates, sometimes increasing premiums. After the report, General Motors discontinued the Smart Driver program, officials say.
“This settlement holds GM accountable for violating consumers’ privacy and contributing to higher insurance costs for many New Jersey families already struggling with affordability,” AG Davenport said.
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