General Motors Settles California Lawsuit for $12.75 Million Over Customer Data Misuse
GM agrees to pay $12.75 million to settle California lawsuit over misuse of customers' driving data
Engadget
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General Motors (GM) has agreed to pay $12.75 million to settle a lawsuit in California regarding the misuse of customer driving data. The settlement prohibits GM from selling this data to consumer reporting agencies for five years and mandates the deletion of retained data within 180 days unless consent is given.
- 01GM will pay $12.75 million to settle the lawsuit.
- 02The company is banned from selling driving data to consumer reporting agencies for five years.
- 03GM must delete retained driving data within 180 days.
- 04The lawsuit was led by California Attorney General Rob Bonta.
- 05GM must develop a privacy program to assess data collection risks.
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General Motors (GM) has reached a settlement of $12.75 million to resolve a lawsuit in California concerning the misuse of customer driving data. This lawsuit, spearheaded by California Attorney General Rob Bonta, follows a prior settlement with the Federal Trade Commission (FTC) regarding the sale of customer data to brokers. The settlement prohibits GM from selling driving data to consumer reporting agencies for five years and requires the company to delete any retained driving data within 180 days, except for specific internal uses with customer consent. The complaint highlighted that GM collected sensitive information, including names, contact details, geolocation, and driving behavior, without proper consent. Although California's laws protect consumers from having their driving data used by insurers to increase rates, the settlement emphasizes the need for data minimization as mandated by California's privacy laws. Bonta stated that this settlement compels GM to abandon illegal practices and reinforces the necessity of protecting consumer data.
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This settlement reinforces consumer privacy rights in California and ensures that companies like GM cannot misuse customer data without consent.
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