GM Settles $12.75M Privacy Case in California
General Motors has agreed to a $12.75 million settlement over privacy violations involving driver data. Discover how this impacts consumer rights and GM's future practices.
GM's Privacy Settlement Overview
General Motors (GM) has reached a significant settlement with California law enforcement, led by Attorney General Rob Bonta, regarding the unauthorized sale of driver data. Allegations state that GM sold sensitive information, including names, contact details, and driving behavior, to data brokers like Verisk Analytics and LexisNexis, generating approximately $20 million in revenue.
As part of the settlement, GM will pay $12.75 million in civil penalties and is prohibited from selling driving data to consumer reporting agencies for five years. Additionally, GM must delete any retained driver data within 180 days unless consent is obtained from customers. This settlement underscores the importance of data minimization in California's privacy laws, emphasizing that companies cannot retain data for unauthorized purposes.
- Key points of the settlement include:
- $12.75 million in penalties
- Five-year ban on selling driving data
- Requirement to delete retained driver data
- Assurance of improved privacy practices moving forward