The story about GM sharing driving data from connected vehicles with third parties now has a third installment. That’s the short summary New York Times Reporter Kashmir Hill broke the news that GM sold driving data about certain drivers and certain trips to LexisNexis and Verisk, two companies that help auto insurance companies assess risk. The drivers were enrolled in a program called Smart Driver+, a driving gamification program that GM describes as a way to improve driving behavior. In the background, Smart Driver+ noted incidents that included hard braking, hard acceleration, swerving, and speeding. Insurers then used these incident files to raise rates for their insureds. Two weeks after the first piece was published NOWGM said it severed ties with LexisNexis because “customer trust is our priority and we are actively evaluating our privacy processes and policies.” By that time, a Cadillac driver in Florida whose insurance premium was doubled was already suing submitted.
GM said owners must enroll in the SmartDriver program. In the latest episode, Hill, who focuses on privacy and writes that she has been writing about privacy and technology for more than a decade, then discovered that the Chevrolet Bolt she and her husband had purchased in December 2023 , was also logged into Smart Driver+ and didn’t remember doing this. Her husband requested reports from LexisNexis and Verisk, and sure enough, he received two files summarizing incidents from nearly 300 trips in three months. Since the dealer listed her husband as the primary owner – even though both names were on the vehicle registration document – none of the third-party companies had any data on Kashmir Hill.
Hill said she and her husband checked the OnStar app to see if they were registered with Smart Driver; The app told them this wasn’t the case. They then logged into OnStar on a computer and learned that they were logged in. GM told Hill that a “small group” of owners have encountered this “bug,” which causes the app to display incorrect information.
When she called the salesperson at the dealership and asked when she supposedly signed up, the revealing details emerged. He said that during the sales document process there are three pages that he automatically fills out with “yes”, “yes” and “no” without asking the customer. On the second page, the customer logs into OnStar – the Bolt has been equipped with Connected Access for eight years anyway – and logs the owner into Smart Driver. GM insisted to Hill that car buyers must agree to the terms, and several lines on the page in question instruct the seller to seek the buyer’s consent. The salesman said his salary would be reduced if he didn’t recruit a buyer for OnStar and that GM ranked dealers based on the percentage of vehicles registered with Connected Access. It turns out that the side that chooses OnStar is also the side that chooses Smart Driver+. – At the dealer, a new car buyer could not opt for OnStar and opt out of Smart Driver+. The buyer could opt out of OnStar Connected Services, but the owner would then not receive benefits such as certain OTA updates or remote diagnostics.
When Hill drove to the dealer to ask more questions, she wrote: “[A] An older salesperson said that customers always have to accept the terms themselves. “Perhaps our salesperson mistyped on the phone, and my husband and I forgot for a moment during our car purchase when we were asked to tap ‘Yes’ on that screen.” Hill admits she may have forgotten that A lot of paperwork must be completed to complete a sale.
However, even if Hill had agreed, the digital site in question would not explain how GM might use the information collected by Smart Driver+ – such as by selling the information to third-party companies. And remember, this is information that the driver of the vehicle will not see unless they receive their report from LexisNexis or Verisk.
Two months later, GM ended data sharing with LexisNexis and Verisk, turned off Smart Driver in all GM vehicles and entered into a new trust and privacy offering. It also faces at least 10 federal lawsuits from disgruntled owners over SmartDriver. We recommend reading the full article, which provides much more detail on the topic and comments from those concerned with privacy issues.