Texas Attorney General Ken Paxton has taken legal action against General Motors, accusing the automaker of secretly collecting and selling drivers’ data to insurance companies without informing or getting consent from the vehicle owners. This GM lawsuit is the first of its kind, following an investigation launched in June into several car manufacturers for allegedly gathering large amounts of data and then selling it without proper authorization.
With no detailed, modern federal law on data privacy and security, many states, including Texas, are stepping in to create their own rules to protect consumers in the rapidly growing data market. This GM lawsuit highlights the increasing concern among state officials about how companies are handling personal information.
General Motors has responded, stating that they are in discussions with the Attorney General’s office and are reviewing the lawsuit. The company mentioned that they also value the importance of protecting consumer privacy, reflecting a broader industry concern about data security.
The GM lawsuit focuses on GM’s use of technology in vehicles from 2015 onward. According to the Attorney General’s office, GM is accused of using systems that collected, recorded, analyzed, and transmitted detailed information about how drivers used their vehicles. This data was then sold to several other companies, including at least two that created “Driving Scores” based on the data. These scores were then sold to insurance companies, potentially impacting drivers’ insurance rates without their knowledge.
Insurance companies often offer programs where customers can choose to share their driving data in exchange for possible discounts, rewarding safer driving habits. However, the Attorney General’s office believes that GM misled its Texas customers by promoting programs like OnStar Smart Driver, which not only offered benefits but also enabled the collection and sale of detailed driving data without clearly informing users.
The lawsuit argues that GM’s explanations were too complex and did not clearly explain the extent of data collection and its sale. The Attorney General’s office is pursuing this GM lawsuit to ensure that consumers’ privacy is respected and that companies are required to follow transparent and lawful data practices.
This legal case could set an important example as more states begin to regulate the data industry and protect consumers from the unauthorized use of their personal information.
