General Motors sued for allegedly selling driver data to insurers
What's the story
The state of Texas has initiated a lawsuit against General Motors (GM), accusing the automaker of infringing on drivers' privacy rights.
The legal action, announced by Texas Attorney General Ken Paxton, alleges that GM installed technology in over 14 million vehicles to gather data about drivers.
This information was then allegedly sold to insurance companies and other businesses without the drivers' consent.
Investigation details
GM's data collection under scrutiny
The lawsuit follows an investigation launched in June, aimed at uncovering whether several automakers were gathering and selling large amounts of data without driver awareness.
Paxton claims that the data collected by GM was used to develop "Driving Scores."
These scores evaluated the driving habits of over 1.8 million Texas drivers, identifying behaviors like speeding, braking too fast, not using seatbelts, steering too sharply into turns, and driving late at night.
Misuse claims
Alleged misuse of driving data
Paxton further alleges that insurers could use this data when deciding whether to raise premiums, cancel policies, or deny coverage.
The technology in question was reportedly installed on most GM cars starting with the 2015 model year.
The Attorney General also claimed that GM dealers misled buyers into believing that enrolling in its OnStar diagnostic products, which collected the data, was mandatory.
This practice allegedly took place after consumers had completed the stressful buying and leasing process.
Company response
GM responds to privacy violation allegations
In response to these allegations, GM stated, "We've been in discussions with the Attorney General's office and are reviewing the complaint. We share the desire to protect consumers' privacy."
The lawsuit was filed in a state court in Montgomery County, near Houston.
It seeks multiple remedies for violations of the Texas Deceptive Trade Practices Act, including the purge of improperly collected data, compensation for drivers, and civil fines.