GM faces Texas lawsuit for allegedly violating drivers' privacy and selling data to insurer

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The state of Texas has filed a lawsuit against General Motors (GM), alleging that the automaker illegally collected and sold sensitive driver information without obtaining explicit consent. Texas Attorney General Ken Paxton announced the legal action, which highlights serious privacy concerns and potential consumer rights violations.

 

Background of the Lawsuit

The lawsuit stems from an investigation initiated in June 2024, which aimed to uncover the data collection practices of several automakers. According to Paxton, the investigation revealed that GM had installed technology in over 14 million vehicles, starting from the 2015 model year, to collect detailed driving data. The complaint alleges that this data was subsequently shared with insurance companies and other third parties without drivers’ knowledge or permission.

 

Allegations Against General Motors

The lawsuit centers on GM’s OnStar diagnostic services. It is claimed that customers were misled into believing enrollment in these services was mandatory. Once enrolled, the technology reportedly collected extensive data on driving behavior, such as speed, braking patterns, and seatbelt use. This information was then used to compile “Driving Scores,” which could influence insurance premiums, policy cancellations, or coverage denials.

 

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Companies are using invasive technology to violate the rights of our citizens in unthinkable ways. Our investigation revealed that General Motors has engaged in egregious business practices that violated Texans’ privacy and broke the law. We will hold them accountable.

 

Impact and Potential Consequences

The lawsuit seeks multiple remedies, including the deletion of improperly collected data, financial compensation for affected drivers, and substantial penalties for violating Texas consumer protection laws. This legal action highlights the growing scrutiny over how automakers handle driver data and the potential consequences of unauthorized data collection.

 

General Motors Response

A GM spokesperson has since provided a statement via email. While GM has indicated a willingness to cooperate with the investigation, specific details about the matter remain limited.

 

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We’ve been in discussions with the Attorney General’s office and are reviewing the complaint. We share the desire to protect consumers’ privacy.

 

Broader Context and Industry Impact

The Texas lawsuit against General Motors marks a pivotal moment in the ongoing debate over data privacy and corporate accountability. As this case unfolds, it will be crucial to monitor how the automotive industry responds and adapts to the growing scrutiny surrounding data collection and usage.

 

Ultimately, the outcome of this legal battle could set a precedent for how personal information is handled by corporations, potentially leading to stronger consumer protections and increased transparency.

 

What are your thoughts on the potential implications of this lawsuit for consumers and the automotive industry?

 

• https://www.reuters.com/legal/texas-sues-general-motors-allegedly-collecting-selling-drivers-private-data-2024-08-13/
• https://www.benzinga.com/markets/equities/24/08/40357071/texas-sues-general-motors-over-alleged-unauthorized-collection-sale-of-driver-data-attorney-gene
• https://thehill.com/homenews/state-watch/4826640-texas-sues-general-motors-allegedly-selling-drivers-data/
• https://www.nytimes.com/2024/08/13/business/gm-texas-lawsuit.html

 

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