Texas sues GM for allegedly selling drivers’ data without consent

The state of Texas has initiated legal action against General Motors (GM), alleging the automaker illegally collected and sold data from more than 14 million vehicles without drivers’ consent.

The lawsuit, filed by Texas Attorney General Ken Paxton, stems from a broader investigation into the data practices of several automakers, focusing specifically on GM’s handling of driver information.

Over 1.8 million Texas drivers affected by data collection

According to the lawsuit, GM’s technology was used to gather extensive data on driver behaviours, such as speeding, abrupt braking, sharp steering, seatbelt usage, and driving during late hours.

The information, collected via GM’s OnStar diagnostic system, was reportedly used to create “Driving Scores” for over 1.8 million Texas drivers.

These scores, which assessed driving habits, were then allegedly sold to insurers and other companies.

This data, Paxton argues, could be utilised by insurers to make decisions about raising premiums, cancelling policies, or denying coverage, all without the drivers’ knowledge or consent.

The Attorney General’s office highlighted that these practices could unfairly impact drivers by influencing insurance decisions based on data they were unaware was being collected or sold.

Alleged deceptive practices during vehicle purchases

The lawsuit further accuses GM of deceptive practices during the vehicle purchase and leasing processes.

The Texas Attorney General’s office claims that GM dealers misled consumers into believing that enrolling in the OnStar diagnostic products, which collected the data, was mandatory.

This was allegedly done at a time when consumers were particularly vulnerable, having just completed the often stressful experience of buying or leasing a vehicle.

These alleged practices, according to the lawsuit, constitute a violation of the Texas Deceptive Trade Practices Act.

The state is seeking several remedies, including the destruction of the improperly collected data, compensation for affected drivers, civil fines, and other legal actions against GM.

Legal ramifications and GM’s response

This lawsuit marks a significant escalation in the scrutiny automakers face regarding their handling of consumer data.

With the increasing integration of technology in vehicles, concerns over privacy and data security have become more pronounced.

The case against GM could set a precedent for how automakers collect, store, and share driver information.

GM responded to the lawsuit by stating that they have been in discussions with the Texas Attorney General’s office and are currently reviewing the complaint.

The company emphasised its commitment to protecting consumer privacy but did not provide specific details about the allegations.

The legal action against GM highlights the growing tension between technological advancements in the automotive industry and consumer privacy rights. As vehicles become more connected, the amount of data generated and collected has surged, raising concerns about how this data is used and who has access to it.

Potential impact on the automotive industry

This lawsuit could have far-reaching implications for the automotive industry, particularly in how companies approach data collection and consumer consent.

If Texas succeeds in its case, it may prompt other states to examine the data practices of automakers, potentially leading to a wave of similar legal actions.

Moreover, the outcome of this case could influence future regulations regarding data privacy in the automotive sector.

Legislators may feel compelled to introduce stricter laws governing how automakers collect and use driver data, ensuring that consumers are fully informed and consenting participants in any data-sharing activities.

In the meantime, Texas drivers and others across the country will likely watch closely as the case unfolds.

The lawsuit underscores the importance of transparency and consent in data collection practices, particularly in industries where technology plays an increasingly central role.

As the legal battle between Texas and GM progresses, it will serve as a critical test of how privacy laws are applied in the context of modern automotive technology.

The outcome could shape the future of data privacy standards not just in Texas, but across the United States.

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