Texas is suing General Motors for “unlawfully collecting drivers’ private data and selling it” to other companies.
Several automakers—specifically General Motors, Honda, and Hyundai—have been under scrutiny for collecting and selling customer driving data to outside companies, including insurance companies. The automakers are accused of sharing customer data without first obtaining informed consent.
Texas Attorney General Ken Paxton is taking aim at General Motors, saying the company uses “false, deceptive, and misleading business practices.”
General Motors used technology installed in most 2015 model year or newer GM vehicles to collect, record, analyze, and transmit highly detailed driving data about each time a driver used their vehicle. General Motors sold this information to several other companies, including to at least two companies for the purpose of generating “Driving Scores” about GM’s customers and selling these scores to insurance companies. General Motors deceived many of its customers when it compelled them to enroll in its products, including OnStar Smart Driver, as part of its vehicle “onboarding” process and told them that failing to enroll would result in the deactivation of their vehicle’s safety features. Unbeknownst to customers, however, by enrolling in GM’s products, they were “agreeing” to General Motors’ collection and sale of their data. Despite lengthy and convoluted disclosures, General Motors never informed its customers of its actual conduct—the systematic collection and sale of their highly detailed driving data.
“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,” said Attorney General Paxton. “Companies are using invasive technology to violate the rights of our citizens in unthinkable ways. Millions of American drivers wanted to buy a car, not a comprehensive surveillance system that unlawfully records information about every drive they take and sells their data to any company willing to pay for it.”
AG Paxton opened an investigation into several automakers accused of selling customer data. While the initial press regarding the investigation didn’t name which companies were being targeted, it’s a safe bet Hyundai and Honda are two of the others.
AG Paxton is coming off of a major win against Meta, in which the social media giant settled for $1.4 billion over unauthorized biometric data collection. The settlement is “largest settlement ever obtained from an action brought by a single state.”
With the Meta win under Paxton’s belt, General Motors may face an uphill battle.
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