The State of Texas has filed a lawsuit against General Motors, accusing the automotive giant of illegally farming and selling driver data without proper consent.
This filing marks the first major lawsuit from the state against an auto manufacturer amid a broader investigation into data privacy practices within the industry, reported CNN.
The lawsuit, filed by Texas Attorney General Ken Paxton, claims that General Motors (GM) employed advanced technology to monitor and record detailed driving behaviors, including speed and adherence to traffic laws. Beginning in 2015, this data was reportedly shared with multiple companies, which used it to influence insurance rates by reviewing drivers’ habits.
The complaint alleges that the external firms that purchased the data used it to generate “driving scores.” These scores were then sold to insurance companies, raising significant concerns about privacy and consumer rights.
“The technology in modern vehicles enables manufacturers to collect millions of data points about the people driving them,” Paxton said via a press release in June announcing his investigation.
The lawsuit contends that GM misled its customers by promoting programs like OnStar Smart Driver as tools for enhancing driving safety. However, it argues that by enrolling in these programs, customers inadvertently consented to the collection and sale of their driving data without fully understanding the implications.
“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,” Paxton said in a July press release announcing the lawsuit. “Companies are using invasive technology to violate the rights of our citizens in unthinkable ways.”
In response to the lawsuit, a GM spokesperson told CNN, “We’ve been in discussions with the Attorney General’s office and are reviewing the complaint. We share the desire to protect consumers’ privacy.”
However, Paxton’s office contends that the lawsuit is a direct result of the lack of privacy protection for GM’s customers.
“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,” Paxton said.