Texas Sues GM for Allegedly Selling Drivers’ Private Data

Texas Attorney General Ken Paxton has filed a lawsuit against General Motors, accusing the automaker of unlawfully collecting and selling private driver data to insurance companies. The lawsuit, which follows an earlier investigation, claims GM misled consumers about the privacy of their information.

The lawsuit, filed on August 15, 2024, alleges that General Motors has been secretly collecting and selling driver data since 2015. Specifically, the system collects data to assess driver performance and habits by calculating “Driving Scores.” This includes taking into account “bad” driver behaviors, such as speeding, braking too fast, steering too sharply, not using seatbelts, and driving late at night.

The data, which includes detailed driving habits and personal information, was allegedly sold to insurance companies without the drivers' consent.

Called “OnStar Smart Driver,” this system has been reportedly installed on as many as 14 million GM vehicles going back as far as its 2015 models. According to a release by the General Attorney’s office, GM collected this information on over 1.5 million Texans.

An important element of the lawsuit is its focus on what appears to be GM's deceptive practices. According to the official statement, “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.”

It continued, “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.”

According to Paxton, GM's actions violate the Texas Deceptive Trade Practices Act, which protects consumers from false, misleading, and deceptive business practices.

This lawsuit is the latest in an ongoing campaign by the Texas Attorney General to clamp down on big companies' data privacy abuses. Meta was also ordered to pay the state $1.4 billion for privacy violations involving its facial detection features.

“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” said Attorney General Paxton in a statement.