Texas Sues General Motors for Allegedly Selling Driver Data to Insurers

Texas Attorney General Ken Paxton has taken legal action against General Motors, alleging that the company engaged in the unauthorized collection and sale of drivers’ personal data to insurance companies. This lawsuit stems from claims that General Motors, in car models manufactured from 2015 onward, implemented data-gathering technology to monitor and collect driver information, specifically focusing on what the company deemed ‘bad’ driving habits.

The lawsuit further alleges that General Motors gathered data on over 1.8 million Texas drivers. These so-called ‘bad’ habits included actions like abrupt braking, sharp cornering, neglecting to wear seatbelts, and nighttime driving. While the extent to which this data was used by insurers to adjust premiums for Texans remains unclear, the lawsuit highlights a potential breach of trust and privacy.

The lawsuit details how General Motors collected and analyzed this data to generate a ‘driver score.’ This score was a compilation of information gathered each time a driver used their vehicle. The attorney general’s office argues that General Motors misled Texan customers by encouraging them to participate in opt-in programs like OnStar Smart Driver. The lawsuit alleges that General Motors failed to adequately inform consumers that opting into these programs implied consent to the collection and sale of their personal data.

This lawsuit has significant implications for consumer privacy and the ethical use of data collected by technology companies. It highlights the need for greater transparency and informed consent from consumers regarding the collection and sharing of their personal information, particularly when it comes to their driving habits and associated risks.

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