The state of Texas has filed a lawsuit against General Motors, accusing the automaker of installing technology in over 14 million vehicles to collect driver data it could then sell to insurers and other companies without consent.
CNBC reports that Texas Attorney General Ken Paxton announced this week that the lawsuit stemmed from an investigation initiated in June, which examined whether several automakers were collecting and selling vast amounts of data without the knowledge of drivers. The probe revealed that GM had allegedly installed data-collecting technology in most of its vehicles starting from the 2015 model year.
According to Paxton, the data collected by GM was used to create “Driving Scores” that assessed the driving habits of more than 1.8 million Texas drivers. These scores took into account factors such as speeding, hard braking, sharp steering, seatbelt usage, and late-night driving. The concern is that insurers could then use this data to make decisions about raising premiums, canceling policies, or denying coverage altogether.
The lawsuit alleges that GM’s practice involved dealers subjecting unsuspecting consumers to the belief that enrolling in OnStar diagnostic products, which collected the data, was mandatory. This often occurred immediately after the stressful buying and leasing process when consumers were more vulnerable.
Paxton expressed his outrage at the situation, stating, “Companies are using invasive technology to violate the rights of our citizens in unthinkable ways. 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.”
In response to the lawsuit, GM stated that they have been in discussions with the Attorney General’s office and are currently reviewing the complaint. The automaker added, “We share the desire to protect consumers’ privacy.”
The lawsuit, filed in a state court in Montgomery County, near Houston, seeks the destruction of improperly collected data, compensation for affected drivers, civil fines, and other remedies for violations of the Texas Deceptive Trade Practices Act.
This case is not an isolated incident, Breitbart News previously reported that several other automakers, including Honda, Kia, and Hyundai, have been secretly gathering and sharing extensive information about their customers’ driving habits with insurance companies and data brokers. The report highlighted the story of Kenn Dahl, a Seattle software company owner who experienced a 21 percent increase in his car insurance premiums despite being a careful driver with no accident history.
Upon requesting his LexisNexis consumer report, Dahl discovered a 258-page document detailing over 640 trips he and his wife had taken in their Chevrolet Bolt.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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