General Motors Accused of Selling Drivers’ Data to Insurers
General Motors, one of the largest car manufacturers in the world, is facing accusations of collecting data about the “bad” habits of drivers and selling it to insurers without their consent. The state of Texas has filed a lawsuit against the company, claiming that it installed technology on over 14 million vehicles to collect data about driving behavior.
According to the lawsuit, GM, which produces popular brands such as Chevrolet, Cadillac, and Buick, sold the collected data to insurers and other companies without obtaining proper consent from drivers. This data was used to create “driving scores” that determined whether more than 1.8 million Texas drivers engaged in risky driving behaviors, such as driving or braking too fast, taking sharp turns, not using seatbelts, and driving late at night.
The data was collected through the company’s OnStar diagnostics system, which was reportedly installed on most GM vehicles since the 2015 model year. However, it is not clear if the data was used to increase insurance premiums for these drivers.
The news of GM’s alleged data collection and sale emerged during an investigation by the Texas attorney general’s office into whether car manufacturers were secretly collecting and selling large amounts of data without drivers’ knowledge. “Companies are using invasive technology to violate the rights of our citizens in unthinkable ways,” said Texas attorney general Ken Paxton in a statement. “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.”
The lawsuit is seeking the destruction of any improperly collected data, compensation for affected drivers, a civil fine, and other remedies. GM has not yet responded to requests for comment on the matter.
