Texas Attorney General Sues General Motors Over Alleged Illegal Sale of Driver Data

Texas Attorney General Ken Paxton has filed a lawsuit against General Motors (GM), accusing the automaker of unlawfully collecting and selling drivers’ data without their consent. The lawsuit, filed on Tuesday, alleges that GM secretly gathered detailed driving information from vehicles and sold it to insurance companies, violating the privacy of Texas drivers.

The lawsuit marks the first legal action against a car manufacturer following the Attorney General’s investigation, which began in June, into several automakers suspected of mass data collection and illegal sales practices.

According to the lawsuit, GM utilized technology in its 2015 and later models to “collect, record, analyze, and transmit highly detailed driving data” every time a vehicle was used. The data was allegedly sold to third-party companies, including at least two firms that generated “Driving Scores” based on the collected information. These scores were then sold to insurance companies, which could use the data to assess drivers’ adherence to speed limits and other traffic laws.

While some insurance companies offer voluntary programs where customers can opt-in to share driving data in exchange for potential lower rates, the lawsuit claims that GM misled its customers. The automaker allegedly encouraged Texans to enroll in programs like OnStar Smart Driver without fully disclosing that their participation would lead to the collection and sale of their driving data.

“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,” the Attorney General’s office stated.

GM responded to the lawsuit, indicating that it had been in discussions with the Attorney General’s office and was reviewing the complaint. A GM spokesperson said, “We share the desire to protect consumers’ privacy.”

As the federal government lacks comprehensive modern data privacy and security laws, states like Texas are stepping in to regulate and protect consumers in the rapidly expanding data brokerage market. The outcome of this lawsuit could have significant implications for data privacy practices across the automotive industry.