The Texas Attorney General’s Office has filed a lawsuit against General Motors. The automaker is allegedly illegally collecting driving data from 1.5 million Texans and selling this information to insurance companies without the consent of the car owners.
In June, the Texas Attorney General began investigating several automakers for collecting large amounts of driver data from GM vehicles to sell to third parties, including insurance companies.
The investigation found that GM used technology from 2015 and newer model year vehicles to collect, record, analyze and transmit highly detailed driving data. The company then sold this information about its customers to companies. Two of the third parties used the data to create “driver ratings.”
Calls for improved safety for increasingly connected vehicles have grown louder in recent years, but GM is now the first company to be sued in the state of Texas. The attorney general’s office said it began its investigation into GM earlier this year.
Cars that travel more than just kilometers
Nissan North America informed customers in May that personal information of current and former employees had been lost in a ransomware attack, while customer data of BMW dealerships in Hong Kong had been compromised in a break-in by a third-party contractor.
Reuters reported in 2023 that private camera recordings from Tesla vehicles were shared in internal messaging systems among Tesla Inc. employees. These included accidents, incidents of road rage, and even a video of a Tesla hitting a child riding a bicycle.
Voluntary enrollment is mandatory
The Texas Attorney General’s Office said in its complaint that GM deceived its customers by forcing them to sign up for its products, such as OnStar Smart Driver, as part of the vehicle’s “onboarding” process. Otherwise, their vehicle’s safety features would be disabled. By signing up for the products, customers unwittingly agreed to the collection and sale of their data.
“Our investigation found that General Motors engaged in egregious business practices that violated Texans’ privacy and the law. We will hold them accountable,” Attorney General Ken Paxton said in an Aug. 13 statement announcing the legal action. “Companies are using invasive technology to violate the rights of our citizens in unimaginable ways. Millions of American drivers wanted to buy a car, not a comprehensive surveillance system that unlawfully records information about their every trip and sells their data to any company willing to pay for it.”
The state’s Attorney General’s Office launched a privacy and security initiative in June to vigorously enforce Texas’ privacy laws.
