General Motors is under legal fire from the Texas Attorney General's office for allegedly selling driver data from more than 14 million vehicles, including the data of more than 1.8 million Texans, to third-party companies without customer consent.
The lawsuit, filed in a state court near Houston, accuses GM of violating the Texas Deceptive Trade Practices Act by misrepresenting its products and the use of customer driving data.
According to the lawsuit, GM and its OnStar LLC subsidiary collected data that included driving habits, seat belt usage and even radio listening preferences. This information was then sold to companies that calculated "driving scores" used by auto insurers to determine premiums or decide on coverage options. The lawsuit alleges GM did not disclose these practices to customers, effectively turning their vehicles into "comprehensive surveillance systems."
"Millions of American drivers wanted to buy a car, not a comprehensive surveillance system that unlawfully records information about every drive they take and sells their data to any company willing to pay for it," said Texas Attorney General Ken Paxton in a statement announcing the suit.
In response to the lawsuit, a GM spokesperson stated the company is reviewing the complaint and emphasized GM's commitment to consumer privacy, adding that discussions have been held with the Texas AG's office.
The Texas Attorney General's investigation began in June, focusing on the broader issue of automakers' collection and use of customer data. The lawsuit identifies several contracts GM signed since 2015 with companies like Verisk Analytics and Wejo Ltd, where driving data was sold and used to create driving behavior scores.
GM is a defendant in several class action lawsuits across the country, filed since it came to light earlier this year it was selling driver data collected by OnStar and its related brand apps to LexisNexis Risk Solutions and Verisk -- both named as defendants in the lawsuits as well -- which in turn shared it with drivers’ insurance companies, leading to a hike in the drivers’ auto insurance premiums.
In July, U.S. Sens. Ron Wyden, D-OR, and Edward Markey, D-MA, wrote a letter urging the Federal Trade Commission to investigate automakers' data disclosure practices.
