The state of Texas filed a lawsuit against General Motors, accusing the company of installing technology in more than 14 million vehicles that collected driver data and sold it to insurance companies and other companies without their consent.
CNBC Reports Texas Attorney General Ken Paxton announced this week that the lawsuit stems from an investigation that began in June looking into whether automakers collected and sold vast amounts of data on drivers without their knowledge. The investigation uncovered allegations that GM had installed data-collection technology in most of its vehicles, beginning with the 2015 model year.
Paxton said the data GM collected was used to create a “driving score” that assessed the driving habits of more than 1.8 million drivers in Texas. These scores took into account factors such as speeding, hard braking, hard steering, seat belt use and late-night driving. There are concerns that insurers could use this data to decide to raise premiums, cancel policies or deny coverage altogether.
The lawsuit alleges that GM’s practice involved dealers misleading unsuspecting consumers into believing that registering for the data-collecting OnStar diagnostic product was mandatory, often shortly after stressful purchasing and leasing processes when consumers were at a more vulnerable stage.
Paxton expressed outrage at the situation, saying, “Companies are using invasive technology to violate people’s rights in unthinkable ways. Our investigation revealed that General Motors violated the privacy of Texans and engaged in egregious business practices that violated the law. We will hold them accountable.”
GM responded to the lawsuit by saying it was in discussions with the attorney general’s office and was currently reviewing its complaint, adding that the company “shares our commitment to protecting consumer privacy.”
The lawsuit, filed in state court in Montgomery County near Houston, seeks the destruction of the improperly collected data, compensation for affected drivers, civil penalties and other relief for violations of the Texas Unfair Trade Practices Act.
This is not an isolated incident: Breitbart News previously reported that several other automakers, including Honda, Kia and Hyundai, secretly collect extensive information about their customers’ driving habits and share it with insurers and data brokers. The report featured the story of Ken Dahl, a Seattle software company owner who saw his car insurance premiums increase by 21 percent despite being a careful driver with no accident history.
Upon requesting a LexisNexis consumer report, Dahl found 258 pages of documents detailing more than 640 trips he and his wife had taken in their Chevrolet Bolt.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship.
