- AG Ken Paxton sued GM for unlawfully selling the driving data of 1.8 million Texans.
- This class action stems from an investigation into several automakers initiated in June 2024.
- GM accused of selling data to 3rd parties, potentially affecting customer insurance rates.
Texas Attorney General Ken Paxton has filed a lawsuit against General Motors, accusing the automaker of secretly collecting and selling customers’ private driving data without their knowledge or consent. This legal action follows an investigation into several automakers, highlighting serious concerns about consumer privacy violations in the automotive industry.
The automaker is accused of selling customer information to “several other companies,” including data brokerage firms. According to the class action, at least two of these firms generated “Driving Scores,” which were then sold to insurance companies. These scores could be used by insurers to decide whether to increase rates or even deny coverage to “bad drivers.”
More: Senators Want FTC To Investigate Automakers That Sell Our Data
The Attorney General’s office stated that General Motors unlawfully collected and sold the private driving data of “over 1.8 million Texans” using technology embedded in most of its vehicles since the 2015 model year.
GM customers were allegedly misled into believing that the “OnStar SmartDriver” program was essential for activating their vehicle’s safety features. Through “lengthy and detailed disclosures,” customers unknowingly consented to GM’s collection and sale of their data, without being fully informed about the implications of the so-called “Driving Scores.”
The driving data collected from over 14 million GM vehicles—including more than 1.8 million in Texas—included details such as the “date, start time, end time, vehicle speed, driver and passenger seatbelt status, and distance driven.” Factors contributing to a bad driving score included late-night driving, sharp turns, hard acceleration or braking, failure to wear a seatbelt, and driving at speeds over 80 mph (129 km/h).
Attorney General Paxton stated, “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. Companies are using invasive technology to violate the rights of our citizens in unthinkable ways. 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.”
The investigation in Texas was opened in June 2024, following a series of allegations about automakers’ improper collection and sale of mass amounts of driving data. While GM is the first company to be sued in Texas, Hyundai and Kia have also been the subject of a similar class action lawsuit, which was recently filed in California.
