Texas Legal Action Against Major Automaker Over Privacy Violations

Texas Legal Action Against Major Automaker Over Privacy Violations

The Texas legal system is now targeting General Motors, alleging that the company unlawfully sold driver data without permission.

At a Glance

  • Texas Attorney General Ken Paxton announced a lawsuit against General Motors (GM) for allegedly collecting and selling driver data without consent
  • The lawsuit claims GM installed technology in over 14 million vehicles to collect driver data without consent
  • The data was allegedly sold to insurers and other companies
  • Insurers could use this data to adjust premiums, cancel policies, or deny coverage
  • Texas seeks the destruction of improperly collected data, compensation for drivers, civil fines, and other remedies under the Texas Deceptive Trade Practices Act

Privacy at Risk: Texas vs General Motors

In a bold move against one of America’s largest automakers, Texas Attorney General Ken Paxton has launched a lawsuit alleging General Motors engaged in the nefarious practice of collecting and selling driver data without explicit consent. According to the lawsuit, GM installed covert technology in over 14 million vehicles, starting from the 2015 model year, to capture extensive driver information.

https://www.youtube.com/watch?v=IdKzPaTcXpc

This lawsuit, stemming from an investigation that began in June, reveals that millions of drivers, including 1.8 million Texans, had their data harvested and sold to third parties such as insurers and other companies. These vendors used the data to create “Driving Scores” that could impact insurance premiums and even lead to the cancellation of policies. Paxton states, “Companies are using invasive technology to violate the rights of our citizens in unthinkable ways.”

The Intricate Web of Data Sales

From the lawsuit, it’s clear that GM’s data collection practices were both stealthy and pervasive. Customers were led to believe that enrolling in OnStar diagnostic products—which collected the data—was mandatory for vehicle safety. In reality, this was a nuanced data-trap to gather and sell information. Texas’ complaint elaborates, stating the data was sold to companies like LexisNexis Risk Solutions, Verisk Analytics, and Wejo to calculate driving scores and sell the information to insurers.

“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,” Paxton emphasized.

As detailed in the complaint, these sales generated huge profits for GM, accrued through upfront payments and ongoing royalties from the data-consuming companies. The intricate tactics involved in this data collection are cited as largely deceptive, with customers misled during the sales process at GM dealerships.

The Road to Accountability and Justice

This lawsuit serves as a sharp reminder of the growing concerns surrounding data privacy. Attorney General Paxton has been firm in his resolve to hold GM accountable for these violations, seeking a jury trial and invoking fines of at least $10,000 per offense for every GM car sold in Texas since 2015. Additionally, $250,000 is sought for cases where the victim was over 65 years old. Texas doesn’t shy away from its pursuit of justice, having recently secured a $1.4 billion settlement from Meta over similar privacy issues.

GM, while currently in discussions with the Attorney General’s office, maintains that it shares the commitment to protecting consumer privacy. A G.M. spokeswoman reiterated this in an email, stating, “We share the desire to protect consumers’ privacy.”

The resolution of this lawsuit could set a precedent for the auto industry, emphasizing the importance of transparent, ethical data handling practices. It underscores that big corporations must be held accountable for intruding into consumers’ lives under the guise of innovation and connectivity.

Conclusion

As this legal battle continues, it’s a wake-up call for all corporations to rethink their data policies and respect the principles of privacy and consumer rights. With Texas leading the charge, we can only hope that stringent regulations will follow, ensuring a safer data landscape for all Americans.

“We will hold them accountable,” Paxton asserts, underscoring the gravity of the situation. The citizens of Texas and beyond await the outcome of this case, hopeful for justice and a safeguard of their privacy in the digital age.

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Sources

  1. Texas sues GM for allegedly violating drivers’ privacy
  2. Texas Sues GM for Allegedly Violating Drivers’ Privacy
  3. Texas Sues G.M. Over Collection and Selling of Driver Data
  4. Texas sues General Motors, alleging illegal selling of driver data
  5. Texas sues GM, saying it tricked customers into sharing driving data sold to insurers
  6. Texas sues General Motors for allegedly selling drivers’ data
  7. Texas sues General Motors, alleging illegal selling of driver data
  8. Texas sues General Motors, alleging illegal selling of driver data
  9. Texas Takes GM To Court Over Driver Data Sales

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