Texas Attorney General Sues General Motors Over Unlawful Data Collection and Sale of Drivers’ Private Information
Texas Attorney General Ken Paxton has taken legal action against General Motors (“GM”) for allegedly collecting and selling over 1.5 million Texans' private driving data without their knowledge or consent. The lawsuit accuses GM of engaging in deceptive business practices by unlawfully gathering detailed driving information from its vehicles and then selling it to several third-party companies, including insurance firms.
This lawsuit follows a broader investigation initiated by Paxton in June 2024 into various car manufacturers suspected of collecting massive amounts of data directly from vehicles and selling it to third-parties. Paxton has made it clear that his office intends to hold GM accountable for what he describes as an egregious violation of Texans’ privacy rights.
The core of the issue lies in GM's use of technology installed in most 2015 model year and newer vehicles. This technology, which includes systems like OnStar, was reportedly designed to collect, record, and transmit highly detailed data on driving habits every time a driver used their vehicle. Unbeknownst to many consumers, GM then sold this data to other companies, including at least two firms that used it to generate "Driving Scores" which were subsequently sold to insurance companies.
The lawsuit also highlights GM’s deceptive enrollment tactics. Customers were often coerced into signing up for GM’s products, such as the OnStar Smart Driver program, under the false pretense that opting out would result in the deactivation of essential vehicle safety features. By enrolling, drivers inadvertently agreed to GM’s collection and sale of their driving data, despite the fact that GM’s disclosures about its data practices were lengthy, complicated, and unclear.
This legal action is part of a broader effort by Paxton’s office to ensure that companies operating in Texas respect consumer privacy rights and comply with state laws designed to protect personal data. Paxton emphasized that millions of drivers did not purchase a car with the expectation that they would become part of a surveillance system that records and sells their driving habits to the highest bidder.
For businesses, this case is a reminder of the growing scrutiny surrounding data privacy practices, especially when it comes to the collection and sale of personal information without clear consent. As consumer data becomes an increasingly valuable commodity, companies must be transparent about their data collection practices and ensure they comply with state and federal privacy laws to avoid legal consequences and damage to their reputation.
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This article is for information purposes only. It is not intended to be and should not be relied on as legal advice for any particular matter.