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Home»Stock Market»Texas sues GM for allegedly violating drivers’ privacy By Reuters
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Texas sues GM for allegedly violating drivers’ privacy By Reuters

August 27, 2024No Comments2 Mins Read
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By Jonathan Stempel

(Reuters) – General Motors is facing a lawsuit from the state of Texas, alleging that the automaker installed technology on over 14 million vehicles to gather data about drivers, which was then sold to insurers and other companies without the drivers’ consent.

Texas Attorney General Ken Paxton announced the lawsuit on Tuesday, following an investigation launched in June to look into whether several automakers were collecting and selling large amounts of data without informing drivers.

Paxton claimed that GM used the collected data to create “Driving Scores” to evaluate the driving habits of more than 1.8 million Texas drivers, including behaviors such as speeding, harsh braking, sharp turns, seatbelt usage, and late-night driving.

Insurers reportedly utilized this data to make decisions on premiums, policy cancellations, or coverage denials.

The alleged technology was installed on most GM vehicles starting from the 2015 model year.

Paxton accused GM of pressuring consumers to enroll in its OnStar diagnostic products, which collected the data, by making them believe it was mandatory, right after they had completed the stressful car buying process.

“Companies are exploiting invasive technology to infringe on the rights of our citizens in unimaginable ways,” Paxton stated. “Our investigation uncovered that General Motors has engaged in unethical business practices that violated the privacy of Texans and violated the law. We will hold them accountable.”

GM responded in an emailed statement, saying: “We are in talks with the Attorney General’s office and are reviewing the complaint. We are committed to safeguarding consumers’ privacy.”

© Reuters. FILE PHOTO: The new GM logo is seen on the facade of the General Motors headquarters in Detroit, Michigan, U.S., March 16, 2021. Picture taken March 16, 2021. REUTERS/Rebecca Cook/File Photo

Texas filed the lawsuit in a state court in Montgomery County, near Houston, seeking the destruction of unlawfully collected data, compensation for drivers, civil fines, and other remedies for violations of the Texas Deceptive Trade Practices Act.

allegedly drivers privacy Reuters Sues Texas violating
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