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Quick Hits:

1. Breach of Trust:GM allegedly sold detailed driving data from 14 million vehicles without drivers' consent, triggering a lawsuit from Texas.
2. Hidden Surveillance:The lawsuit claims GM misled consumers, collecting data through OnStar programs under false pretenses.
3. Privacy at Risk:Texas seeks to hold GM accountable, pushing for the destruction of data and compensation for impacted drivers

    

   By Samuel Lopez, USA Herald

   [TEXAS] - Texas Attorney General Ken Paxton has filed a lawsuit against GM, accusing the automaker of installing technology in over 14 million vehicles, starting from the 2015 model year, to collect detailed driving data without the drivers’ consent. This data was then allegedly sold to insurance companies and other third parties, raising serious concerns about consumer privacy.

   According to the lawsuit, GM used this technology to compile "Driving Scores" for more than 1.8 million Texas drivers. These scores, based on behaviors like speeding, hard braking, sharp steering, not wearing seatbelts, and nighttime driving, were then sold to insurance companies. The insurers, in turn, could use this information to decide whether to raise premiums, cancel policies, or deny coverage altogether. For Texas drivers, this means that their everyday driving habits—unbeknownst to them—could be used against them in the insurance marketplace.

   The legal action, filed in Montgomery County, near Houston, is a direct response to these alleged violations of Texans' privacy rights. The Attorney General’s office has described GM's actions as not only unethical but also illegal under the Texas Deceptive Trade Practices Act. The lawsuit seeks the destruction of all improperly collected data, compensation for the affected drivers, and civil penalties to deter future violations.

   GM has responded to these serious allegations, stating that they are in discussions with the Attorney General's office and are currently reviewing the complaint. However, the company’s reassurance might do little to rebuild the trust that may have been shattered by these revelations.

   The heart of this issue lies in the alleged deception surrounding GM's OnStar diagnostic products. The lawsuit claims that GM misled consumers into believing that enrolling in OnStar programs was a mandatory step when purchasing or leasing a vehicle. By agreeing to these programs, drivers unknowingly consented to the collection and sale of their data. The complexity and obscurity of GM’s disclosures only served to deepen the deception, making it difficult for customers to understand what they were truly signing up for.

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   TAGS data privacydriving datageneral motorsinsurance companiesLegal newsTexas lawsuit