FOLLOW US

America June 7, 2024 3 mins read

Texas AG Investigates Car Manufacturers Over Data Privacy Concerns

America ı By Rochdi Rais

0 Comments

Car Manufacturers Data Privacy suit

AUSTIN, Texas — Texas Attorney General Ken Paxton has initiated an investigation into car manufacturers over their data collection and sharing practices, focusing on whether they are selling drivers' data to third parties, including insurance providers, without proper disclosure. This move marks the latest effort by state authorities to address growing concerns over data privacy in the automotive industry.

Paxton announced Thursday that his office has directed several car manufacturers and their business partners to produce documents detailing their data collection and sharing activities, as well as the extent to which they inform customers about these practices. The companies under investigation were not disclosed.

"The technology in modern vehicles enables manufacturers to collect millions of data points about the people driving them," Paxton said. "Recently, consumers have grown extremely concerned that their driving data is being reported to their insurance company without their knowledge or authorization. These reports of the invasive and unmitigated collection and sale of data without consumer consent are disturbing, and they merit a thorough investigation and appropriate enforcement."

The investigation is being conducted under the Texas Deceptive Trade Practices Act, which allows the attorney general to pursue companies engaged in false, misleading, or deceptive practices. Paxton's inquiry follows his recent announcement of a new team within his consumer protection division dedicated to enforcing the state's data privacy laws, including the forthcoming Data Privacy and Security Act, set to take effect on July 1.

This new team, described by Paxton as "one of the largest in the country focused on enforcing privacy laws," will oversee the enforcement of various state data protection regulations, including the Biometric Identifier Act and the Deceptive Trade Practices Act.

The investigation was sparked by reports that car manufacturers have been secretly collecting extensive data from drivers through their vehicles and selling this information to insurers and other companies without customer consent. General Motors (GM) has faced several proposed class actions alleging that it used its OnStar units to collect driver data and passed it on to data broker LexisNexis Risk Solutions, which then sold it to insurers.

A New York Times report in March highlighted that GM's data sharing through OnStar's Smart Driver app led to higher auto insurance premiums for some individuals. In response, GM announced in April that it would discontinue the Smart Driver program and unenroll customers over the coming months.

"Customer trust is very important to us, which is why we are taking decisive actions to enhance our privacy processes and policies," a GM spokesperson said.

The automotive data privacy issue has also drawn attention from other state and federal authorities. Last August, California's privacy agency began investigating connected-car manufacturers' data collection and disclosure practices. Similarly, Connecticut's attorney general is scrutinizing these practices, and the U.S. Department of Commerce is considering regulations to address data privacy and security risks posed by imported vehicles with advanced data systems.

Consumer advocacy groups have echoed these concerns. A report from the Mozilla Foundation described modern vehicles as "a privacy nightmare," prompting congressional inquiries. Sen. Edward Markey, D-Mass., has called for automakers to implement stronger privacy policies and urged the Federal Trade Commission to investigate the industry's data practices.

"Consumers should not be subject to a massive data collection apparatus, with any disclosures hidden in pages-long privacy policies filled with legalese," Markey said. "The auto industry cannot become yet another domain that tracks and targets consumers."

Paxton's investigation underscores the increasing scrutiny on car manufacturers' data practices and the broader push for stronger data privacy protections across various industries.

Previous Article

NFL Faces Antitrust Trial Over Sunday Ticket Pricing

Read More
2772 Posts

Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America September 11, 2026
$LAPTOP Meme Coin Crashes After Hunter Biden Launches Cryptocurrency
By – Jackie Allen
America September 11, 2026
Silverthorne Bomb Threat Triggers Evacuations, School Transport Chaos
By – Rihem Akkouche
America September 11, 2026
Arrow Bank to Acquire Skene Valley in Upstate New York Insurance Deal
By – Rihem Akkouche
America September 11, 2026
Tenet Health 1,500 Layoffs Ripple Across North Texas Job Market
By – Rihem Akkouche
America September 11, 2026
Bears and RB Swift $33.75M Extension Locks In Backfield Anchor
By – Tyler Brooks
America September 11, 2026
Ryan Ryan $60M Malpractice Lawsuit Accuses…

Sometimes the most expensive mistake isn’t what a lawyer says…

By – Tyler Brooks
America September 11, 2026
Cooley, Investor Malpractice Suit Settlement Closes…

Startups often promise disruption — a fresh spin on an…

By – Tyler Brooks
America September 11, 2026
Conduent Data Breach Claims Settlement Ends…

A data breach is bad enough on its own —…

By – Tyler Brooks
America September 11, 2026
Skywatcher: ExoMoon Discovery May Reveal First…

An ExoMoon discovery may have given astronomers their first confirmed…

By – Jackie Allen
America September 11, 2026
Skywatchers: Moonshadow Creates Dramatic Blood Moon…

A Moonshadow transformed the night sky Aug. 27 as the…

By – Jackie Allen
America September 11, 2026
Josh Hawley Opens OpenAI Investigation Over…

Key Takeaways Josh Hawley is demanding answers and internal records…

By – Samuel Lopez
America September 11, 2026
Josh Hawley Opens OpenAI Investigation Over…

Key Takeaways Josh Hawley is demanding answers and internal records…

By – Samuel Lopez
America September 11, 2026
Congress Has Seen the Evidence on…

Key Takeaways Lawmakers with security clearances, including Rep. Nancy Mace,…

By – Samuel Lopez
America September 11, 2026
Mexican Food Company Announces California Layoffs…

Key Takeaways Ruiz Foods is cutting 176 jobs at its…

By – Samuel Lopez
America September 11, 2026
Sam Bankman-Fried Seeks Supreme Court Review…

By Samuel López | USA Herald Sam Bankman-Fried is taking…

By – Samuel Lopez
America September 11, 2026
5th Circuit Vacates $125M Award Over…

Key Takeaways A divided Fifth Circuit upheld relief from a…

By – Samuel Lopez
America September 10, 2026
41% of Lawyers Say Legal Careers…

Key Takeaways More than 41% of surveyed lawyers say the…

By – Samuel Lopez
America September 10, 2026
Flock Safety Cracks Down on Police…

Flock Safety is introducing mandatory safeguards for its automated license-plate…

By – Jackie Allen
America September 10, 2026
OpenAI Cybersecurity Under Scrutiny After AI…

OpenAI cybersecurity concerns are growing after researchers reported that a…

By – Jackie Allen
America September 9, 2026
To Catch a Predator: Robert Pattinson…

The phrase Catch a Predator became synonymous with one of…

By – Jackie Allen
America September 8, 2026
Trump-a-Palooza: Republicans Put Trump at Center…

DALLAS — Trump-a-Palooza is bringing Republicans from across the country…

By – Jackie Allen
America September 8, 2026
Iranian Twins Face Death Sentence and…

Iranian twins Taraneh and Romina Rahimi, 20, are facing drastically…

By – Jackie Allen
America September 8, 2026
AI Amnesia: Bigger Diffusion Models May…

AI Amnesia may be an emerging problem for researchers, artists…

By – Jackie Allen
America September 10, 2026
Michael Jackson Accuser James Safechuck and…

Key Takeaways James Safechuck is reportedly scheduled for questioning September…

By – Samuel Lopez
America September 10, 2026
Latham Buys Nvidia Servers to Power…

Most law firms borrow their horsepower — leasing AI tools…

By – Rihem Akkouche
America September 10, 2026
PGR Filed for Bankruptcy as Solar…

Solar power promises endless energy from an endless source —…

By – Rihem Akkouche
America September 10, 2026
Frazier $1.1B Public Fund Signals Fresh…

When investors line up not just to meet a funding…

By – Tyler Brooks
America September 10, 2026
Enbridge-Tallgrass Crude Oil Deal Locks In…

In the world of energy infrastructure, growth often looks less…

By – Tyler Brooks
America September 10, 2026
Brian Duckworth Death Silences a Voice…

Some voices carry further than the rooms they’re born in.…

By – Tyler Brooks
America September 10, 2026
Wrongful Death Lawsuit Against Energy Drink…

Key takeaways The latest reported order paused the family’s lawsuit…

By – Samuel Lopez
America September 9, 2026
Ambient AI Could Be the Next…

Key Takeaways Ambient AI can turn conversations into draft records,…

By – Samuel Lopez
America September 5, 2026
Georgian National Indicted in Money Laundering…

By Samuel López | USA Herald A federal grand jury…

By – Samuel Lopez
America September 1, 2026
DOJ Drops Hammer On Kansas School…

By Samuel López | USA Herald The U.S. Department of…

By – Samuel Lopez
America August 28, 2026
CVS Ordered to Answer for AI-Fueled…

Case at a Glance A Manhattan federal judge has ruled…

By – Samuel Lopez
Breaking News August 27, 2026
Sacred Horse Year Pilgrimage Turns Catastrophic…

A Disaster Unfolding in Real Time, Legal and Diplomatic Fallout…

By – Samuel Lopez
America September 6, 2026
Travis Kelce-Backed Club Car Wash Faces…

By Samuel López | USA Herald A fast-growing car wash…

By – Samuel Lopez
America September 6, 2026
‘DWTS’ Gleb Savchenko Lists $1.4 Million…

By Samuel López | USA Herald Factual Background Gleb Savchenko…

By – Samuel Lopez
America September 4, 2026
Trump Calls Tiger Woods DUI Plea…

In This Report Tiger Woods accepted reduced charges and surrendered…

By – Samuel Lopez
America September 2, 2026
Clippers Fined $30M as NBA Drops…

A year-long investigation just landed on the Los Angeles Clippers…

By – Rihem Akkouche
America August 26, 2026
Tupac Shakur Murder Trial Moves to…

The Tupac Shakur murder trial will resume Thursday in Las…

By – Jackie Allen
America August 21, 2026
World Cup Brawl Leads to Major…

EAST RUTHERFORD, N.J. — The World Cup final between Spain…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter