Texas sues General Motors for allegedly unlawfully selling drivers' data

Texas Attorney General Ken Paxton on Tuesday sued General Motors for allegedly unlawfully collecting driving data from users and selling it to other companies.

Paxton's office brought the legal action after an investigation in June found that the car company allegedly used technology that was installed in the majority of 2015 or newer General Motors vehicles that would "collect, record, analyze, and transmit highly detailed driving data about each time a driver used their vehicle,” according to a press release. 

The data was then sold to several companies, which were not aware that the drivers had not consented to the data being collected, used, or sold. 

"General Motors has engaged in egregious business practices that violated Texans’ privacy and broke the law," Paxton said in a statement. "We will hold them accountable. Companies are using invasive technology to violate the rights of our citizens in unthinkable ways. 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's office said that customers were asked to enroll in several General Motors programs, including the OnStar Smart Driver, and were allegedly warned that their vehicle’s safety features would be deactivated if they failed to enroll in the  products.

“Unbeknownst to customers, however, by enrolling in GM’s products, they were ‘agreeing’ to General Motors’ collection and sale of their data," Paxton’s office said. "Despite lengthy and convoluted disclosures, General Motors never informed its customers of its actual conduct — the systematic collection and sale of their highly detailed driving data."

The data was then used by companies to assign risk scores to drivers that would affect their insurance rates without their consent or knowledge, according to Politico.

“We’ve been in discussions with the Attorney General’s office and are reviewing the complaint. We share the desire to protect consumers’ privacy,” a General Motors spokesperson told the outlet.

Misty Severi is an evening news reporter for Just The News. You can follow her on X for more coverage.