Texas sues General Motors, says it illegally collected and sold driver data

TEXAS ATTORNEY GENERAL KEN PAXTON IS SUING ONE OF THE NATION’S LARGEST AUTOMAKERS – AFTER HE SAYS IT WAS ILLEGALLY COLLECTING AND SELLING DRIVERS’ DATA.

PAXTON IS ACCUSING GENERAL MOTORS OF SELLING THAT DATA TO INSURANCE COMPANIES WITHOUT DRIVERS’ CONSENT OR KNOWLEDGE.

G-M IS THE FIRST CAR MANUFACTURER TO BE HIT WITH A LAWSUIT AFTER THE ATTORNEY GENERAL’S OFFICE OPENED AN INVESTIGATION INTO SEVERAL MANUFACTURERS IN JUNE. 

THE LAWSUIT ALLEGES G-M INSTALLED TECHNOLOGY IN MORE THAN 14 MILLION VEHICLES. 

THIS ALLOWED THE COMPANY TO COMPILE “DRIVING SCORES” – ASSESSING WHETHER NEARLY TWO MILLION TEXAS DRIVERS HAD SO-CALLED “BAD” HABITS.

THOSE INCLUDE SPEEDING, BRAKING TOO FAST, STEERING TOO SHARPLY INTO TURNS, NOT USING SEATBELTS, AND DRIVING LATE AT NIGHT. 

PAXTON SAID INSURERS COULD THEN USE THE DATA WHEN DECIDING WHETHER TO RAISE PREMIUMS, CANCEL POLICIES OR DENY COVERAGE. 

THE A-G- CLAIMS THE TECHNOLOGY WAS INSTALLED ON MOST G-M VEHICLES STARTING WITH THE 20-15 MODEL YEAR. 

G-M WAS ALREADY FACING DATA PRIVACY CONCERNS – AFTER THE NEW YORK TIMES REPORTED IN MARCH THE COMPANY SHARED DRIVERS’ DATA WITH DATA BROKERS… WHO THEN GAVE THAT INFORMATION TO INSURANCE COMPANIES. 

THE TEXAS LAWSUIT CALLS FOR THE DESTRUCTION OF IMPROPERLY COLLECTED DATA, COMPENSATION FOR DRIVERS, CIVIL FINES, AND OTHER REMEDIES FOR VIOLATIONS OF THE TEXAS DECEPTIVE TRADE PRACTICES ACT.