BREAKING: Paxton announces lawsuit against GM for selling drivers’ data

This is a step in the right direction by AG Paxton. GM and other auto makers have got to stop spying on drivers. It’s a violation of our 4th amendment rights. Ford Motor Company is trying to patent snitch technology that will rat you out to law enforcement for speeding violations. These auto makers are clearly unconstitutionally spying on drivers, collecting and selling their information, including colluding with insurance companies who are already charging such exorbitant insurance rates most young drivers have no chance of driving, getting themselves to/from work, and living independent lives.

Ask parents if they have the time to shuttle their teens to/from their jobs, every practice, music lesson, or other activity (especially when several of these things conflict with their siblings’ pick-up times or the parents’ work obligations)? The answer is ‘no.’ Making driving unaffordable and stealing all your rights to do so, has no place in a free society or in an economically flourishing one. Auto makers and insurance companies are shooting themselves in the foot to continue down this path. Ultimately, fewer drivers means less revenue for them.

FOR IMMEDIATE RELEASE

Attorney General Ken Paxton Sues General Motors for Unlawfully Collecting Drivers’ Private Data and Selling It To Several Companies, Including Insurance Companies

AUSTIN, August 13, 2024 – Texas Attorney General Ken Paxton sued General Motors for its false, deceptive, and misleading business practices related to its unlawful collection and sale of over 1.5 million Texans’ private driving data to insurance companies without their knowledge or consent.

This action follows Attorney General Paxton’s June 2024 announcement that he opened an investigation into several car manufacturers regarding allegations that the companies had improperly collected mass amounts of data about drivers directly from the vehicles and then sold the information to third parties.

“Our investigation revealed that General Motors has engaged in egregious business practices that violated Texans’ privacy and broke the law. We will hold them accountable,” said Attorney General Paxton. “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.”

General Motors used technology installed in most 2015 model year or newer GM vehicles to collect, record, analyze, and transmit highly detailed driving data about each time a driver used their vehicle. General Motors sold this information to several other companies, including to at least two companies for the purpose of generating “Driving Scores” about GM’s customers and selling these scores to insurance companies. General Motors deceived many of its customers when it compelled them to enroll in its products, including OnStar Smart Driver, as part of its vehicle “onboarding” process and told them that failing to enroll would result in the deactivation of their vehicle’s safety features. Unbeknownst to customers, however, by enrolling in GM’s products, they were “agreeing” to General Motors’ collection and sale of their data. 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 investigation was part of a broad data privacy and security initiative launched by Attorney General Paxton in June 2024 to ensure that companies respect Texans’ privacy rights and enforce privacy protection laws.

To read the filing, click here.

###