General Motors Allegedly Selling Driver Data to Insurers on Risky Habits, Claims US News
General Motors is facing accusations of gathering data on drivers’ “bad” habits and selling it to insurers.
The state of Texas has filed a lawsuit against the car company, alleging that it implemented technology on over 14 million vehicles to gather data about drivers.
The lawsuit claims that GM, which produces brands like Chevrolet, Cadillac, and Buick, sold this data to insurers and other companies without obtaining drivers’ consent.
This data was allegedly used to create “driving scores” to determine if more than 1.8 million Texas drivers exhibited “bad” habits such as speeding, harsh braking, sharp turns, lack of seatbelt usage, and late-night driving.
The data collection technology, accessed through the company’s OnStar diagnostics system, was reportedly installed on most GM vehicles starting from the 2015 model year.
It remains unclear if this data was utilized to raise insurance premiums.
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Texas attorney general Ken Paxton disclosed that this information came to light during an investigation into whether various carmakers were collecting and selling large amounts of data without drivers’ awareness.
“Companies are utilizing invasive technology to infringe upon our citizens’ rights in unimaginable ways,” he stated.
“Our probe revealed that General Motors was engaged in egregious business practices that violated the privacy of Texans and breached the law. They will be held accountable.”
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The lawsuit is now seeking the disposal of improperly collected data, compensation for drivers, a civil penalty, and other remedies.
GM has not responded to requests for comments.
