Texas sues General Motors for violating customer privacy

The Texas Attorney General has filed a lawsuit against General Motors accusing the company of unethical business practices

Texas Attorney General Ken Paxton has filed a lawsuit against General Motors (GM), accusing the company of false, deceptive, and misleading business practices related to the illegal collection and sale of private driving data. This lawsuit affects over 1.5 million Texans who, according to the complaint, had their driving data sold to insurance companies without their knowledge or consent.

The legal action follows an investigation announced by Attorney General Paxton in June 2024, which addressed allegations that several car manufacturers had collected large amounts of driver data directly from vehicles and then sold this information to third parties.

The Attorney General stated that the investigation has revealed that General Motors engaged in business practices that violate the privacy of Texas citizens, infringing on the law. “We will hold them accountable,” he said. He also pointed out that companies are using invasive technology that infringes on citizens’ rights in unimaginable ways. According to the Attorney General, millions of drivers who have purchased these vehicles have been exposed to an integrated surveillance system that illegally records information about each trip made with the cars, and then sells this data to companies willing to pay for it.

Privacy and data security: did GM deceive its customers?

The complaint alleges that General Motors used technology installed in most of its 2015 and newer models to collect, record, analyze, and transmit detailed driving data every time a driver uses their vehicle. This data was sold to various companies to generate “Driving Scores” about General Motors customers, which were then sold to insurance companies. The complaint claims that GM deceived many of its customers by forcing them to sign up for products like OnStar Smart Driver during the vehicle purchase process under the false premise that, if they did not, the vehicle’s safety features would be disabled. However, by enrolling, customers were agreeing to the collection and sale of their data without being properly informed of this practice.

This investigation is part of a broader initiative by Attorney General Paxton to protect data privacy and security, launched in June 2024, with the goal of ensuring that companies respect the privacy rights of Texans and comply with data protection laws.

The Texas case also adds to at least two lawsuits filed directly by consumers, including a class action in April of this year, which address the same issues related to data collection and sales by General Motors.