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You don’t mess with Texas and General Motors could be learning that the hard way. Allegedly, General Motors has been stealing private data from drivers and selling it to insurance companies, so Texas is suing. 

Texas sues General Motors due to stealing driver data 

What happens when cars no longer provide privacy? Many people trust their vehicles as a safe place to relax, unwind, and be themselves. 

However, automakers like General Motors could be watching drivers and collecting personal data to sell to insurance companies. That’s why Texas is suing GM. 

Texas claims that GM has false, deceptive, and misleading practices that led to the sale of over 1.8 million driver’s personal data to insurance companies. 

Allegedly, GM has been installing tech in its cars since 2015 that allows it to collect and report detailed data every time a driver uses their vehicle. It’s collected via the OnStar Smart Driver feature. 

The data may include each time drivers got behind the wheel, how fast they were going, their travel distance, how long the engine was running, if seatbelts were enabled, and more. 

Then General Motors sold that data to car insurance firms. Reportedly, the insurance companies believed that drivers provided their consent. 

The 2024 GMC Yukon on a gravel road
2024 GMC Yukon | GMC

However, the lawsuit claims that GM gained consent via deceptive acts and never informed drivers that their information would be sold. Plus, insurance companies may have used the information to raise rates without letting the drivers know. 

This violates the Texas Deceptive Trade Practice Act which protects customers from misleading business practices. 

The lawsuit is after civil penalties, the destruction of all driver data collected and sold by GM, and full restitution for all impacted owners across Chevrolet, GMC, Buick, Cadillac, and more. 

GM could have agreements with third-party companies such as LexisNexis, Verisk, Wejo, and Jacob’s Engineer Group to access and sell data. 

Allegedly. Honda sold data for Verisk for $25,920, Hyundai sold data from 1.7 million vehicles to Verisk for $1.04 million, and GM benefits from an annual revenue in the low millions. 

It looks like GM may not be alone in this sultry practice. Stay tuned for updates.