Texas Attorney General Ken Paxton is suing General Motors (GM), accusing the automaker of illegally collecting and selling drivers’ data. Paxton announced the lawsuit on Tuesday, following an investigation into these practices, according to a statement from his office.
The investigation reportedly revealed that General Motors engaged in “egregious business practices” that violated Texans’ privacy and broke the law. “We will hold them accountable,” Paxton said. He emphasized that companies are using invasive technology to violate citizens’ rights, adding that “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.”
The lawsuit alleges that GM used technology installed in most 2015 model year or newer vehicles to collect, record, analyze, and transmit detailed driving data every time a driver used their vehicle. According to the complaint, GM sold this information to various companies, including at least two that used the data to generate “Driving Scores” which were then sold to insurance companies.
Paxton’s office claims that GM sold this data under the false pretense that drivers had consented to the collection, use, and sale of their driving data. The lawsuit also accuses GM of deceiving customers by falsely stating that certain vehicle safety features would not function unless they enrolled in specific GM programs, such as OnStar Smart Driver.
In reality, by enrolling, customers were unknowingly agreeing to GM’s collection and sale of their data. The attorney general’s office argues that GM failed to adequately inform customers of its practices, despite lengthy and convoluted disclosures.
A GM spokesperson responded to the lawsuit, stating that the company has been in discussions with the Attorney General’s office and is reviewing the complaint. “We share the desire to protect consumers’ privacy,” the spokesperson said.
This lawsuit comes as states increasingly take the lead in protecting consumer privacy in the absence of comprehensive federal data privacy laws. Paxton, who recently survived an impeachment attempt, suggests he may face further challenges, accusing the “Republican establishment” of collaborating with Biden administration lawyers against him.
In related news, Ford Motors is reportedly seeking a patent for a device that could raise privacy concerns by detecting whether other cars on the road are exceeding the speed limit and transmitting this data to local police.