Texas Sues General Motors for Collecting, Selling Driver Data Without Consent

Aug. 19, 2024
Actions such as speeding, abrupt braking, sharp turns, not using seatbelts, and driving late at night have been allegedly collected and shared with insurance companies.

General Motors is being sued by the state of Texas over claims the automaker has been illegally collecting and sharing data from drivers’ vehicles, reports Reuters.

Following an investigation launched in June into how automakers were collecting and sharing data, the state said it discovered GM had installed technology on over 14 million vehicles that was tracking driver behavior, without the vehicle owner’s knowledge.

Actions such as speeding, abrupt braking, sharp turns, not using seatbelts, and driving late at night would be collected by GM and shared with insurance companies, who in turn used the data to justify raising premiums, cancel policies, or deny coverage.

Customers unknowingly signed on to have the technology installed at dealerships while purchasing a vehicle. While purchasing or leasing a vehicle from a dealership, customers were told that enrolling in OnStar was not optional–which, they were not told, would also sign them up to be tracked.

The accusation alleges that this technology was installed on most GM vehicles from model year 2015 onwards, and that the company is in violation of the Texas Deceptive Trade Practices Act. 

The state is seeking that all data collected illegally by destroyed, that the drivers receive compensation, and for civil fines to be paid by GM.

“Companies are using invasive technology to violate the rights of our citizens in unthinkable ways,” Texas Attorney General Ken Paxton stated. “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.”

About the Author

Ratchet+Wrench Staff Reporters

The Ratchet+Wrench staff reporters have a combined two-plus decades of journalism and mechanical repair experience.

Sponsored Recommendations

Valvoline Partner Solutions

We arm you with products that build trust, tools that unlock productivity, and training that drives business performance, so you feel confident in where your...

Grow the business you know

Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube.

Solutions that drive results

Connect with Valvoline experts to increase operational efficiency and customer loyalty – from Valvoline-funded promotions to hands-on training, we’re here to...

Free Resources for Shops Like Yours

View insights, research and solutions curated specifically for shops like yours.