Texas Sues General Motors Over Alleged Illegal Sale of Driver Data

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Texas Attorney General Ken Paxton has filed a lawsuit against General Motors, accusing the automaker of unlawfully collecting and selling drivers’ data to insurance companies without their consent or knowledge. This legal action marks the first lawsuit against a car manufacturer following an investigation launched by the AG’s office in June into the data practices of several automakers.

The lawsuit alleges that General Motors used technology in vehicles from 2015 onward to gather, record, analyze, and transmit detailed driving data. According to the Attorney General’s office, GM sold this data to various companies, including at least two firms that generated “Driving Scores” which were then sold to insurance companies.

Insurance firms use such data to assess driving behavior, which can affect insurance rates. However, the AG’s office claims GM misled its Texas customers by promoting programs like OnStar Smart Driver while secretly allowing their data to be collected and sold.

A GM spokesperson responded by stating the company is reviewing the complaint and shares the goal of protecting consumer privacy. The lawsuit highlights the growing concern over data privacy, with states increasingly stepping in to address gaps in federal regulations.

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I’m a finance writer with  three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.

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