In a bold legal move, the state of Texas has filed a lawsuit against General Motors (G.M.), accusing the automotive giant of unlawfully collecting and selling detailed driving data from millions of drivers without their consent. This lawsuit, spearheaded by Texas Attorney General Ken Paxton, marks a significant escalation in the ongoing debate over consumer privacy in the digital age.
According to the complaint, G.M. and its OnStar subsidiary have been collecting data from approximately 16 million drivers, including start and end times of trips, instances of hard braking, and speeding behaviors. The data was then sold to third-party vendors, including LexisNexis Risk Solutions and Verisk Analytics, who used the information to calculate driving scores and sold these scores to insurance companies. The result? Many unsuspecting drivers saw their insurance premiums spike based on data they were unaware had been collected, let alone shared.
“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,” stated Paxton, reflecting the growing concern over the encroachment of data collection into every aspect of modern life.
General Motors, which had been in discussions with the attorney general’s office, expressed a shared interest in protecting consumer privacy but stopped short of admitting any wrongdoing. The company has been reviewing the complaint and stated that it halted the sharing of such data with brokers in March, shortly after investigative reporting by The New York Times brought the practice to light.
The Legal and Ethical Implications
The lawsuit against General Motors is the latest chapter in a broader story of how modern businesses collect and utilize consumer data, often without clear consent. The complaint filed by Texas alleges that customers were unwittingly enrolled in G.M.’s data collection program through misleading sales practices at dealerships. The terms of this data collection were buried in lengthy documents, and customers who chose not to participate were met with warnings that certain vehicle safety features would be deactivated.
These practices, according to the lawsuit, violate the Texas Deceptive Trade Practices Act. The state is not only seeking to stop G.M. from continuing these practices but also demands the destruction of all collected data and restitution for the affected customers, including 1.8 million Texans.
The implications of this case extend beyond Texas. It reflects a growing bipartisan concern about how companies in various industries, especially tech and automotive, handle consumer data. Recently, Senators Ron Wyden of Oregon and Edward J. Markey of Massachusetts called on the Federal Trade Commission to investigate the auto industry’s data collection practices, indicating that this issue could soon reach the national stage.
As this case unfolds, it could set a precedent for how companies must manage consumer data, balancing the benefits of technology with the rights of individuals to control their personal information. The outcome could reshape the landscape of consumer privacy, forcing companies to rethink how they gather, use, and share data in an increasingly connected world.