The state of Arkansas has filed a lawsuit against General Motors (GM) and its subsidiary, OnStar, accusing the auto company of deceptive trade practices related to the collection and sale of consumer driving data. The lawsuit claims that for over a decade, GM gathered detailed driving information, including vehicle speed, acceleration, braking patterns, and location data, which was then sold to brokers. This data, which was often obtained without drivers’ informed consent, was used to increase insurance rates and, in some cases, led to consumers being removed from their insurance plans. The state argues that GM’s actions, which took place without clear disclosure, were “unconscionable.”
Attorney General Tim Griffin has pointed out that location data was gathered even from drivers who did not subscribe to OnStar’s telematics services.
The data was sold to insurance companies and brokers, affecting more than 100,000 residents in Arkansas. Griffin contends that the practice was especially egregious because GM and the insurance companies could not even determine if the driver involved in any risky behavior was the vehicle owner, a friend, or a valet. Arkansas is now seeking an injunction to stop GM from continuing this practice and demands that the company pay back the money earned from selling this data.
The complaint further alleges that GM’s salespeople were financially incentivized to enroll customers in OnStar, often bypassing proper disclosure of how the collected data would be used.
It describes how some salespeople would sign up customers for OnStar without their knowledge, and the company’s marketing materials misrepresented the purpose of the service. The complaint highlights that GM portrayed its data collection as part of its mission to create a “world with zero crashes, zero emissions, and zero congestion” without informing consumers that the data could be sold to insurers and data brokers.
This lawsuit is not the first of its kind against GM for its data practices. A similar suit was filed by Texas Attorney General Ken Paxton in August 2024, accusing GM of deceptive trade practices. Arkansas’ case aims to hold GM accountable for its actions and protect consumers from further harm caused by the sale of their private data. GM has yet to respond to these claims publicly, and the lawsuit continues to raise concerns about the privacy practices of companies in the connected vehicle industry.
