Texas Attorney General Ken Paxton has filed a lawsuit against General Motors (GM), accusing the company of mishandling drivers’ data in violation of state privacy laws. The lawsuit alleges that GM engaged in deceptive practices by pushing drivers to enroll in products that collected their data, which GM then sold to various firms. Some of these firms used the data to generate “driving scores,” which were sold to insurance companies. Paxton argues that drivers were misled into buying what amounted to a surveillance system rather than a vehicle.
The lawsuit, which represents Paxton’s first major action in a new privacy initiative, seeks civil penalties of up to $10,000 per offense, considering the estimated 1.8 million affected customers in Texas. Paxton is also pushing for a court order requiring GM to destroy the collected data. This legal action affects all GM vehicles sold in Texas since 2015, when GM began requiring drivers to sign up for data-collecting technologies such as OnStar Smart Driver to activate vehicle safety features.
This legal challenge comes on the heels of Paxton’s broader investigation into several car manufacturers regarding their data-handling practices. Earlier this year, Paxton established a new enforcement unit for the Texas Data Privacy and Security Act, known for its strong consumer protection provisions. His office’s actions follow scrutiny of data collection practices of connected vehicles and recent reports, including one from the New York Times, highlighting concerns about automakers’ data practices.
GM has stated that it is engaged in discussions with Paxton’s office and shares the goal of protecting consumer privacy. The lawsuit reflects growing concern over the data collection capabilities of connected vehicles and the broader implications for privacy as automotive technology advances. As data brokers and tech companies continue to develop new products, there is increased focus on regulating how such data is used and ensuring consumer rights are upheld.
Reference:
- https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-general-motors-unlawfully-collecting-drivers-private-data-and
