Texas Attorney General Files Lawsuit Against General Motors for Selling Driver Data to Insurance Companies

Allegations of Deceptive Business Practices

The Texas Attorney General, Ken Paxton, recently filed a lawsuit accusing General Motors of engaging in deceptive business practices by collecting data on car owners’ driving habits and selling the information to insurance companies without consumers’ consent. According to the lawsuit, General Motors did not inform the 1.8 million Texans who own vehicles made by the automaker that their driving data was being sold to third parties.

Concerns Over Privacy and Surveillance

The lawsuit comes at a time when there is increased scrutiny over the collection and use of driver data by automakers. With the advancement of new car systems that can track speed, location, and driving behavior, concerns about privacy and surveillance have been raised. Consumers have expressed unease about the idea of their cars being turned into comprehensive surveillance systems that record their every move.

Impact on Insurance Rates and Consumer Privacy

The data collected by General Motors was allegedly sold to companies like LexisNexis Risk Solutions and Verisk Analytics, who use it to create driving scores for individuals. This information is then used by insurance companies to set auto insurance rates based on driving behavior. While the concept of using driving data to determine insurance rates is not new, the lack of transparency and consumer consent in this case has raised significant concerns about privacy and data protection.

In conclusion, the lawsuit filed by the Texas Attorney General highlights the importance of safeguarding consumer privacy and ensuring transparency in the collection and use of sensitive data. As technology continues to advance, it is crucial for companies to prioritize data protection and consumer consent to maintain trust and accountability in the digital age.