Prosecutor Ken Paxton from Texas has recently filed a lawsuit against General Motors Corporation (GM), alleging that the company violated state confidentiality laws. Paxton claims that GM intentionally misrepresented its data collection practices to drivers by offering services that surreptitiously gathered and sold personal information to third parties.
According to the prosecutor’s office, GM promoted products that required driver registration, subsequently sharing the collected data with other companies. These companies, in turn, utilized the data to create “driving assessments” that were then sold to insurance companies. Paxton highlighted that millions of American car buyers were unknowingly part of a surveillance system that illicitly recorded their movements and sold the information without their knowledge.
The lawsuit was initiated following an investigation by Paxton into various automobile companies, including GM, regarding their handling of extensive data collected from connected cars. The lawsuit demands a jury trial and seeks fines of up to $10,000 per violation, considering the approximately 1.8 million affected customers in Texas, resulting in potentially significant penalties. Furthermore, Paxton is requesting the court to compel GM to delete all data collected.
This lawsuit covers all GM vehicles sold in Texas since 2015 when the company began mandating driver subscriptions to technologies like ONSTAR Smart Driver for activating car safety features. GM has stated that they are engaging in discussions with Paxton’s office and supports safeguarding consumer privacy.
Earlier in May, the Federal Trade Commission (FTC) cautioned automakers regarding the handling and sale of customer data, suggesting potential actions against manufacturers for sharing sensitive data with advertisers, especially geodata and undisclosed confidential information.