06:47 AM EDT, 08/14/2024 (MT Newswires) -- General Motors ( GM ) was sued by Texas Attorney General Ken Paxton for allegedly collecting and selling private driving data of more than 1.5 million Texas residents to insurance companies without their knowledge or consent, the Attorney General said in a statement late Tuesday.

The Texas Attorney General accuses General Motors ( GM ) of alleged "false, deceptive, and misleading business practices".

Earlier in June, Attorney General Ken Paxton opened an inquiry into a number of car makers over suspected secret collection of drivers' data and selling that data to third parties such as insurance firms.

The complaint alleges that most 2015 model year or newer General Motors ( GM ) vehicles are equipped with technology "to collect, record, analyze, and transmit highly detailed driving data about each time a driver used their vehicle." General Motors ( GM ) is accused of selling the collected data to several companies, including "at least two companies for the purpose of generating "Driving Scores" for GM's customers and selling these scores to insurance companies".

Paxton claims General Motors ( GM ) "deceived" customers by compelling them to enroll in products like OnStar Smart Driver during the vehicle onboarding process, implying that failing to do so would deactivate essential safety features, however, enrolling in these products unknowingly gave the company consent to collect and sell drivers' driving data.

General Motors ( GM ) did not immediately respond to requests for comment from MT Newswires.

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