financetom
Business
financetom
/
Business
/
Texas sues GM for allegedly violating drivers' privacy
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Texas sues GM for allegedly violating drivers' privacy
Aug 13, 2024 3:38 PM

Aug 13 (Reuters) - General Motors ( GM ) has been sued

by the state of Texas, which accused the automaker of installing

technology on more than 14 million vehicles to collect data

about drivers, which it then sold to insurers and other

companies without drivers' consent.

Texas Attorney General Ken Paxton said Tuesday's lawsuit

arose from a probe announced in June into whether several

automakers collected and sold mass amounts of data without

drivers' knowledge.

Paxton said GM's data were used to compile "Driving Scores"

assessing whether more than 1.8 million Texas drivers had "bad"

habits such as speeding, braking too fast, steering too sharply

into turns, not using seatbelts and driving late at night.

Insurers could then use the data when deciding whether to

raise premiums, cancel policies or deny coverage, Paxton said.

The technology was allegedly installed on most GM vehicles

starting with the 2015 model year.

Paxton said GM's practice was for dealers to subject

unwitting consumers who had just completed the stressful buying

and leasing process into believing that enrolling in its OnStar

diagnostic products, which collected the data, was mandatory.

"Companies are using invasive technology to violate the

rights of our citizens in unthinkable ways," Paxton said in a

statement. "Our investigation revealed that General Motors ( GM ) has

engaged in egregious business practices that violated Texans'

privacy and broke the law. We will hold them accountable."

GM did not immediately respond to requests for comment.

The lawsuit was filed in a Texas state court in Montgomery

County, near Houston.

It seeks the destruction of improperly collected data,

compensation for drivers, civil fines and other remedies for

violations of the Texas Deceptive Trade Practices Act.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Copyright 2023-2026 - www.financetom.com All Rights Reserved