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.