Texas AG Slams the Brakes on Allegedly Unauthorized Collection and Sale of Driver Data

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  • Texas AG Ken Paxton has sued General Motors LLC and its subsidiary OnStar LLC (collectively “GM”) over allegations that GM misled vehicle purchasers into enrolling in programs that collected and shared their driving data with third parties in violation of the Texas Deceptive Trade Practices Act (DTPA).
  • According to the complaint, GM used aggressive marketing and deceptive sales tactics to enroll vehicle purchasers in products that were advertised as improving the safety, functionality, and operability of the vehicle, yet also collected and transmitted driving data to GM, which in turn sold that data to third parties, including insurance companies. GM is also alleged to have sold the driver data with knowledge that insurance companies could use the information to financially harm consumers through increased car insurance premiums, denials, or dropped coverage.
  • The complaint requests declaratory and injunctive relief barring GM’s use of any deceptive pattern or design regarding the collection or sale of driving data without consumers’ informed consent, destruction of all driving data held by GM or third parties, civil monetary penalties, restitution, attorney fees, and costs.
  • According to the AG’s office, this lawsuit is part of the Texas AG’s ongoing data privacy and security initiative to enforce state data privacy laws.
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