In a move that could reshape the automotive industry’s relationship with consumer privacy, Texas Attorney General Ken Paxton has filed a lawsuit against General Motors, alleging the automaker illegally collected and sold sensitive driver data to third parties without obtaining explicit consent.
The lawsuit, filed on Tuesday, claims that GM installed technology in over 14 million vehicles since 2015 that secretly tracked drivers’ every move, from speed and braking habits to location and driving times. This data was then allegedly compiled into “driving scores” and sold to insurance companies and other businesses, potentially allowing them to discriminate against drivers based on their behavior.
Texas AG Sues GM Over Alleged Privacy Violations in Vehicle Data Collection Practices
“Millions of American drivers wanted to buy a car, not a comprehensive surveillance system that unlawfully records information about every drive they take and sells their data to any company willing to pay for it,” Paxton stated in a press release. “Our investigation revealed that General Motors has engaged in egregious business practices that violated Texans’ privacy and broke the law. We will hold them accountable.”
The lawsuit further alleges that GM misled consumers by implying that participation in data collection programs was mandatory for vehicle safety features to function properly. According to Paxton, this deceptive tactic coerced drivers into unwittingly sharing their personal information.
The Texas Attorney General’s office is seeking damages for affected drivers, civil penalties against GM, and the destruction of improperly collected data. The lawsuit also demands that GM cease all data collection and sharing practices without explicit, informed consent.
This legal action comes amidst growing concerns over the privacy implications of connected vehicles. As cars become increasingly equipped with sensors and internet connectivity, automakers have amassed vast amounts of data on their customers’ driving habits. While some argue that this data can be used to improve vehicle safety and develop new services, critics contend that it poses significant privacy risks.
Legal Battle Over Car Data Collection Sparks Debate on Privacy and Innovation in the Automotive Industry
Mozilla, a non-profit organization focused on internet health, has previously described new cars as “a privacy nightmare,” highlighting the potential for data misuse. A New York Times investigation revealed that some drivers were unaware their data was being tracked and sold, expressing feelings of betrayal when they learned about it.
GM has not yet issued a formal response to the lawsuit. However, the automaker has previously defended its data collection practices, stating that it complies with all applicable laws and regulations. The company has also emphasized the benefits of using data to improve vehicle safety and driver assistance features.
The outcome of this case could have far-reaching implications for the automotive industry. If Texas prevails, it could set a precedent for other states to pursue similar legal actions, potentially leading to stricter regulations on data collection and sharing. Additionally, it could force automakers to be more transparent about their data practices and give consumers greater control over their personal information.
As the legal battle unfolds, it is likely to spark a broader conversation about the balance between innovation and privacy in the connected car era.
