AUSTIN, Texas — Texas is suing General Motors (GM) over its collection of user data, alleging that the company is selling Texans’ private driving data to insurance companies without their consent. 

What You Need To Know

  • Attorney General Ken Paxton's lawsuit comes a couple of months after he opened an investigation into allegations that multiple car companies were improperly collecting user data and selling the information to third parties

  • According to Paxton’s office, GM uses technology installed in almost all of its cars–starting with the 2015 models–to collect, record, analyze and transmit “highly detailed driving data” from each time the vehicle has been used

  • GM, in a statement to Reuters, responded to the suit, saying the company is in contact with Paxton’s office

Attorney General Ken Paxton announced the lawsuit on Tuesday, and it comes a couple of months after he opened an investigation into allegations that multiple car companies were improperly collecting user data and selling the information to third parties. 

“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,” said Paxton in a news release. “Companies are using invasive technology to violate the rights of our citizens in unthinkable ways. 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.”

According to Paxton’s office, GM uses technology installed in almost all of its cars–starting with the 2015 models–to collect, record, analyze and transmit “highly detailed driving data” from each time the vehicle has been used. 

“General Motors sold this information to several other companies, including to at least two companies for the purpose of generating ‘Driving Scores’ about GM’s customers and selling these scores to insurance companies,” the release said. 

When drivers set up their car, many enroll in the OnStar Smart Driver program in order to activate the car’s safety features. The lawsuit alleges that this program is used by GM to collect data, which the company then sells to third parties. 

“Despite lengthy and convoluted disclosures, General Motors never informed its customers of its actual conduct—the systematic collection and sale of their highly detailed driving data,” the release said. 

GM, in a statement to Reuters, responded to the suit, saying the company is in contact with Paxton’s office. 

“We’ve been in discussions with the Attorney General’s office and are reviewing the complaint. We share the desire to protect consumers’ privacy,” the statement said.

The GM lawsuit from Paxton comes on the heels of a major victory for the Texas attorney general in a lawsuit concerning data collection. Meta, the parent company of Facebook, in late July agreed to pay $1.4 billion to settle a lawsuit over its collection of biometric data.