GM, OnStar Sued For Allegedly Selling Driver Data
Nebraska's Attorney General says his office is suing General Motors and OnStar for allegedly collecting drivers' data and then selling it to third-party companies without their consent for at least the last 10 years. That data would end up getting sold to insurance companies, and sometimes it would lead to rate increases and even canceled insurance policies.
The lawsuit, filed by AG Mike Hilgers, says that the data collected included how fast people were driving, how hard they were stopping, their geolocation and whether or not they were wearing seatbelts, according to the Nebraska Examiner. The lawsuit also alleges an "aggressive, concerted effort" to enroll buyers into GM products. These efforts led to some drivers being opted into products without their consent in what Hilgers calls "emotional blackmail." GM made it seem that OnStar and other paid services were necessary for family and personal safety or that the data wouldn't be shared except for "limited circumstances." This doesn't seem to be the case, of course.
It's not exactly clear how much Nebraskans were impacted by GM's alleged practices over the last 10 years, but The Examiner says the lawsuit claims GM delivered nearly 19,000 vehicles to the state in 2023 alone. Considering the fact that there are, like, 36 people in Nebraska, this issue has impacted a great deal of them.
Here are some of the key allegations against General Motors, according to NBC KSNW:
GM deceived consumers at the point of sale by misrepresenting the nature and scope of the OnStar-connected services.
Consumers were often misled into believing enrollment in OnStar was mandatory to access basic safety features.
GM failed to adequately disclose that enrollment in its mobile apps or Connected Vehicle Services would allow the company to collect and sell detailed personal data.
Dealership employees were incentivized to enroll customers without proper disclosure and, in some cases, without obtaining any consent.
Nebraska is apparently seeking civil penalties ($2,000 per violation), restitution for impacted Nebraskans and an injunction to prevent The General and OnStar from continuing these practices in the Cornhusker State. A GM spokesperson told KSNW that the automaker remains "committed to protecting consumers' privacy and will conduct a review of the complaint."
Nebraska isn't the only state that is currently suing GM. About a year ago, we reported that Texas had filed a similar lawsuit against the company, alleging that it violated customers' rights in "unthinkable ways." If you want to learn more about what GM was allegedly doing to its customers, you can read all about it here.
