Legal issues continue for General Motors and OnStar over car data privacy issues. Last August, the State of Texas filed suit against General Motors for unlawfully collecting and selling driver data. You'll also remember the FTC took action against both entities in January for allegedly collecting, used and selling driver geolocation data and driving behavior info to insurance companies without notifying them and obtaining their consent.
Now, it's Nebraska's turn. The Nebraska Attorney General recently announced its own lawsuit again General Motors LLC and OnStar LLC for what it calls the "deceptive collection and sale of Nebraskans' driving data." The lawsuit against accuses the companies of unlawfully collecting, processing, and selling sensitive driving data from Nebraskans without their knowledge or consent. The lawsuit alleges that GM engaged in deceptive and unconscionable business practices in violation of the Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act.
According to the lawsuit, GM installed telematics systems in its vehicles that tracked a wide array of data points, including speed, seatbelt usage, driving habits, and location. It says GM then packaged and sold that data to third-party data brokers, who used it to create “Driving Scores” for millions of drivers. These scores were later allegedly sold to insurance companies and used to raise rates, deny coverage, or cancel policies. The Nebraska Attorney General says this was all done without Nebraska drivers ever knowing such data was being collected or used against them.
Among the Nebraska AG's key allegations:
• 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 any consent at all.
“Nebraskans deserve to work with companies that are truthful and honest about what they are doing,” Attorney General Hilgers said. “That is not what happened here, and we filed this lawsuit because one large company decided that it wouldn’t honestly tell Nebraskans that their data was going to be used to impact their insurance rates. This is wrong. Our office will hold companies that mislead Nebraskans accountable, no matter how large.”
The complaint seeks civil penalties, restitution for impacted Nebraskans, and injunctive relief to prevent GM and OnStar from continuing these practices in the state.
You can see the actual lawsuit filing here.