August 14, 2024 at 02:09PM
Texas has sued General Motors and its OnStar subsidiary for allegedly collecting and selling drivers’ data without their knowledge or consent. The lawsuit claims that GM used telematics technology to transmit detailed driving data and then sold it to data analytics companies for the purpose of calculating insurance rates. GM denies the allegations and states it has made changes to comply with user privacy expectations.
Based on the meeting notes, here are the key takeaways:
1. Texas has filed a lawsuit against General Motors and its OnStar subsidiary for allegedly collecting and selling drivers’ data to third parties without their knowledge or consent.
2. The lawsuit alleges that GM transmitted detailed driving data from its vehicles to data analytics companies, who then sold the data to insurance companies to build driver scores and determine insurance rates.
3. More than 16 million GM customers had their data sold to third parties without consent, with 1.8 million residing in Texas.
4. The data sold included information such as trip details, vehicle speed, seatbelt status, distance traveled, GPS data, and driving behavior.
5. GM allegedly made substantial profits from the sale of data through lump sum payments, royalty payments, and kickbacks.
6. The lawsuit also implicates telematics companies, including Verisk, Wejo Limited, LexisNexis Risk Solutions, and Jacobs Engineering Group, for their involvement in receiving and reselling driving data.
7. GM is accused of misleading customers about the use of their data, particularly through the OnStar onboarding process, and failing to disclose the sale of data to analytics companies and insurers.
8. GM has announced the discontinuation of some services and partnerships related to data collection in response to customer feedback and the lawsuit.
Please let me know if there’s anything else you need to be informed about.