GM Sued For Selling Customer’s Driving Data Secretly

As modern vehicles become increasingly advanced computers on wheels, the concern for driver privacy comes to the fore. Automakers have come under scrutiny over suspicions of collecting and selling sensitive driving data to third parties, including insurance companies.

The scandal escalated back in 2024, when a New York Times investigation revealed that General Motors (GM) was sharing customer data, leading to the first lawsuit.

The US federal state of Nebraska has now joined the lawsuit. Attorney General Mike Hilgers filed a lawsuit against General Motors and its OnStar division for what he said was the “unlawful collection, processing, and sale of sensitive driving data” belonging to Nebraskans.

The lawsuit alleges that GM fraudulently collected and sold its customers’ data for years without their knowledge or consent. The information was collected through the OnStar telematics system and included everything from the date, time, and duration of the drive to speed, seat belt status, and distance travelled. GM is estimated to have collected and sold data on more than 14 million vehicles in the US, “many thousands of which belong to Nebraska residents.”

After collecting the data, GM allegedly entered into contracts with outside firms, which, based on the data, assigned a “driving rating” to each driver. The rating was based on risk factors such as sudden braking, sudden acceleration, seat belt use, and sharp curves. Those firms, then, the lawsuit alleges, resold access to the data to insurance companies, which could directly affect the cost of auto insurance policies.

According to Hilgers, “GM made millions of dollars from one-time payments from third parties, royalties from licenses sold to insurance companies, and annual guaranteed payments.” The lawsuit also alleges that GM falsely claimed that drivers had consented to the collection and sale of their data.

Hilgers points out that GM used “deceptive, unfair, and illegal tactics to engage its customers in data collection programs.” The lawsuit seeks fines, damages for affected citizens, and an injunction barring GM and OnStar from continuing the practice.

“Nebraska residents deserve to work with companies that are honest about what they do. That was not the case here,” Hilgers said. “We filed suit because a large company decided not to honestly tell citizens that their data would be used to influence insurance prices. That’s wrong, and our office will hold accountable anyone who misleads citizens, regardless of their size.”

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