GM and OnStar Facing Lawsuit Over Alleged Consumer Privacy Breaches in Nebraska
In a series of legal disputes, General Motors (GM) and its subsidiary, OnStar, are under scrutiny for allegedly deceptive practices regarding the collection, processing, and sale of sensitive driving data. The central issues in these lawsuits revolve around data collection, lack of consent, and deceptive practices.
## The Data Collection Debate
At the heart of the controversy is GM's installation of telematics systems in its vehicles, which track various data points such as speed, seatbelt usage, location, and driving habits through OnStar services. This collected data was then packaged and sold to third-party data brokers, who used it to create "Driving Scores" for drivers, which were subsequently sold to insurance companies.
## Lack of Consent and Deceptive Practices
States, including Nebraska, allege that GM misrepresented the nature of OnStar services, leading consumers to believe these services were necessary for basic safety features. Furthermore, the lawsuits claim that this data collection and sale were conducted without consumers' knowledge or consent.
## Specific Allegations
1. **Deceptive Practices**: Nebraska accuses GM of using deceptive, unconscionable, and unlawful tactics to enroll its customers in its data collection programs. 2. **Inadequate Disclosure**: GM is accused of failing to adequately disclose to consumers that enrollment in certain services would allow data collection and sale. 3. **Incentivizing Unauthorized Enrollment**: Dealership employees were allegedly incentivized to enroll customers in OnStar without proper disclosure or consent.
## Legal Actions
- Nebraska's Attorney General, Mike Hilgers, has filed a lawsuit against GM, accusing the company of violating the Nebraska Consumer Protection Act and the Uniform Deceptive Trade Practices Act. - Similar lawsuits have been filed in other states, such as Texas, where legal actions are ongoing. - The Federal Trade Commission (FTC) has also taken action against GM and OnStar for allegedly collecting and selling driver data without consent.
## The Impact
The data collection and sale practices have significant implications for consumer privacy and insurance rates. The use of driving data to raise insurance rates or deny coverage without drivers' knowledge has been a major point of contention in these lawsuits. Attorneys General in various states are advocating for transparency and accountability from companies like GM regarding data collection and use.
Since at least 2015, GM has outfitted its vehicles with telematics technology that collects, records, analyzes, and transmits highly specific data about vehicle usage. This "highly specific" data included the date, start time, end time, vehicle speed, driver and passenger seatbelt status, and distance driven each time a GM vehicle was driven. GM obtained a significant amount of data from OnStar products such as Connected Vehicle Services, the OnStar Guardian App, and brand-specific apps like myGMC and myCadillac.
- The controversy surrounding General Motors (GM) and OnStar's data collection practices is raising concerns about consumer protection in relation to technology, as it appears consumers were not adequately informed about the collection, analysis, and sale of their sensitive driving data.
- In the context of the ongoing legal disputes, questions about the use of technology in data collection and its impact on consumer privacy, particularly the potential for increased insurance rates without proper consent, have become central issues.
