Texas Attorney General Ken Paxton has taken legal action against General Motors, alleging that the automaker compromised the privacy of millions of Texans through its sale of location data. Filed on Tuesday in the Montgomery County District Court, the lawsuit claims GM engaged in deceptive practices by obtaining and selling drivers’ data to brokers, who then used it to influence insurance rates.
According to the lawsuit, GM collected detailed data on driving habits from more than 1.8 million Texans and 14 million vehicles, which was subsequently used by third-party companies to determine risk scores affecting insurance premiums, all without the drivers’ consent.
Texas’s legal action against GM for data privacy violations reflects increasing scrutiny of how automakers manage driver information
This lawsuit marks a pioneering state-level enforcement action targeting an automaker’s data privacy practices. In response, GM has stated that they are examining the complaint and reaffirmed their commitment to consumer privacy.
The controversy surrounding GM’s data practices gained traction following a March New York Times report, which revealed the company’s sharing of driver data with brokers, who then relayed it to insurance firms. Further scrutiny from Senators Ron Wyden and Ed Markey highlighted concerns about GM’s consent practices and alleged manipulation in data collection.
Paxton’s lawsuit underscores growing concerns about data privacy in the automotive industry, as it represents a critical legal challenge to companies’ handling of consumer information.
