Texas vs GM: The Dark Side of Driver Data Tracking in the Automotive Industry

Texas Takes Action Against GM’s Data Practices

Texas Attorney General Ken Paxton filed a lawsuit against General Motors (GM), alleging that the company has violated Texans' privacy rights by collecting and selling driver data without proper consent. This suit, stemming from a June 2024 investigation, claims that such practices have been ongoing since 2015, affecting over 1.8 million drivers who utilized GM's services like OnStar Smart Driver.

Industry-Wide Concerns Over Data Collection

The lawsuit claims that GM sold data to third-party brokers, who in turn used it to influence insurance premiums based on individuals' driving records. This highly controversial move highlights a greater trend across the car industry, where a September 2023 report from Mozilla branded the automotive sector as severely deficient in privacy protection. In fact, 84% of surveyed brands were found to share or sell personal data to outside entities.

• Before buying an insurance policy, consider asking about data practices.
• Be aware of how your car’s connectivity features might compromise your privacy.
• Other car companies, including Honda and Hyundai, were mentioned in a July 2024 investigation by Senators Ron Wyden and Ed Markey for similar actions.

The Future of Data Privacy in the Automotive Sector

Experts warn that this could represent only the beginning of a larger reckoning regarding data sharing within the automotive sector. Matthias Schmidt, an automotive expert, pointed out that as manufacturers continue to collect more data, the temptation to monetize this information will grow stronger. This shift in consumer perception—where users of car services are seen less as owners and more as data sources—adds an ethical layer to the discussion on privacy rights.

In conclusion, the ongoing scrutiny of data practices in the automotive world signifies a potential turning point. As more legislators become involved, accountability may finally strengthen consumer protections regarding personal data collected through vehicles.