Texas Is Accusing A Major Car Company Of Selling Customer Data

SAN ANGELO, TX – Texas Attorney General Ken Paxton has filed a lawsuit against General Motors (GM), alleging the company sold data collected from over 14 million vehicles to third-party companies without the consent of the drivers.

The lawsuit, filed this week, claims that GM used its smart driver feature to gather information such as acceleration patterns and braking habits. According to the suit, many customers were unaware their data was being collected, and some reported that the information was later used by their insurance companies to increase their rates.

GM has responded to the lawsuit, stating that it is reviewing the claims and emphasizing its commitment to consumer privacy. The allegations have prompted lawmakers to call on the Federal Trade Commission (FTC) to launch an investigation into the broader practices of data collection and sales within the automotive industry.

The data brokerage industry, which includes the sale of personal information gathered from various devices, is estimated to generate $200 billion annually. Privacy experts have raised concerns over how this data is used and who has access to it, highlighting the growing importance of consumer privacy in a high-tech world.