Consumers Affected
1,500,000
Texas Attorney General Ken Paxton filed a lawsuit against General Motors for unlawfully collecting private driving data from over 1.5 million Texas drivers without consent and selling the data to third parties including insurance companies. GM allegedly deceived customers into enrolling in products like OnStar Smart Driver by falsely claiming enrollment was required to retain vehicle safety features, while concealing that enrollment authorized systematic collection and sale of detailed driving data. The action follows an investigation launched in June 2024 as part of the Texas AG’s data privacy initiative, and seeks to hold GM accountable for violating state privacy laws.
In-house legal teams should review all vendor and partner agreements with automotive manufacturers, telematics providers, insurance companies, and data analytics firms to ensure explicit, informed consumer consent is obtained for any collection, use, or sale of driving, location, or vehicle telematics data. Clauses governing data sharing, third-party sales, and consumer notice must be updated to prohibit deceptive or coercive enrollment practices (such as threatening deactivation of vehicle safety features to compel consent), require clear and conspicuous disclosure of all data collection and sale activities, and ban the use of dark patterns in onboarding processes. Contracts with data buyers should include restrictions on downstream use of driving data, require verification of valid consumer consent prior to purchase, and mandate compliance with all applicable state privacy laws. Additionally, agreements involving generation of driving scores or consumer profiling should be audited to confirm they align with consent and notice requirements, and include provisions for consumer opt-out of data collection and sale.
Entity
General Motors
Industry
AutomotiveOfficial Press Release
https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-general-motors-unlawfully-collecting-drivers-private-data-and
General Motors Original Petition Filestamped
https://www.texasattorneygeneral.gov/sites/default/files/images/press/General%20Motors%20Original%20Petition%20Filestamped.pdf
Texas Attorney General Enforcement Page
https://www.texasattorneygeneral.gov/consumer-protection/privacy
"General Motors"
"August 13, 2024"
"Texas Attorney General Ken Paxton"
"without their knowledge or consent"
"despite lengthy and convoluted disclosures, General Motors never informed its customers of its actual conduct—the systematic collection and sale of their highly detailed driving data."
"sold this information to several other companies, including to at least two companies for the purpose of generating “Driving Scores” about GM’s customers and selling these scores to insurance companies."
$12.8M
California Attorney General Rob Bonta, along with multiple district attorneys and the California Privacy Protection Agency, announced a $12.75 million settlement with General Motors for illegally selling hundreds of thousands of Californians' location and driving data to data brokers Verisk and LexisNexis without notice or consent. The settlement includes the largest CCPA penalty to date, a five-year ban on selling driving data to consumer reporting agencies, and requirements to delete retained data and implement a robust privacy program.
Texas Attorney General Ken Paxton issued a consumer alert warning Texans about scams, fraudulent charities, and illegal price gouging related to severe flooding. The guidance provides resources for verifying charities and reporting suspected fraud or price gouging to the AG's office.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.
Texas Attorney General Ken Paxton opened an investigation into LinkedIn Corporation over allegations that the company advertised and profited from fake or misleading job opportunities ("ghost jobs") on its platform. The investigation focuses on whether LinkedIn misled consumers who paid for Premium subscriptions by failing to disclose that a significant percentage of job postings may be inactive or not genuine hiring opportunities.
$45.0M
Attorney General Ken Paxton secured a $45 million multistate settlement with Block, Inc. (Cash App) for misleading consumers about the safety of its platform and failing to protect users from fraud. The settlement requires Cash App to maintain 24-hour customer support, cease deceptive safety claims, and fulfill its legal duty to investigate and reimburse unauthorized transactions.
$13.0M
Texas Attorney General Ken Paxton secured a settlement with Walmart over deceptive practices in its Spark Driver program. Walmart misrepresented driver pay, including failing to pass on customer tips and altering base pay after drivers accepted offers. The $13 million settlement provides direct payments to affected Texas drivers and requires Walmart to implement honest compensation practices.