- Vehicle owners are suing GM for allegedly collecting their driving data without consent.
- Drivers say their insurance rates have been affected by the data.
- GM previously admitted that it shares driving data with third-party companies, but said all owners agreed to it.
Automakers are increasingly offering connected features to help vehicle owners improve their driving or get help in an emergency. But these apps can also have downsides for consumers, whose insurance premiums are reportedly influenced by driving data collected by auto companies. Some consumers claim that information about their habits is being collected without their consent and are suing General Motors.
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A new class action lawsuit led by plaintiffs Barbara Figlio and Morris D. Gordin has been filed in U.S. District Court in Georgia. They claim that their driving data was collected against their will and that this led to an increase in their insurance premiums.
Read: Car manufacturers betray you and sell your driving data to insurers
“Group members’ personal, private driving behavior or driver behavior data was collected by GM through various modules located in their vehicles that are connected to its affiliate OnStar through connectivity apps, regardless of whether the user has consented to such transfer,” it says it in the lawsuit.
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The plaintiffs allege that the data was then sent to consumer reporting agencies such as LexisNexis and Verisk, which then shared it with insurers without the drivers’ consent. In many cases this led to higher rates.
In this class action lawsuit, plaintiffs are suing GM and OnStar for unjust enrichment and breach of contract. In New Jersey, they are pursuing legal action against the automaker and its subsidiary for violating the Truth-in-Consumer Contract Warranty and Notice Act, trespassing and violating the New Jersey Consumer Fraud Act. They are also suing LexisNexis and Verisk for violations of the Fair Credit Reporting Act and the New Jersey Consumer Fraud Act.
In March, GM admitted that it was sharing “select insights” with data brokers about braking, acceleration and speeding above 80 miles per hour. However, it was said that affected customers had agreed to their data being passed on when signing a user agreement.
Previously, a Cadillac owner in Florida said he was denied insurance by seven companies based on data collected from his vehicle, even though he had never heard of the connected apps that appeared to have collected his data. That owner, Romeo Chicco, filed a class action lawsuit against GM, OnStar and LexisNexis on March 13, 2024.
General Motors has now announced the termination of its collaboration with data brokers LexisNexis and Verisk. In a statement to Freep in March, the automaker said: “Starting March 20, OnStar Smart Driver customer data will no longer be shared with LexisNexis or Verisk. Our customers’ trust is our priority and we are actively evaluating our data protection processes and policies.”
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