Lincoln, ear. ,KSNW) – Nebraska Attorney General’s office said on Tuesday that it has filed a case against General Motors (GM) and onstar, which for collecting, processing and selling sensitive driving data from Nebraksons without their knowledge or consent.
State Attorney General Mike Hilgars accused GM and onstar of installing telematics systems in their vehicles, collecting data, including speed, seatbelt use, driving habits and location. The data was then allegedly sold to the third-party data brokers who used it to make a driving score for individual drivers.
The scores were then sold to insurance companies who, according to the trial, used them to increase rates, deny coverage or cancel policies. Nebraska drivers were never informed that their data was being collected or used against them.
In major allegations:
- GM cheated consumers at the point of sales by incorrectly presenting the nature and scope of onstar-connected services.
- Consumers were often misled in enrollment in onstar, mandatory to reach basic security facilities.
- GM sufficiently failed to disclose that enrollment in your mobile apps or connected vehicle services will allow the company to collect and sell detailed personal data.
- The dealership employees were encouraged to enroll customers without any proper disclosure, and in some cases, without obtaining any consent.
Attorney General Hilgars says, “Nebrasons are worth working with companies that are true and honest what they are doing.” “It’s not what happened here, and we filed a lawsuit because a big company decided that it would not sincerely tell Nebraksons that their data is being used to influence their insurance rates. It is wrong. It is wrong. Our office will wear companies that mislead NebraScns, no matter how big it is.”
You can read the entire complaint below.
Asked for a comment on the trial, a GM spokesman told Nexstar’s KSNW, “We are committed to protect the privacy of consumers and review the complaint.”
Nebraska is demanding a civilian punishment, restoration for affected Nebrakshan, and a prohibition to prevent GM and Onstar from continuing these practices in the state.
GM is not the only company accused of misusing telematics programs.
New York Times’s 2024 investigation found examples of drivers who did not deliberately selected in a telematics program Being trackedAccording to the Times, the data recorded without their consent was sold to the third party, resulting in a spike in the insurance premium sometimes.
