GM sued for selling driver data to insurers

In a new lawsuit, the Arkansas Attorney General alleges deceptive practices by GM and OnStar.

Mar 10, 2025 - 01:24

General Motors is facing yet another legal battle over its data collection practices. Arkansas Attorney General Tim Griffin has sued GM and its subsidiary OnStar, alleging the automaker illegally sold driver data to third parties, who then provided it to insurers. The lawsuit accuses GM of deceiving consumers and profiting at their expense by allowing insurers to use this data to raise premiums or deny coverage.

A pattern of data selling

The lawsuit, filed in late February, claims GM has been selling driver data since 2015 through connected vehicle systems like myChevrolet, myCadillac, myGMC, and myBuick. Unlike traditional insurance telematics programs that require users to opt in by installing a device, GM allegedly collected this data without explicit consent.

Close up of OnStar and SOS buttons on a Chevrolet vehicle, Lafayette, California, May 3, 2024.
Smith Collection/Gado/Getty Images

Griffin asserted that consumers were misled into believing OnStar primarily enhanced vehicle safety and performance, while in reality, it was used to generate revenue through data sales. A GM spokesperson responded to the allegations, telling Consumer Affairs, "We are reviewing the complaint. GM is committed to protecting consumers’ privacy."

The Arkansas lawsuit seeks monetary relief for affected consumers and injunctive measures to prevent further data sales.

GM’s legal trouble mounts

This lawsuit is the latest in a series of legal challenges against GM regarding data privacy. In January, the automaker settled with the Federal Trade Commission (FTC) over similar claims. As part of that settlement, GM agreed to refrain from selling geolocation or driving behavior data for five years and to obtain clear consumer consent before collecting such data in the future.

GMC Hummer electric vehicles on the production line at General Motors' Factory ZERO all-electric vehicle assembly plant in Detroit, Michigan, U.S., on Wednesday, Nov. 17, 2021.
Emily Elconin/Bloomberg via Getty Images

Meanwhile, Texas Attorney General Ken Paxton filed a lawsuit against GM in August 2024, accusing the company of illegally selling driving data from more than 1.5 million Texans. That case remains ongoing.

Beyond state-level legal action, GM is also contending with 27 class-action lawsuits that have been consolidated into a multi-district litigation case. These suits allege that GM’s data practices resulted in higher insurance rates for consumers and that some vehicle owners never consented to data collection in the first place.

A broader industry issue

An American flag flies near General Motors Co. signage outside the company's Renaissance Center world headquarters complex in Detroit, Michigan, U.S., on Tuesday, June 12, 2018.
Jeff Kowalsky/Bloomberg via Getty Images

GM isn’t the only company under fire for its data practices. In January, Texas sued Allstate and its subsidiary Arity for allegedly collecting driver data from smartphones without consumer knowledge. Regulatory pressure may intensify as insurers and automakers are scrutinized more closely for how they handle driver data.

Final thoughts

Modern vehicle connectivity allows for a growing suite of quality-of-life features for drivers, but the tech can be a double-edged sword as connected vehicles effectively turn into rolling surveillance machines — collecting detailed trip records, acceleration data and even GPS locations without clear transparency. While automakers claim such data enhances safety and convenience, lawsuits like these highlight the potential for misuse.

As these cases progress, the outcomes could set important precedents for data privacy in the automotive industry. If GM is found liable, the financial repercussions could be significant, potentially leading to compensation for affected drivers and stricter regulations on how automakers collect and share data.

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