LINCOLN, Kan. (KSNW) — The Nebraska legal professional normal’s workplace stated Tuesday it has filed a lawsuit in opposition to Common Motors (GM) and OnStar for allegedly accumulating, processing and promoting delicate driving knowledge from Nebraskans with out their data or consent.
State Legal professional Common Mike Hilgers accuses GM and OnStar of putting in telematics methods of their autos that acquire knowledge, together with velocity, seatbelt utilization, driving habits, and site. That knowledge was then allegedly offered to third-party knowledge brokers who used it to create driving scores for particular person drivers.
These scores have been then offered to insurance coverage corporations, who used them to lift charges, deny protection or cancel insurance policies, in keeping with the lawsuit. Nebraska drivers have been by no means knowledgeable that their knowledge was being collected or used in opposition to them.
Among the many key allegations:
- GM deceived customers on the level of sale by misrepresenting the character and scope of the OnStar-connected companies.
- Customers have been usually misled into believing enrollment in OnStar was necessary to entry fundamental security options.
- GM did not adequately disclose that enrollment in its cell apps or Linked Automobile Companies would enable the corporate to gather and promote detailed private knowledge.
- Dealership staff have been incentivized to enroll prospects with out correct disclosure and, in some instances, with out acquiring any consent.
“Nebraskans should work with corporations which can be truthful and sincere about what they’re doing,” says Legal professional Common Hilgers. “That’s not what occurred right here, and we filed this lawsuit as a result of one massive firm determined that it wouldn’t actually inform Nebraskans that their knowledge was going for use to affect their insurance coverage charges. That is mistaken. Our workplace will maintain corporations that mislead Nebraskans accountable, regardless of how massive.”
You possibly can learn the total criticism beneath.
When requested for touch upon the lawsuit, a spokesperson for GM informed Nexstar’s KSNW, “We stay dedicated to defending customers’ privateness and can conduct a overview of the criticism.”
Nebraska is looking for civil penalties, restitution for affected Nebraskans, and an injunction to forestall GM and OnStar from persevering with these practices within the state.
GM shouldn’t be the one firm accused of misusing telematics applications.
A 2024 investigation by the New York Occasions discovered situations of drivers who had not knowingly opted in to a telematics program being tracked. Information recorded with out their consent was offered to 3rd events, generally leading to a spike in insurance coverage premiums, in keeping with the Occasions.