Ark. AG Sues General Motors for Sale of Data to Third Parties, Insurance Companies
Arkansas Attorney General Tim Griffin announced Wednesday that the state sued General Motors (GM) for selling data collected through its subsidiary OnStar to third parties, who later sold it to insurance companies.
Sign up for a free preview to unlock the rest of this article
“Despite advertising OnStar as offering the benefits of better driving, safety, and operability of its vehicles, GM and OnStar used the data to pad their profits at the expense of consumers,” the AG said. “GM and OnStar deceived consumers about how they used the driving data. In our lawsuit, we are alleging violations under the Arkansas Deceptive Trade Practices Act and unjust enrichment.”
The driving data of more than 100,000 Arkansans was secretly captured and sold without their consent, the lawsuit alleges. It also said that GM’s practices directly contradicted the company's promises in the Alliance for Automative Innovation’s Consumer Privacy Protection Principles. “We will hold GM accountable for deceiving Arkansans and increasing profits through deceptive practices,” Griffin said.
GM didn't comment Wednesday. In August last year, Texas sued GM for its allegedly unlawful collection and sale of private driving data to insurance companies (see 2501160029).