General Motors Data Theft

General Motors (GM), along with other automakers, collects vast amounts of data from modern vehicles. This data includes locations, trip start and stop times, & detailed driving behavior such as acceleration, braking, and speed. These practices have raised huge privacy concerns as this data is often:

• Shared with law enforcement without a warrant,
• Sold to third-party data brokers like LexisNexis and Verisk,
• Resold to insurance companies, potentially leading to insurance price hikes for consumers.

This article explores GM’s data practices & their impact on consumers.

Background

Modern cars are equipped with internet connections that allow automakers to collect real-time data for diagnostics, safety, and customer convenience. Investigations have revealed that this data is often shared without adequate(or any) consumer consent:

• NY Times Investigation: A report highlighted how GM, through its OnStar Smart Driver program, collected driving data and shared it with LexisNexis and Verisk for resale to insurance companies. Drivers often discovered premium increases based on telematics data without prior knowledge.
• Legislative Concerns: Senators Ron Wyden (D-OR) and Edward Markey (D-MA) requested the FTC investigate automakers for deceptive practices, including sharing location and driving data without obtaining informed consent.
• Texas Lawsuit: The Texas Attorney General filed a lawsuit against GM for violating consumer protection laws, alleging it collected and monetized consumer data without clear consent.

Data Collection Practices

GM collects a wide range of data through its OnStar and vehicle systems, including:

• Location Data: Real-time GPS coordinates, routes, and travel history.
• Driving Behavior: Speeding, hard braking, and rapid acceleration metrics.
• Vehicle Diagnostics: Maintenance needs, battery status, and crash data.

Sharing with Third Parties

GM shares data with:

1. Data Brokers: LexisNexis and Verisk use GM’s data to generate driver risk profiles sold to insurers.
2. Insurance Companies: These profiles affect premiums, often raising costs for drivers deemed “risky.”
3. Law Enforcement: GM has admitted to sharing location data with law enforcement via subpoenas, bypassing warrant requirements.

Consumer Harm

Lack of Transparency

Many consumers are unaware of GM's data-sharing practices. Consent is often bundled with unrelated features like theft notifications or safety diagnostics, using manipulative "dark patterns" to obscure data-sharing terms.

Financial Harm

Drivers have reported increased insurance premiums based on data profiles generated from GM’s telematics systems, even when unaware of their enrollment in programs like OnStar Smart Driver.

Privacy Violations

The inability to opt out of data sharing without disabling the vehicle's internet connectivity poses significant privacy concerns. GM confirmed that all drivers activating internet-connected features automatically have some location data shared with third parties.

Data Theft Allegations

The Texas Attorney General’s lawsuit alleges that GM penalized consumers for “bad” driving behavior by sharing their data with brokers and insurers without informed consent. The lawsuit also demonstrates GM’s failure to provide easy to understand opt-out mechanisms for its data-sharing programs.

See Also

• Automotive data privacy
• Vehicle telematics
• Connected car security
• Volkswagen Car Location Data Exposure Incident