LINCOLN, Neb. — Nebraska’s Attorney General Mike Hilgers has announced a lawsuit against General Motors LLC and OnStar LLC, accusing the companies of illegally collecting and selling sensitive driving data from Nebraskans without their consent. The lawsuit, submitted to the Lancaster County District Court, claims GM’s actions violate the Nebraska Consumer Protection Act and the Uniform Deceptive Trade Practices Act.
The legal filing asserts that GM incorporated telematics systems into its vehicles to monitor various data, including speed, seatbelt usage, driving behaviors, and geographic locations. The collected data was packaged and sold to third-party brokers, who used it to create “Driving Scores,” impacting insurance coverage. Nebraskans reportedly remained unaware that their personal information was being utilized against them in this manner.
Key allegations in the lawsuit highlight several deceptive practices by GM. The company allegedly misled consumers about the nature of OnStar services at the point of sale. Additionally, drivers were often led to believe that joining OnStar was necessary to access fundamental safety features. GM also reportedly failed to sufficiently disclose that participation in its mobile apps and Connected Vehicle Services would result in the collection and sale of detailed personal information.
It is claimed that dealership employees were motivated to enroll customers without providing adequate disclosure, and in some instances, without obtaining any consent at all. These practices have raised concerns about consumer rights and transparency in the automotive industry.
Attorney General Hilgers expressed his determination to protect Nebraskans, stating, “Consumers deserve to engage with businesses that prioritize honesty about their operations.” He criticized GM for failing to inform Nebraskans that their data could influence insurance rates, affirming that his office will hold accountable any corporation that misleads the public.
The legal action reflects growing scrutiny over privacy issues related to tech-enabled vehicles. As automakers increasingly rely on data collection, the expectations for transparency and ethical practices have intensified among consumers and regulators alike.
This lawsuit could set a precedent regarding the handling of personal data by major corporations in the automotive sector, emphasizing the need for stringent compliance with consumer protection laws.
The implications of this case could resonate beyond Nebraska, as it raises critical questions about consumer privacy rights and corporate accountability in the digital age.
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