Last year Mozilla released a report showcasing how the auto industry has some of the worst privacy practices of any tech industry in America (no small feat). Massive amounts of driver behavior is collected by your car, and even more is hoovered up from your smartphone every time you connect. This data isn’t secured, often isn’t encrypted, and is sold to a long list of dodgy, unregulated middlemen.
Last March the New York Times revealed that automakers like GM routinely sell access to driver behavior data to insurance companies, which then use that data to justify jacking up your rates. The practice isn’t clearly disclosed to consumers, and has resulted in 11 federal lawsuits in less than a month.
Now Texas AG Ken Paxton has belatedly joined the fun, filing suit (press release, complaint) in the state district court of Montgomery County against GM for “false, deceptive, and misleading business practices”:
“Companies are using invasive technology to violate the rights of our citizens in unthinkable ways. Millions of American drivers wanted to buy a car, not a comprehensive surveillance system that unlawfully records information about every drive they take and sells their data to any company willing to pay for it.”
Paxton notes that GM’s tracking impacted 1.8 million Texans and 14 million vehicles, few if any of whom understood they were signing up to be spied on by their vehicle. This is, amazingly enough, the first state lawsuit against an automaker for privacy violations, according to Politico.
The sales pitch for this kind of tracking and sales is that good drivers will be rewarded for more careful driving. But as publicly-traded companies, everybody in this chain — from insurance companies to automakers — are utterly financially desensitized from giving anybody a consistent break for good behavior. That’s just not how it’s going to work. Everybody pays more and more. Always.
But GM and other automakers’ primary problem is they weren’t telling consumers this kind of tracking was even happening in any clear, direct way. Usually it’s buried deep in an unread end user agreement for roadside assistant apps and related services. Those services usually involve a free trial, but the user agreement to data collection sticks around.
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Source: Texas AG Latest To Sue GM For Covertly Selling Driver Data To Insurance Companies | Techdirt
Robin Edgar
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