Attorney general claims General Motors, OnStar secretly collected, sold customer data

Dan Carden, The Times, Munster, Ind.Times

Attorney General Todd Rokita is suing General Motors and OnStar alleging the linked companies engaged in deceptive practices by secretly collecting and selling Indiana drivers' personal data to third parties, including insurance companies, without their knowledge or consent.

The Republican claims General Motors and OnStar misrepresented their telematics system as a safety and convenience feature for motorists while using it to harvest detailed driving behavior and location data — such as speed, hard braking and late-night driving habits — and selling it to data brokers for profit.

The brokers then created risk profiles and driving scores that were sold to insurers, resulting in higher premiums or canceled policies for unsuspecting Hoosiers, according to the attorney general.

"Everyone deserves transparency and honesty from the companies they do business with, especially when it comes to having their data protected," Rokita said.

"General Motors and OnStar turned a supposed safety feature into a way to make money, profiting off Indiana drivers without their knowledge. We're taking action to hold them accountable and protect our consumers from these deceptive practices."

According to the complaint, General Motors hid its data sharing practices from consumers and coerced them into activating OnStar in their vehicles and enrolling in services as part of an "onboarding" process. General Motors then treated consumers' enrollment as consent to collect and sell their driving data, without ever explicitly informing them of these practices.

Rokita said those actions violate Indiana's Deceptive Consumer Sales Act. He is seeking a permanent injunction to stop them and also is asking the court for civil penalties against the companies as well as consumer restitution and other relief.

"Hoosiers were secretly misled and used," Rokita said. "Their actions are unacceptable and we’re fighting back to ensure this type of behavior never happens again."

Records show General Motors and OnStar have not yet responded to the lawsuit filed in Marion Superior Court. The companies are facing similar lawsuits filed by the attorneys general of Texas and Arkansas.

Hoosiers who believe they may have been impacted by the alleged actions of General Motors and OnStar can file a consumer complaint with the Indiana attorney general's office online at indianaconsumer.com or by calling 800-382-5516.

Complaint in Indiana v. General Motors and OnStar

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