General Motors (GM) is under legal scrutiny for allegedly selling driver data without proper consent. The lawsuit, filed by **Nebraska Attorney General Mike Hilgers** in **Lancaster County District Court**, claims that GM and its subsidiary, **OnStar**, engaged in practices that raise significant privacy concerns. Hilgers accuses the company of utilizing tracker devices to collect data on driving speeds, braking patterns, geolocation, and seatbelt usage, which was then allegedly sold to third-party companies, including insurance providers.
This data collection allegedly resulted in unfair fees for drivers, including increased insurance rates and policy cancellations. According to the **Nebraska Examiner**, GM’s actions have prompted concerns over what Hilgers described as “emotional blackmail.” He stated, “We know that you can actually do what these insurance companies and what companies like GM want to do legally, through consent, through notice, through disclosures. It’s not what they did here.”
The lawsuit highlights that GM failed to obtain clear consent from drivers and used misleading tactics to enroll them in data-collecting programs. Hilgers emphasized that some of GM’s methods involved suggesting that OnStar services were necessary for safety, which he termed as a form of emotional coercion.
GM has been collaborating with insurance companies to collect driver data since **2005**. Hilgers notes that newer GM vehicles come equipped with data-collection devices by default, potentially eliminating the need for explicit consent. This raises concerns about how many Nebraska residents have been affected over the years, with the lawsuit indicating that GM delivered nearly **19,000 vehicles** to the state in **2023** alone.
The Nebraska lawsuit seeks several remedies, including civil penalties, restitution for affected consumers, a permanent ban on the contested practices, and coverage of legal fees. In response, GM stated its commitment to consumer privacy and indicated that it would review the lawsuit. The company has reportedly discontinued the **OnStar Smart Driver program** and has ceased data sharing with certain third parties.
This case echoes similar legal challenges faced by GM, including one initiated by **Texas Attorney General Ken Paxton** in **August 2023**, alongside an ongoing investigation by the **Federal Trade Commission (FTC)**. The FTC’s findings revealed that GM collected data as frequently as every three seconds, although a settlement has yet to be finalized.
Hilgers affirmed that the state would hold corporations like GM accountable for deceptive practices that harm Nebraskans. As the case unfolds, it underscores the growing scrutiny over how automotive companies manage and utilize consumer data, raising critical questions about privacy rights in an increasingly connected world.
