Iowa’s attorney general filed a lawsuit against General Motors (GM) for allegedly selling driver data without customer disclosure. The state claims GM collected information on speed and driving habits through its OnStar program.
GM allegedly sold this data to third-party brokers who then shared it with insurance companies. This practice potentially resulted in higher premiums or policy cancellations for consumers without their consent.
The lawsuit alleges GM violated the Iowa Consumer Fraud Act through deceptive practices and failure to disclose material facts. Since the 2015 model year, GM has installed these data collection systems in the majority of its new vehicles. Over 186,000 affected vehicles were sold in Iowa. The complaint asserts these systems effectively allow vehicles to spy on their owners.