GM is sued by Texas over collection, sale of drivers' private data

(Reuters) -General Motors has been sued by the state of Texas, which accused the automaker of installing technology on more than 14 million vehicles to collect data about drivers, which it then sold to insurers and other companies without drivers' consent.

Texas Attorney General Ken Paxton said Tuesday's lawsuit arose from a probe announced in June into whether several automakers collected and sold mass amounts of data without the knowledge of drivers.

Purchasers were allegedly able to use GM's data to determine whether more than 1.8 million Texas drivers engaged in "bad" habits such as driving or braking too fast, steering too sharply into turns, not using seatbelts, and driving late at night.

The lawsuit seeks the destruction of improperly collected data, compensation for drivers, a civil fine, and other remedies.



"Companies are using invasive technology to violate the rights of our citizens in unthinkable ways," Paxton said in a statement. "Our investigation revealed that General Motors (NYSE:GM ) has engaged in egregious business practices that violated Texans' privacy and broke the law. We will hold them accountable."

GM did not immediately respond to requests for comment.

Source: Investing.com