General Motors (GM) is facing significant legal challenges after allegations emerged that the automaker sold driver data without obtaining proper consent. Nebraska Attorney General Mike Hilgers has filed a lawsuit claiming that GM engaged in practices that amount to “emotional blackmail” and raised serious privacy concerns regarding the company’s use of tracking devices in vehicles.

The lawsuit, lodged in Lancaster County District Court, accuses GM and its subsidiary OnStar of collecting extensive data from drivers, including information on speeding, braking patterns, geolocation, and seatbelt usage. This data is reportedly sold to third-party companies, including insurance providers, which has allegedly led to unfair financial consequences for consumers, such as increased insurance premiums or even policy cancellations.

Hilgers 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 claims that GM did not obtain clear consent from drivers and misled them when enrolling in data collection programs, describing their tactics as deceptive.

### Emotional Manipulation Allegations

The attorney general highlighted that some of GM’s practices could be considered “emotional blackmail.” For instance, the company suggested that OnStar services were essential for the safety of drivers. Since 2005, GM has formed partnerships with insurance companies to gather driver data, and Hilgers asserts that many of GM’s newer vehicles come equipped with data-collection devices, potentially eliminating the need for explicit consent.

One notable statistic reveals that GM operates 54 dealerships in Nebraska and collaborates with 19 Nebraska suppliers, employing 16 individuals in the state. While the exact number of affected drivers over the past decade remains unclear, the lawsuit asserts that GM delivered nearly 19,000 vehicles to Nebraska in 2023 alone.

The Nebraska lawsuit seeks various legal remedies, including civil penalties, restitution for consumers affected by the alleged practices, a permanent ban on such operations, and coverage of legal fees.

### Broader Implications and GM’s Response

In response to the allegations, GM stated that it is committed to consumer privacy and intends to review the lawsuit thoroughly. The case in Nebraska parallels earlier legal actions, including a similar lawsuit filed by Texas Attorney General Ken Paxton in August and an ongoing investigation by the Federal Trade Commission (FTC). The FTC has reportedly found that GM collected data at intervals as frequent as every three seconds, although a settlement with the company has yet to be finalized.

GM has indicated that it has discontinued the OnStar Smart Driver program and ceased sharing data with certain third parties in light of these concerns. Hilgers emphasized the importance of holding large corporations accountable for misleading practices that negatively impact consumers in Nebraska.

As consumers navigate the complexities of auto insurance, many are left seeking ways to reduce their monthly premiums. Strategies include increasing deductibles, inquiring about available discounts, and improving credit scores, among others.

This legal battle serves as a critical reminder of the ongoing discussions surrounding data privacy and consent in the digital age, particularly as technology continues to evolve in the automotive industry.