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Texas Sues GM for Allegedly Misleading Customers and Selling Their Driving Data

14 August 2024

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Zaker Adham

Summary

On Tuesday, Texas filed a lawsuit against General Motors (GM), accusing the company of deceiving customers and misusing their driving data. The lawsuit claims that new car owners were subjected to a "confusing and highly misleading" process, which was presented as a safety measure but was actually designed to collect and sell their data. According to the suit, GM never disclosed the possibility of selling driving data, violating Texas consumer protection laws.

 

Texas Attorney General Ken Paxton is seeking a jury trial and demands at least $10,000 per offense for every GM car sold in the state since 2015. Additionally, there is a request for a $250,000 penalty in cases where the victim was over 65 years old.

 

This lawsuit follows Texas's recent $1.4 billion settlement with Meta over privacy issues, suggesting that the state may be looking to address budgetary concerns through such legal actions.