General Motors, OnStar faces class action lawsuit in data sharing case

(WJET/WFXP) — General Motors is under fire for their alleged handling of data collection in a class-action lawsuit against General Motors; Onstar; and LexisNexis Risk Solutions.

According to a press release from the Schmidt National Law Group, the case fundamentally centers around consumer data privacy. When some GM vehicles are driven, the built-in OnStar system collects data on the driver's habits, even if the customer thinks they have "opted out" or have disabled the internal tracking device.

OnStar collection data includes, but is not limited to:

• How many trips per day
• Start and stop times of the GM vehicle
• Total distance driver, per trip and total mileage accrued
• An accounting of any "speeding of 80mph or greater, hard breaking, and/or sharp accelerations"

The press release goes on to say that GM customers have come forward stating that after purchasing and using new GM vehicles, their insurance rates increased, with some seeing 20-25% increases, and others even claimed to have their policies canceled.

The lawsuit alleges that the three companies shared sensitive driver data without consent, including details about mileage, speed, braking and acceleration. The data was then allegedly used by LexisNexis to generate a "risk score" for insurers, which can lead to increased insurance premiums or even denial of coverage.

After reports came out in March of this year, GM announced the discontinuation of the OnStar Smart Driver service. They also ended all partnerships with both LexisNexis and Verisk, and data sharing ceased on March 20, 2024.

In addition to the change of partnerships, they aimed to enhance privacy controls aimed at increasing transparency. Finally, they announced a change of leadership, with Alisa Bergman joining General Motors as the new Chief Trust and Privacy Officer.

An official from General Motors gave a statement saying in part:

At GM, we believe that vehicles are not just modes of transportation — they're also technology platforms that can enrich our customers’ lives. Vehicles have become increasingly connected, intelligent, and personalized with features that improve the overall driving experience and safety on every journey. As our technology progresses, we are committed to being transparent in our privacy practices and empowering customers with control of their data.

The full statement can be found here.

According to court documents, seven cases across five districts will have their suits consolidated in a Georgia federal court. Since the notice was filed, the panel has been notified of 20 potentially related cases. The panel stated that the Northern District of Georgia is an appropriate venue as it is the location where LexisNexis is headquartered.

The panel said in a statement:

These putative class actions share complex factual questions arising from allegations that General Motors equipped its vehicles with sensors and computer modules to collect information about personal driving behavior, and that it sold that information to data analytics companies like LexisNexis and Verisk, which then created reports of individuals’ driving history and sold them to automobile insurance providers.

We reached out to LexisNexis Risk Solutions for comment but have not heard back.