General Motors has terminated its relationships with two prominent data brokers, LexisNexis Risk Solutions and Verisk, amidst allegations of improper sharing of driver data.
We recently covered the controversy here at GM-Trucks.com. We detailed how General Motors uses driving data taken from OnStar, and its Smart Driver program and feeds it to consumer data collection brokers. We also told you how to cut off the sharing of this data to the best of your ability.
The decision to terminate the relationships with LexisNexis and Verisk also follows a lawsuit initiated by a Florida resident, Romeo Chicco, who accuses GM and its connected-services subsidiary, OnStar, along with LexisNexis, of violating privacy and consumer protection laws by sharing his driving data without consent, leading to higher auto insurance rates.
The lawsuit, filed in the United States District Court Southern District of Florida on March 13, alleges that GM captured and distributed information about Chicco’s driving habits, such as speeding, braking, and acceleration, without his knowledge. This information was reportedly shared with LexisNexis and subsequently with insurance companies, impacting Chicco’s insurance rates. The complaint seeks class-action status, highlighting potential widespread implications.
GM’s response to the allegations has been to emphasize its commitment to customer trust and privacy. The company stated that its OnStar Smart Driver program, which is optional and requires customer consent, is the only source of the data shared with insurers. This program is designed to monitor driving habits with the goal of reducing vehicle wear-and-tear and enhancing safety. However, GM-Trucks.com has found that many GM vehicle owners have opted into Smart Driver without their consent.
In a win for drivers, GM vehicle owners, and consumers, following the lawsuit, GM announced that as of March 20th, it would no longer share OnStar Smart Driver customer data with LexisNexis or Verisk.
The broader issue at hand extends beyond GM and the automotive industry. The use of fine print to disclose data sharing practices is a common tactic across various sectors, often leading to confusion among consumers about how their data is being used. This case has sparked discussions about the need for clearer regulations and protections regarding data privacy and consent.
Legal experts anticipate that this lawsuit could pave the way for more legal challenges against companies that share customer data without transparent consent. The outcome of this case could have significant implications for data privacy practices in the automotive industry and beyond, potentially leading to more stringent regulations and a reevaluation of how companies handle customer data.
This incident serves as a reminder of the importance of clear communication and consent in data sharing practices. As vehicles become more connected and data-driven, automakers and other industries must navigate the fine balance between leveraging data for innovation and respecting consumer privacy. The GM case could mark a pivotal moment in this ongoing debate, emphasizing the need for transparent and ethical data usage practices.
