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GM Faces Over 25 Class Action Lawsuits for Allegedly Selling Driver Data
General Motors (GM), one of the largest automobile manufacturers in the world, is currently embroiled in legal turmoil after over 25 class action lawsuits were filed against the company. These lawsuits accuse GM and its subsidiary, OnStar, of selling sensitive driver data without adequate consent. Here's a comprehensive look into the events, eligibility criteria, and what to expect in the future.
Key Events
Initial Allegations: The controversy began in early 2024, when reports surfaced that GM was allegedly selling private vehicle data to brokers like LexisNexis. This data included GPS coordinates, speed, braking events, and other driving behavior metrics.
First Lawsuit: The first lawsuit was filed in March 2024, highlighting GM's data practices through its OnStar Smart Driver program. A GM customer in Florida claimed that the data sharing, which he never enrolled in, led to elevated insurance premiums and rejections from auto insurance companies.
Federal Trade Commission (FTC) Involvement: By January 2025, the FTC announced its action against GM. The FTC accused GM of collecting, using, and selling drivers' precise geolocation and driving behavior information without adequately notifying consumers. This led to privacy concerns and allegations of misleading enrollment processes.
Settlement Proposal: GM and OnStar have agreed to a settlement proposed by the FTC, which bans them for five years from disclosing consumers' sensitive geolocation and driver behavior data to consumer reporting agencies. The settlement is still pending final approval after a 30-day public comment period.
Eligibility Criteria
The class action lawsuits primarily involve GM vehicle owners who have been affected by the alleged data sharing practices. Plaintiffs claim they were not properly informed about how using OnStar and the Smart Driver program could impact their car insurance. Eligibility criteria include:
Vehicle owners who used the OnStar service or downloaded specific vehicle apps like the myCadillac app.
Individuals who experienced elevated insurance premiums or insurance rejections due to the shared driving data.
Consumers who were inadequately informed or misled about the data collection and sharing practices by GM.
Future Process
Multidistrict Litigation: The 25+ lawsuits have been consolidated into multidistrict litigation titled "IN RE: Consumer Vehicle Driving Data Tracking Litigation". This consolidation aims to streamline the legal proceedings and handle common factual and legal issues efficiently.
Public Comment and Approval: The FTC's proposed settlement will undergo a 30-day public comment period before final approval. This gives the public an opportunity to provide feedback on the agreement.
Impact on GM and OnStar: Under the settlement, GM and OnStar must delete any data collected before the settlement and ask third parties to do the same. They are also required to provide greater transparency and choice to consumers over the collection, use, and disclosure of their connected vehicle data5.
Long-Term Ban: GM and OnStar will be prohibited from disclosing consumers' sensitive geolocation and driver behavior data for five years.
Here are five notable class action settlements and their projected values, to give some perspective on what might unfold in GM's case:
Toyota Unintended Acceleration Settlement: Toyota settled for $1.1 billion in a class action that alleged unintended acceleration issues in various models.
Volkswagen Diesel Emissions Scandal: Volkswagen agreed to a $14.7 billion settlement over the emission cheating scandal with certain diesel cars.
Equifax Data Breach: Equifax settled for $575 million (potentially $700 million) for a class action lawsuit filed due to a massive data breach that affected 147 million consumers.
BP Deepwater Horizon Oil Spill: BP settled for $20 billion with class action suits pertaining to the 2010 oil spill, impacting environmental and economic sectors across the Gulf of Mexico.
Bank of America Mortgages: Bank of America reached a $335 million settlement in a class action for discriminating against Black and Hispanic homebuyers.
Given the high stakes in GM's driver data lawsuit, the projected value could easily enter into the multi-billion dollar range, aligning with similar large-scale class actions involving significant consumer data privacy and misuse.
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