State of Nebraska files lawsuit against General Motors and OnStar

LINCOLN, Neb. (KOLN) – Attorney General Mike Hilgers announced Tuesday that the State of Nebraska has filed a lawsuit against General Motors LLC and OnStar LLC for allegedly unlawfully collecting, processing, and selling sensitive driving data from Nebraskans without their knowledge or consent.

The lawsuit, filed in Lancaster County District Court, alleges that General Motors engaged in deceptive and unconscionable business practices in violation of the Nebraska Consumer Protection Act and Uniform Deceptive Trade Practices Act.

The lawsuit accuses General Motors of installing telematics systems in its vehicles that tracked a wide array of data points, including speed, seatbelt usage, driving habits, and location. The company then allegedly packaged and sold that data to third-party data brokers, who used it to create “Driving Scores” for millions of drivers.

Hilgers said the scores were later sold to insurance companies and used to raise rates, deny coverage, or cancel policies, all without Nebraska drivers ever knowing such data was being collected or used against them.

According to Hilgers, among the key allegations:

• General Motors deceived consumers at the point of sale by misrepresenting the nature and scope of the OnStar-connected services.
• Consumers were often misled into believing enrollment in OnStar was mandatory to access basic safety features.
• General Motors failed to adequately disclose that enrollment in its mobile apps or Connected Vehicle Services would allow the company to collect and sell detailed personal data.
• Dealership employees were incentivized to enroll customers without proper disclosure and, in some cases, without any consent at all.

“Nebraskans deserve to work with companies that are truthful and honest about what they are doing,” Hilgers said. “That is not what happened here, and we filed this lawsuit because one large company decided that it wouldn’t honestly tell Nebraskans that their data was going to be used to impact their insurance rates. This is wrong. Our office will hold companies that mislead Nebraskans accountable, no matter how large.”

The complaint seeks civil penalties, restitution for impacted Nebraskans, and injunctive relief to prevent General Motors and OnStar from continuing these practices in the state.

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