LINCOLN, Kan. (KSNW) — The Nebraska attorney general’s office said Tuesday it has filed a lawsuit against General Motors (GM) and OnStar for allegedly collecting, processing and selling sensitive driving data from Nebraskans without their knowledge or consent.
State Attorney General Mike Hilgers accuses GM and OnStar of installing telematics systems in their vehicles that collect data, including speed, seatbelt usage, driving habits, and location. That data was then allegedly sold to third-party data brokers who used it to create driving scores for individual drivers.
Those scores were then sold to insurance companies, who used them to raise rates, deny coverage or cancel policies, according to the lawsuit. Nebraska drivers were never informed that their data was being collected or used against them.
Among the key allegations:
- GM 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.
- GM 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 obtaining any consent.
“Nebraskans deserve to work with companies that are truthful and honest about what they are doing,” says Attorney General Hilgers. “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.”
You can read the full complaint below.
When asked for comment on the lawsuit, a spokesperson for GM told Nexstar’s KSNW, “We remain committed to protecting consumers’ privacy and will conduct a review of the complaint.”
Nebraska is seeking civil penalties, restitution for affected Nebraskans, and an injunction to prevent GM and OnStar from continuing these practices in the state.
GM is not the only company accused of misusing telematics programs.
A 2024 investigation by the New York Times found instances of drivers who had not knowingly opted in to a telematics program being tracked. Data recorded without their consent was sold to third parties, sometimes resulting in a spike in insurance premiums, according to the Times.
