A new lawsuit from Indiana’s Attorney General alleges that GM deceived Hoosier consumers about OnStar data tracking.
(Josh Bryan/Adobe Stock)
Major car manufacturer General Motors has sold thousands of vehicles with OnStar technology to Hoosiers, pitching the add-on as a safety and convenience feature.
But Indiana Attorney General Todd Rokita claims that the two entities deceived Hoosiers by “secretly collecting and selling Indiana drivers’ personal data to third parties,” a practice he says led to higher insurance rates that benefitted the companies.
“Everyone deserves transparency and honesty from the companies they do business with, especially when it comes to having their data protected,” Rokita said in a Thursday release. “General Motors and OnStar turned a supposed safety feature into a way to make money, profiting off Indiana drivers without their knowledge. We’re taking action to hold them accountable and protect our consumers from these deceptive practices.”
Hoosiers who believe that they have been impacted by these practices can reach the Office of Attorney General to file a complaint by visiting indianaconsumer.com or calling 1-800-382-5516.
GM also has a website and phone number for users who would like access or delete their information, at gm.com/consumer-privacy or 1-866-MYPRIVACY (1-866-697-7482).
OnStar LLC, a subsidiary of General Motors LLC, previously offered a “Smart Driver” system that the companies said would maximize vehicle performance and reduce wear and tear, according to an archived webpage cited in the lawsuit.
GM reached a settlement with the Federal Trade Commission earlier this year and halted the Smart Driver program in 2024, unenrolling customers and ending their third-party relationships, according to a January release.
“Respecting our customers’ privacy and earning their trust is deeply important to us. Although Smart Driver was created to promote safer driving behavior, we ended that program due to customer feedback,” the statement read. “… The FTC consent order includes new measures that go above and beyond existing law, while capturing steps we’ve already taken to establish choices for customer data collection and communications about how the information is used.”
Under the agreement, the company “will” obtain affirmative consent from costumers to collect, use or disclose certain vehicle data for the next 20 years.
Rokita filed a civil case with the Marion Superior Court on March 19. A docket from MyCase shows that while a subpoena and summons have been filed, the company hasn’t yet responded to the claims.
The tracking software documents the following, according to the complaint: geolocation, route history, driving schedule, fuel or charging levels, hard braking events, hard acceleration events, tailgating, time spent idle, speeds over 80 mph, average speed, late-night driving and driver attention.
Rokita asserts that the above information is sold to data brokers, who then create risk profiles and driving scores to sell to insurers, which charge higher premiums or even cancel policies.
Additionally, the complaint alleges that General Motors “coerced” Hoosiers into activating OnStar without informing customers of its data practices. Doing so could be a violation of the Indiana Deceptive Consumer Sales Act.
According to its website, GM operated 124 dealerships statewide as of Jan. 1, 2024 and sold more than 61,000 vehicles in Indiana in 2023.
The office’s release goes on to say that Rokita is seeking a permanent injunction and civil penalties alongside consumer restitution and “other relief.”
“Hoosiers were secretly misled and used,” Rokita said. “Their actions are unacceptable and we’re fighting back to ensure this type of behavior never happens again.”
Indiana Capital Chronicle is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Indiana Capital Chronicle maintains editorial independence. Contact Editor Niki Kelly for questions: info@indianacapitalchronicle.com.
