General Motors is being sued again for unauthorized driver data collection and sharing, influencing auto insurance rates, just a week after the automaker announced a halt to its data collection practices following the filing of a similar lawsuit earlier in March, according to the Detroit Free Press.
The new lawsuit, seeking class action status, was filed in the U.S. District Court Eastern District of Michigan, by Larry Reed of Michigan and Darnell McCoy Sr. of California. They accuse GM and its subsidiary OnStar of privacy invasion and engaging in deceptive practices by secretly gathering their driving information and then sharing it with insurance companies to justify rate increases.
This driving data, comprising details on acceleration, hard braking and speeding, was reportedly used without the drivers' informed consent. E. Powell Miller, representing the plaintiffs, chose not to comment on the ongoing legal battle.
In response to these serious allegations, GM spokesman Kevin Kelly said the company is currently reviewing the complaint and refrained from further comments.
The lawsuit in Michigan echoes concerns raised in the Florida case, filed March 13, where a plaintiff experienced a significant insurance rate hike due to GM's data sharing with LexisNexis and insurers. Following the Florida lawsuit, GM announced March 22 it would cease its data-sharing activities with LexisNexis and Verisk, emphasizing customer trust and privacy reassessment.
The day before the Florida lawsuit was filed, the New York Times reported on several drivers of GM cars who'd seen unexplained spikes in their car insurance rates, which were traced back to OnStar Smart Driver, a free feature in GM brands’ connected car apps, which the drivers had been unknowingly enrolled in.
While GM's recent decision to end data sharing might suggest an acknowledgment of improper practices, experts like Erik Gordon and David Vladeck caution against viewing it as an admission of guilt. They told the Free Press the move could be a strategic response to potential bad publicity or a preventive measure against customer backlash.
