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Texas sues GM, saying it tricked customers into sharing driving data sold to insurers

Texas alleged that GM and OnStar used Smart Driver and connected-car technology to collect detailed driving data and route it through data brokers whose products could be marketed to insurers. Here is what the Texas lawsuit alleged, what GM said, and what the FTC and California later required.

By CarCody Team 13 min read
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Texas sued GM and OnStar on August 13, 2024, alleging the companies used connected-car technology and OnStar Smart Driver to collect detailed driving data and route it to data brokers whose products could be sold to insurers. GM says Smart Driver ended in 2024; later FTC and California actions imposed additional privacy restrictions.

The lawsuit alleges deceptive data collection and consent practices, not a court finding that every allegation is true. The later federal and California actions produced concrete restrictions and privacy remedies, but the final disposition of the Texas state lawsuit was not independently verified from an accessible official docket in the research available for this article.

Texas had opened an investigation into automakers’ collection and sale of driving data on June 6, 2024, before filing against GM and OnStar. The Texas investigation announcement provides the earlier regulatory context.

Key takeaways: Texas sues GM, saying it tricked customers into sharing driving data sold to insurers

  • On August 13, 2024, the Texas attorney general sued GM and OnStar, alleging deceptive collection and sale of detailed driving data; the state’s press release said more than 1.5 million Texans were affected.
  • The Texas petition used a different pleaded figure, alleging data from more than 14 million GM vehicles and more than 1.8 million Texans, so those figures should not be combined.
  • The alleged information included trip dates and times, speed, distance, driver and passenger seatbelt status, vehicle-use information, and mobile-app data.
  • California later identified Verisk Analytics and LexisNexis Risk Solutions as data brokers that bought GM data from 2020 through 2024 for driver-rating products that could be marketed to auto insurers.
  • GM says it discontinued Smart Driver across all GM vehicles in 2024 and ended its third-party telematics relationships with LexisNexis and Verisk.
  • The FTC’s January 2026 order requires long-term affirmative consent and gives U.S. consumers access, deletion, opt-out, and certain precise-location controls, while California announced a separate $12.75 million settlement in May 2026.

What did Texas allege about GM and OnStar?

Texas alleged that GM and OnStar used connected-car technology and the OnStar Smart Driver enrollment process to collect, analyze, transmit, and sell detailed information about how customers drove. The allegation concerned more than ordinary vehicle telemetry: Texas argued that customers were not given clear, affirmative notice and meaningful choice before sensitive driving information was shared in products relevant to insurance.

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Texas Attorney General Ken Paxton announced the lawsuit on August 13, 2024. The Texas attorney general’s announcement alleged that technology installed in most GM vehicles from model year 2015 onward could collect and transmit driving information and that GM collected and sold private driving data belonging to more than 1.5 million Texans.

The filed petition alleged a different scope: data from more than 14 million GM vehicles and more than 1.8 million Texans. The figures come from separate Texas documents—the attorney general’s press release and the court petition—so the figures describe different pleadings and should not be presented as one combined total. The filed Texas petition is the source for the larger pleaded figures.

What data did OnStar Smart Driver allegedly collect?

Texas alleged that GM’s connected-vehicle systems could collect granular information about individual trips and driving behavior. The allegation was not that every vehicle generated every listed data point in every circumstance; the petition described categories of information that could be collected and transmitted.

Data category Examples described in the Texas materials Why the category mattered
Trip timing Date and the start and end times of a trip Trip timing can reveal patterns of vehicle use and routine.
Driving behavior Vehicle speed and distance driven These details could be used to calculate or evaluate driving scores.
Safety behavior Driver and passenger seatbelt status Seatbelt information could become part of a driver-behavior profile.
Connected services Other vehicle-use and mobile-app information The alleged data stream extended beyond a single speed or mileage reading.

California later said that the information GM sold to Verisk and LexisNexis included names, contact information, geolocation information, and driving-behavior data. California’s description came from its later investigation and settlement announcement, not from a final adjudication of every Texas allegation.

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How did GM driving data reach companies connected to insurance?

The alleged pathway ran from the vehicle and GM’s connected services to data brokers, rather than necessarily from GM directly to every individual insurance company. Texas alleged that GM supplied information to companies that generated driving scores and sold or marketed those scores to insurers.

  1. A GM vehicle generated connected-vehicle information about trips and driving behavior.
  2. GM and OnStar allegedly collected and transmitted that information through connected services, including Smart Driver.
  3. Data brokers received information that could be used to develop driver-rating products.
  4. Those products could then be marketed to auto insurers or used in insurance-related decision-making.

California identified Verisk Analytics and LexisNexis Risk Solutions as the two data brokers that purchased GM data between 2020 and 2024. The California Department of Justice’s May 8, 2026 announcement said the brokers intended to develop a driver-rating product that could be marketed to auto insurers.

California also reported that GM made approximately $20 million nationwide from the data sales between LexisNexis and Verisk. That is an approximately $20 million estimate reported by the California Department of Justice in 2026, not a court finding.

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Was customer consent the central issue?

Yes. The central Texas allegation was that customers were not clearly told what detailed driving information would be collected, where it would go, and how it could be used before enrollment.

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Texas alleged that GM compelled or encouraged customers to enroll in products such as OnStar Smart Driver during vehicle onboarding. The state further alleged that customers were told that failing to enroll could lead to deactivation of vehicle safety features. Texas also characterized GM’s disclosures as lengthy and convoluted rather than clear, affirmative consent to the collection and sale of driving data.

Those statements are allegations from the state’s complaint. They are not a court finding that every customer received the same onboarding message or that every GM vehicle used the same enrollment process. The legal question was whether notice and choice were sufficiently clear and meaningful for the data practices at issue.

What happened after Texas sued GM?

The Texas lawsuit was followed by GM’s program changes, a federal FTC order, and a separate California settlement. Those developments have different legal postures and cover different groups of consumers.

Development Legal posture and geography What it addressed Important limitation
Texas lawsuit, August 13, 2024 State lawsuit concerning Texans and GM/OnStar practices Alleged deceptive collection, disclosure, and sale of detailed driving data The research available for this article did not verify a final judgment, settlement, or dismissal.
GM response, January 16, 2025 Company statement concerning GM customers nationwide GM said it ended Smart Driver, unenrolled customers, ended its LexisNexis and Verisk telematics relationships, and expanded privacy options in all 50 states GM’s statement describes the company’s position and claimed remediation; it does not independently establish disputed historical facts.
FTC order, finalized January 2026 Federal enforcement resolution covering U.S. consumers Consent, access, deletion, opt-out, and precise-geolocation controls, plus a restriction on sharing covered data with consumer-reporting agencies The order is an enforcement resolution and should not be described as a trial verdict on every Texas allegation.
California settlement, announced May 8, 2026 California enforcement settlement concerning Californians Penalties, a five-year data-sale ban, deletion obligations, a stronger privacy program, and reporting California said its insurance laws barred insurers from using this data to set rates, and its investigation did not find increased California premiums through GM’s sales.

What did GM say about Smart Driver?

GM said that Smart Driver was designed to encourage safer driving but that the company ended the program after customer feedback. In a January 16, 2025 statement, GM said it had already discontinued Smart Driver across all GM vehicles in 2024, unenrolled customers, ended its third-party telematics relationships with LexisNexis and Verisk, and expanded privacy options nationwide.

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“Although Smart Driver was created to promote safer driving behavior, we ended that program due to customer feedback.”
General Motors, January 16, 2025, in its statement about the FTC settlement

GM’s response is important because it describes the company’s claimed remediation. GM’s statement is not independent verification of what happened historically, and ending Smart Driver does not by itself answer whether data collected earlier remained with GM or third parties. The FTC and California remedies addressed those forward-looking and retention questions separately.

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What did the FTC order require GM and OnStar to do?

The FTC’s January 2026 order requires GM and OnStar to obtain affirmative express consent for covered connected-vehicle data practices for the order’s 20-year duration, subject to limited exceptions.

The FTC’s January 16, 2026 announcement described these principal requirements:

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  • Five-year sharing restriction: GM and OnStar cannot share covered consumer geolocation and driver-behavior data with consumer-reporting agencies for five years.
  • Affirmative consent: For 20 years, the companies must obtain affirmative express consent before covered connected-vehicle data is collected, used, or shared, except where a limited exception applies.
  • Access and deletion: U.S. consumers must have a process to request a copy of their data and seek deletion.
  • Precise-location control: Consumers must be able to disable collection of precise geolocation data where the vehicle technology permits that control.
  • Opt-out: Consumers must have an opt-out mechanism for geolocation and driver-behavior data, subject to limited exceptions.

The five-year sharing restriction and the 20-year consent requirement are different remedies. The five-year provision targets sharing covered data with consumer-reporting agencies; the longer provision governs consent for covered collection, use, and sharing. The FTC described the order as settling allegations that GM and OnStar collected, used, and sold precise location and driving-behavior data from millions of vehicles without adequate notice and affirmative consent.

“The Federal Trade Commission finalized an order with General Motors and OnStar settling allegations that they collected, used, and sold consumers’ precise geolocation data and driving behavior data from millions of vehicles without adequately notifying consumers and obtaining their affirmative consent.”
Federal Trade Commission, January 16, 2026, FTC order announcement

What did California’s $12.75 million GM settlement change?

California’s announced settlement requires GM to pay $12.75 million in civil penalties and restricts future sales of covered driving data. The settlement concerns California enforcement, so the California remedies should not be treated as automatic benefits or payments for every GM driver in Texas or elsewhere.

According to the California Department of Justice’s May 8, 2026 settlement announcement, the terms include:

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  • A five-year ban on selling driving data to consumer-reporting agencies, including data brokers such as LexisNexis and Verisk.
  • Deletion of retained driving data within 180 days, subject to stated exceptions and affirmative express consent.
  • A requirement that GM request deletion of relevant data from LexisNexis and Verisk.
  • A stronger privacy program and reporting obligations.
  • $12.75 million in civil penalties.

California said its insurance laws prohibited insurers from using this driving data to set insurance rates. California’s investigation therefore did not find that California drivers had received higher premiums through GM’s data sales. That finding is limited to California law and California drivers; it does not establish what happened to insurance pricing in every other state.

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“General Motors sold the data of California drivers without their knowledge or consent and despite numerous statements reassuring drivers that it would not do so.”
California Attorney General Rob Bonta, May 8, 2026, in the California settlement announcement

Did GM sell my driving data directly to my insurance company?

The researched record does not establish that GM directly sold every driver’s information to that driver’s insurer. Texas alleged that GM supplied information to companies that generated driving scores and sold or marketed those scores to insurance companies; California identified Verisk and LexisNexis as data brokers that purchased GM data for a driver-rating product that could be marketed to insurers.

The distinction matters. A data broker can receive vehicle, location, and driving information and develop a product for insurers without the vehicle manufacturer directly sending an individual’s complete driving record to the individual’s insurance carrier. The allegations and regulatory actions establish the alleged data-broker pathway, not a universal finding that every insurer received or used every GM customer’s data.

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Did GM’s driving data affect insurance rates?

No universal insurance-rate impact has been established by the researched sources. California said its investigation did not find increased premiums for California drivers through GM’s data sales because California insurance law prohibited insurers from using this data to set rates, while the Texas allegations concerned data products that could be sold or marketed to insurers.

The evidence summarized here does not establish whether a particular driver’s premium changed because of GM or OnStar data. Insurance rules differ by state, and the California finding should not be generalized to Texas or to the entire United States.

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How do I opt out of GM Smart Driver or request my GM driving data?

Smart Driver itself was discontinued according to GM, but U.S. consumers can use the access, deletion, and opt-out mechanisms required by the FTC order for covered data. Readers should verify GM’s current privacy-request instructions directly because online forms, account labels, and phone procedures can change.

  1. Start with GM’s current privacy channel. GM’s January 2025 statement says the company provides a privacy-request form and a phone channel. Use the current instructions published by GM rather than relying on an old Smart Driver screen or an unofficial guide.
  2. Request access. Ask GM for a copy of connected-vehicle data associated with your account or vehicle, including relevant driving-behavior and geolocation information covered by the FTC process.
  3. Request deletion. Ask GM to delete covered personal data and identify any limitations or exceptions that apply. The FTC order provides a process for U.S. consumers to seek deletion; the order does not mean every record can be erased in every circumstance.
  4. Use the available opt-out and location controls. Request the applicable opt-out for geolocation and driver-behavior data, and disable precise geolocation collection where the vehicle technology permits that option.
  5. Ask about third-party data. If your concern involves LexisNexis or Verisk, ask GM how the request applies to data previously provided to those companies. California’s settlement requires GM to request deletion of relevant data from those brokers, but readers should not assume that a general GM request automatically produces a separate broker response.
  6. Keep the response. Save the request date, confirmation, response, and any explanation of exceptions. Those records help clarify what GM processed and what it could or could not delete.

GM’s public statement describes the company’s privacy options, while the FTC announcement describes the federal access, deletion, opt-out, and precise-location requirements. Neither source establishes that a third-party privacy service can find every GM telematics record, change an insurance premium, or obtain compensation.

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What happened to the Texas lawsuit against GM?

The definitive final disposition of the Texas lawsuit was not independently verified from an accessible official court docket in the research for this article. A publicly indexed docket for State of Texas v. General Motors LLC and OnStar LLC lists an amended filing and a March 6, 2026 court-status event, but that information is not enough to say that the case ended in a judgment, settlement, or dismissal.

The public docket index should therefore be treated as a status lead, not as proof of the case’s ultimate outcome. The FTC order and California settlement are separate developments and do not automatically resolve the Texas state lawsuit.

What should GM drivers not assume?

Possible assumption What the researched record supports
“GM directly sold my complete driving record to my insurance company.” The allegations describe data moving through companies including data brokers whose driver-rating products could be marketed to insurers; direct sale to every individual insurer is not established.
“A court has already proven every Texas allegation.” Texas filed allegations. The FTC later resolved federal allegations through an order, and California announced a settlement; those outcomes are not a trial finding on every fact in the Texas pleading.
“Every affected driver automatically gets money.” The researched sources do not establish a universal compensation program for GM drivers. California’s $12.75 million is a civil-penalty settlement, not an announced payment program for all drivers.
“California’s insurance result applies nationwide.” California said its own insurance laws prevented use of the data to set rates and that its investigation found no increased California premiums through the sales. Other states are not covered by that conclusion.
“Ending Smart Driver proves all historical data was erased.” GM says Smart Driver ended in 2024. The FTC and California remedies separately address access, deletion, retention, and requests to data brokers.

Frequently Asked Questions

Did GM sell my driving data directly to my insurance company?

No universal direct sale to each driver’s insurer has been established. Texas alleged that GM supplied data to companies that generated driving scores and sold or marketed those scores to insurers, while California identified Verisk and LexisNexis as data brokers that purchased GM data for a product that could be marketed to auto insurers.

What data did OnStar or GM Smart Driver collect?

The Texas materials described trip dates and start and end times, vehicle speed, distance driven, driver and passenger seatbelt status, and other vehicle-use and mobile-app information. California later said GM data sold to Verisk and LexisNexis included names, contact information, geolocation information, and driving-behavior data.

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Can I request or delete my GM driving data?

GM says Smart Driver was discontinued across all GM vehicles in 2024. The FTC’s January 2026 order also requires a process for U.S. consumers to request access to and deletion of covered data, plus opt-out and certain precise-geolocation controls, subject to exceptions and technical limits.

Do GM drivers automatically qualify for compensation?

The researched sources do not establish a universal compensation program for GM drivers. California’s $12.75 million settlement is described as civil penalties and does not automatically create a payment claim for every affected driver.

What happened to the Texas lawsuit against GM?

The final disposition was not independently verified from an accessible official court docket in this research. A public docket index lists an amended filing and a March 6, 2026 status event, but that does not establish whether Texas’s case ended in judgment, settlement, or dismissal.

The Bottom Line

Bottom line: Texas alleged that GM and OnStar obscured how connected-car driving data would be collected and routed through data brokers for products relevant to insurers. GM says Smart Driver and its LexisNexis and Verisk relationships ended in 2024. The later FTC order and California settlement created concrete consent, access, deletion, opt-out, data-sale, and retention restrictions, but the researched record does not establish the final outcome of the Texas case or a universal driver-compensation program.

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