OnStar Class Action Lawsuit Collecting Driver Data

This Practice Raises Insurance Rates – Even if you Opt-Out.

A recent New York Times post entitled “Automakers Are Sharing Consumers’ Driving Behavior with Insurance Companies” has brought to light the current privacy issue of data sharing between General Motor’s OnStar division and insurance companies, this in turn has generated a massive OnStar/ GM/ LexusNexis lawsuit.

The New York Times story from March 11, 2024 tells the situation of Mr. Dahl, the owner of a software company, who after driving his Chevy Bolt received an insurance bill that was 21% higher than his previous bills. What was the cause of this increase? The driver has a clean driving record and has never had an accident.  After contacting a few insurance companies for quotes, he was told by one company his LexusNexis report was a factor in the higher rates.

A concerned Mr. Dahl reached out to LexusNexis and demanded seeing the report, bound by the Fair Credit Reporting Act, LexusNexis obliged and sent him a 258 page “consumer disclosure report”.

What he found in this lengthy report were 130 pages detailing all of the times he or his wife drove their Chevy Bolt over a six month period.  It included the following data points:

• A total of 640 trips (in six months)
• Start and stop times of the Chevy Bolt
• Total Distance driven, per trip and total mileage
• An accounting of any speeding, hard breaking, and sharp accelerations

Source: https://www.nytimes.com/2024/03/11/technology/carmakers-driver-tracking-insurance.html

The OnStar class action lawsuit has become a topic of considerable discussion within the OnStar community. This lawsuit is being considered due to the 2G network sunset that has adversely affected numerous loyal GM customers. The decision to sunset the 2G network, pivotal for OnStar services, underscores the complex interplay between technology advancements and consumer rights.

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General Motors Reveals Data Collection and Distribution Practices

On March 20, 2024, General Motors (GM) released a press statement acknowledging that it had been gathering driver information and distributing it to external data analysis firms, including LexisNexis and Verisk Analytics. GM indicated it would terminate these collaborations after customers expressed privacy concerns regarding data collected through its OnStar Smart Driver program.

The information-sharing practice, which encompassed data on acceleration, braking, speed, and location tracking, reportedly influenced insurance premiums, frequently without explicit driver authorization.

Under mounting pressure, GM declared it would not only end these external partnerships but also shut down the OnStar Smart Driver program throughout its vehicle lineup, and begin removing enrolled customers in the upcoming weeks.

November 1, 2024 Update: Judge Thrash released a case management directive on Thursday, establishing a schedule to handle matters shared across all General Motors OnStar litigation. The directive outlines critical deadlines including a Master Consolidated Complaint submission by December 13 and subsequent stages such as planned discovery and dismissal motions, leading to the initiation of fact discovery by mid-2025, projected to continue through at least 2026.

BREAKING August 14, 2024 – The State of Texas Sues GM.

Texas has sued General Motors for allegedly installing technology on over 14 million vehicles to collect driver data without consent and sell it to insurers and other companies. The lawsuit stems from a probe into automakers’ data collection practices.

GM reportedly compiled “Driving Scores” on 1.8 million Texas drivers, assessing habits like speeding and late-night driving. Insurers could use this data for premium and coverage decisions.

The technology was allegedly installed in most GM vehicles from the 2015 model year onward. Dealers reportedly pressured consumers to enroll in OnStar diagnostic products that collected the data.

Texas Attorney General Ken Paxton stated, “We will hold them accountable for violating Texans’ privacy and breaking the law.”

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UPDATE: June 12, 2024 –The plaintiffs will have their suits consolidated in Georgia federal court, the Judicial Panel on Multidistrict Litigation ruled yesterday (June 11). Seven current cases from California, Florida, Michigan, New York and Pennsylvania, and any potential tag-along actions, to be centralized in the Northern District of Georgia before U.S. District Judge Thomas W. Thrash Jr. 

The panel said last Friday that the Northern District of Georgia is appropriate because that is where LexisNexis is headquartered.

The core issue of the OnStar class action is: “These putative class actions share complex factual questions arising from allegations that General Motors equipped its vehicles with sensors and computer modules to collect information about personal driving behavior, and that it sold that information to data analytics companies like LexisNexis and Verisk, which then created reports of individuals’ driving history and sold them to automobile insurance providers.”

The Case is: Consumer Vehicle Driving Data Tracking Litigation, MDL number 3115, in the U.S. District Court for the Northern District of Georgia. 

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May 28, 2024 — Martin Schmidt, lead plaintiff and owner of The Schmidt National Law Group has formally filed the General Motors LLC; OnStar LLC; And LexisNexis Risk Solutions Inc. Class Action Lawsuit with co-council the Schlesinger Law Office. The case number is: Case 2:24-cv-02560 filed in the United States District Court, Central District of California Western Division.

If you were unaware that OnStar has collected data from your car and sold your data, we intend to hold them responsible.

Key Litigation Question for OnStar Users: Did you drive an OnStar equipped car for 90 days, then see either your insurance premium increased, or had your insurance policy canceled or policy denied? Or did you experience a different type of manipulation of your policy? We want to hear from you, contact the Schmidt National Law Group today at 1-800-631-5656 for a free case review of the situation.

This blog post will explore the allegations surrounding the lawsuit, delve into the specifics of the OnStar Smart Driver program, and examine the legal and privacy concerns it raises. By analyzing these aspects, readers will gain insight into the broader implications of technology on consumer rights and insurance rates.

The Allegations Against OnStar/GM

• Sensitive Data Sharing Without Consent:
  • General Motors (GM) and OnStar, along with LexisNexis Risk Solutions, are under scrutiny for allegedly sharing drivers’ sensitive data, including mileage, speed, braking, and acceleration details, without obtaining consent from the drivers.
  • This data is utilized by LexisNexis to generate a ‘risk score’ for insurers, which could lead to increased auto insurance premiums or outright denial of coverage for the drivers involved.
• Legal Implications and Investigations:
  • The core of the investigation revolves around whether the sharing of such sensitive data without proper disclosure or consent breaches state and federal laws.
  • Affected drivers, particularly those who have experienced a hike in auto insurance rates or have been denied coverage after purchasing GM vehicles, are being encouraged to come forward.
• Consumer Impact and Legal Actions:
  • The lawsuit alleges significant impacts on consumers, including increased insurance rates, challenges in obtaining car insurance, and an invasion of privacy and peace of mind.
  • Legal actions seek not only damages for those affected but also aim to halt OnStar’s data collection practices and require the deletion of any data already shared without consent.

OnStar Smart Driver Program

The OnStar Smart Driver Program, accessible to members in the United States, offers a unique approach to driving analytics without the necessity of a paid service plan. Membership to this program is included for up to a decade with Connected Access, ensuring there’s no additional charge for enrollment, provided an active Connected Access Plan is in place. Compatible with most newer GM vehicles, the program allows members to enroll through their vehicle’s mobile app, streamlining the process for user convenience.

Upon consent, Smart Driver collects specific driving behavior data, such as hard braking and acceleration (speeding) events, time spent idle, speeds exceeding 80 miles per hour, trip occurrences, and the number of miles driven.

This data collection starts with every ignition cycle, ensuring comprehensive monitoring of driving habits. Members have the privilege to view their driving performance through the Mobile app, where they can access their Most Recent Trip, Daily, Weekly, or Monthly scores in the Driving Activity view. By selecting the calendar icon, members can delve into trip details including hard braking, hard acceleration, late-night driving, distance driven, fuel economy, average speed, and instances of speed over 80 mph for the selected date range.

For those seeking detailed insights into their driving patterns, the program provides options to pull a detailed log of Smart Driver information for each day of the month. Members inquiring about obtaining a detailed report of their OnStar Smart Driver activity have access to their Smart Driver information for the current day and an overall monthly summary, offering a comprehensive overview of their driving habits.

Legal and Privacy Concerns of the OnStar System.

OnStar’s Extensive Data Collection Practices:

• Types of Collected Information: OnStar collects a wide array of personal information through its connected services in GM vehicles, including but not limited to identifiers, personal and commercial information, internet activity, geolocation data, and inferences to create consumer profiles.
• Sources of Information: This data is sourced directly from consumers, automatically through product or service interactions, GM dealers, licensors, service providers, marketing partners, and third-party sources.
• Use and Sharing of Information: GM uses this information for various purposes such as improving products and services, account administration, and sharing with third parties like service providers, emergency services, marketing partners, and research institutions.

Legal Implications of the OnStar Class Action Lawsuits:

1. Current OnStar Filed Lawsuits: The class action lawsuit led by Plaintiff Victoria Ramirez in California federal court highlights serious concerns, asserting claims for violation of the Electronic Funds Transfer Act, California’s Unfair Competition Law, and Consumer Legal Remedies Act.
2. Claims and Representations: Another notable lawsuit filed by Romeo Chicco against General Motors and LexisNexis Risk Solutions alleges violations of state and federal statutes, including the Fair Credit Reporting Act and Florida’s Deceptive and Unfair Trade Practices Act.
3. Current Litigation Status: These lawsuits are in varying stages of litigation, with courts allowing certain claims to proceed, indicating the gravity of the legal concerns surrounding OnStar’s data handling practices.

Privacy Concerns and Consumer Rights for OnStar Users:

• Intrusive Data Collection: The detailed nature of the data collected by OnStar raises significant privacy concerns, as it includes sensitive information like geolocation and internet activity.
• Consent and Disclosure: Questions arise regarding the adequacy of consent obtained from consumers and the transparency of OnStar’s data sharing practices.
• Impact on Consumers: The lawsuits underscore the potential impacts on consumers, including increased insurance rates and concerns over privacy and autonomy.

Legal Ramifications for OnStar and Other On-board driving Apps.

Through the course of this post, we’ve dissected the multifaceted OnStar class action lawsuit, unfolding its implications on consumer rights and privacy. The focal points encompass the lawsuit’s allegations concerning the unauthorized sharing of sensitive driver data by General Motors and OnStar, the operational details of the OnStar Smart Driver program, and the overarching legal and privacy concerns.

These elements collectively underscore the complex terrain of advancing automotive technologies intersected with personal data security and consumer trust. Ultimately, the discussion unravels the probable consequences of data sharing practices on insurance rates and the legal frameworks guiding such actions.

The legal proceedings and investigations into OnStar’s data collection and sharing practices serve as a pivotal moment for addressing significant privacy and consumer rights issues within the automotive industry. Highlighting the necessity for transparency and consent in data handling processes, this controversy underlines the broader implications for consumer trust and the integrity of automotive services in the digital age. As the situation unfolds, it beckons further scrutiny and possibly, regulatory revisions to safeguard consumer interests in an increasingly connected world. This dialogue is far from concluded, prodding stakeholders and consumers alike towards advocacy for clearer guidelines and practices in the integration of technology within our daily conveyances.

The Schmidt National Law Group is currently investigating whether GM, OnStar, and LexisNexis may have violated various state and federal laws by selling this highly sensitive data without adequate disclosure or consent. If their practices are found unlawful, you may be entitled to cash compensation and an injunction requiring changes to the companies’ privacy practices. Contact us today at 1-800-631-5656 or use the 100% secure intake form on this page.

Sources:

https://www.insurancejournal.com/news/southeast/2024/03/15/765068.htm

https://community.onstar.com/t5/Technical-and-Service-Support/Class-Action-Lawsuit/td-p/736

https://casetext.com/case/robinson-v-onstar-llc-3

New York Times: https://www.nytimes.com/2024/03/11/technology/carmakers-driver-tracking-insurance.html

OnStar Class Action Lawsuit updated on December 18, 2024