Nebraska AG sues GM over illegal driver data sale

In July 2025, Nebraska's Attorney General Mike Hilgers announced a lawsuit against General Motors (GM) and its subsidiary OnStar for allegedly mishandling and profiting from the sensitive driving data of Nebraskans without their consent. The lawsuit, filed in the Nebraska District Court of Lancaster County, claims that GM collected and processed driving data from its telemetry systems in vehicles since at least 2015. This data, which included information on speed, driving habits, and location, was then allegedly sold to third-party brokers who created 'driving scores' and sold them to insurance companies. According to Hilgers, these driving scores were misused by insurance companies to raise rates and deny coverage to drivers, effectively punishing them for their driving habits without them being properly informed. The lawsuit highlights deceptive practices by GM, including misleading consumers about their data collection methods and making it seem mandatory to enroll in OnStar services in order to access basic safety features. These practices misled Nebraskans into unknowingly consenting to the collection and sale of their personal data. The complaint calls for civil penalties and restitution for those affected, as well as an injunction against GM and OnStar from continuing their current data practices in the state. In defense, a spokesperson for GM stated their commitment to consumer privacy and indicated the company would review the complaint thoroughly. This legal action mirrors a recent initiative from the Federal Trade Commission, which had also taken action against GM and OnStar regarding similar allegations involving consumer data usage. The fallout from this lawsuit could have far-reaching implications for how automotive companies handle consumer data and their transparency regarding data practices. Hilgers's statement emphasizes the need for accountability among large companies that may mislead customers about their data usage. The case also comes at a time when consumer protection laws are gaining scrutiny in the face of increasing data privacy concerns across various industries, highlighting a growing demand for rule changes that prioritize consumer rights over corporate profits.