General Motors Forced to Fight Driver Data Claims After Court Ruling
The Fight Over Driving Data
The court has ruled that the lawsuit against General Motors over alleged data privacy violations involving OnStar can proceed. Car Complaints reported that about 30 class actions were consolidated into a single lawsuit, though some claims were dismissed.
For context, GM is being sued for allegedly collecting vehicle and driver data through OnStar and selling it to third parties, including insurance companies. OnStar is a connected service that provides functions such as smartphone controls and vehicle diagnostics, which came free with every vehicle purchase in 2015. The issue, according to the plaintiffs, is that GM failed to adequately disclose that part of the subscription involved gathering driver data.
Driving Data Has Value
Some of that data reportedly includes instances of "hard braking, hard acceleration, driving without a seat belt, driving over 80 miles per hour, and late-night driving." Insurance companies could use this information to increase rates or deny coverage based on a car owner's driving behavior. There is also the cybersecurity concern, especially if that data is hacked and leaked.
In response, General Motors argued that vehicle owners consented to data collection by using OnStar, and that the terms of service still applied even if customers did not read them. Moreover, the Michigan-based automaker claimed it did not violate privacy because OnStar subscribers were driving in public rather than "in seclusion."
Nonetheless, the court reportedly allowed more than 40 claims against GM to proceed, including allegations involving the Stored Communications Act, Fair Credit Reporting Act, and Federal Wiretap Act.
The Tradeoff of Modern Technology
This case is similar to a lawsuit against Toyota, in which a 2021 RAV4 owner accused the Japanese automaker of selling driver data to third-party companies through Connected Services, which works much like OnStar. The issue raises broader privacy concerns, especially as more vehicles rely on data to enable smart features such as advanced driver-assistance systems, which use cameras and sensors to detect potential hazards. Perhaps the dispute could force automakers to be clearer about consent, especially as connected-car features are undeniably useful in making car ownership more convenient.
In fact, OnStar's top bundle includes Super Cruise, which allows GM vehicles like the Chevrolet Tahoe to use hands-free driver assistance technology that can help reduce driver fatigue. But for interested customers, it is worth noting that the Federal Trade Commission has already finalized an order banning GM and OnStar from sharing geolocation and driver behavior data with consumer reporting agencies for five years. It also requires the company to provide greater transparency to customers.
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This story was originally published May 6, 2026 at 6:00 PM.