General Motors is facing legal action over allegations of gathering and selling customer data without consent, potentially leading to a class action lawsuit.
A recent investigation revealed that GM and its partners, including LexisNexis, have been accused of obtaining driving data from vehicle owners, which has resulted in the denial of insurance coverage or increased premiums.
The inquiry was sparked when Chevrolet Bolt owner Kenn Dahl discovered that his insurance renewal premium had significantly risen based on his LexisNexis driving report. Similar cases emerged, including that of Cadillac XT6 owner Romeo Chicco, who was reportedly denied insurance by multiple companies due to data collected by LexisNexis.
Upon requesting the data collected, both Dahl and Chicco received detailed reports outlining driving behavior, such as speed and braking patterns, sourced from their vehicles via GM’s OnStar connected services system.
Chicco, in particular, filed a federal complaint seeking class-action status against GM, alleging that the company shared data with LexisNexis without proper consent.
While GM maintains that participation in its OnStar Smart Driver program is optional and provides benefits like insurance quotes based on driving behavior, critics argue that the enrollment process lacks transparency.
LexisNexis declined to comment on the potential lawsuit, while a GM spokesperson reiterated the voluntary nature of the OnStar Smart Driver service.
Although OnStar was slated for introduction in Australia through the Holden Equinox in 2018, logistical challenges and Holden’s subsequent closure delayed its implementation.
While GM continues to sell vehicles like the Chevrolet Silverado and Corvette in Australia, OnStar is not currently available in these models. The potential introduction of Cadillac or GMC vehicles to the Australian market may determine the future availability of OnStar services locally.
