Iowa Attorney General Brenna Bird has filed a lawsuit against General Motors LLC (GM) and OnStar LLC, alleging the companies unlawfully collected and sold driver data from Iowans without their knowledge or consent. The petition, filed in Polk County District Court, claims the automaker violated the Iowa Consumer Fraud Act by engaging in deceptive business practices. According to the lawsuit, GM installed vehicle systems beginning in 2015 that tracked speed, seatbelt use, driving behavior, and location. The state alleges the company then sold that information to third-party data brokers, who then resold it to insurance companies. Bird says that data was then used to raise premiums, deny coverage, or cancel policies without drivers’ knowledge. The lawsuit also contends consumers were misled into believing enrollment in OnStar was required to access certain safety features and that GM failed to clearly disclose data collection tied to its mobile apps and connected vehicle services. Bird is seeking restitution for affected Iowans, civil penalties, and a court order barring the companies from continuing the alleged practices in Iowa. A link to the complete, 26-page petition is included with this story on our website.
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