Privacy Concerns Arise as General Motors Allegedly Shares Chevy Bolt Owners' Driving Data with Insurers

General Motors (GM) has been tracking and selling the driving behavior data of Chevrolet Bolt owners to insurance companies without their knowledge or agreement, according to a privacy specialist who purchased the vehicle in December. The specialist, Kenn Dahl, found that his driving data was being collected and shared with insurers, leading to higher insurance premiums.

GM initially claimed the data collection was only for a "small population of customers," but further investigation revealed that many Chevy Bolt owners were enrolled in the OnStar Smart Driver program without their explicit agreement. The program shares detailed driving data with LexisNexis, a data broker that provides information to auto insurance companies to help determine rates.

Why this matters: The case highlights growing concerns over privacy and agreement in the age of connected cars and the Internet of Things (IoT). It raises questions about how much control consumers have over their personal data generated by smart devices and vehicles, and the potential consequences of that data being shared with third parties without clear agreement.

At least 10 federal lawsuits have been filed by Chevy Bolt drivers who claim they did not knowingly enroll in the Smart Driver program, yet had their driving data shared with LexisNexis. The plaintiffs allege this data sharing resulted in increased insurance premiums for them. GM and its co-defendants have denied the allegations, stating that OnStar users agree to data sharing as part of the service's terms and conditions.

Privacy Concerns: However, the lawsuits argue that the privacy statement is hidden and inconspicuous, making the data sharing scheme "deceptive, unfair and misleading to consumers." In response to the growing backlash, GM has reportedly discontinued its Smart Driver program and stopped the data sharing practice. The ongoing legal battle will likely set important precedents for the interpretation of agreement and privacy rights in the context of connected vehicles and smart devices.

"GM vehicle owners expect their personal information will be kept private and not shared with third parties without their agreement," said one of the Chevy Bolt owners who filed a lawsuit. As connected cars become increasingly common, the case underscores the need for clearer regulations and consumer protections around personal data collection and sharing by automakers and their partners.

Key Takeaways

• GM collected and sold Chevy Bolt owners' driving data to insurers without consent.
• Owners enrolled in OnStar Smart Driver program without explicit agreement, leading to higher premiums.
• Lawsuits allege GM's data sharing was "deceptive, unfair and misleading to consumers".
• GM has discontinued the Smart Driver program and stopped the data sharing practice.
• Case highlights need for clearer regulations on personal data collection by automakers.