GM Halts Sharing Driver Data with Brokers and Insurers After Lawsuit

### General Motors Ends Data Sharing with Brokers After Lawsuit

In response to a recent lawsuit and investigation by The New York Times exposing the concerning practice of automakers sharing customer driving data with insurers, General Motors (GM) has decided to sever ties with data brokers LexisNexis and Verisk.

#### Lawsuit Filed Against GM, OnStar, and LexisNexis

The class-action lawsuit, filed by Romeo Chicco of Florida, alleges that GM provided data about his driving habits through his Cadillac to LexisNexis, resulting in increased insurance premiums due to details about his speeding, braking, and acceleration being shared with insurers.

#### GM’s Response

GM spokesperson Kevin Kelly emphasized that customer trust is a priority for the company and that they are actively reviewing their privacy processes and policies. This decision comes after a man named Kenn Dahl felt betrayed by GM when his driving data was shared with LexisNexis, leading to higher insurance premiums.

#### Privacy Concerns and Legal Ramifications

Chicco’s case is just the beginning of potential lawsuits over data handling practices by automakers. Former FTC director David Vladeck highlighted the breach of confidentiality and financial consequences resulting from such actions. Other automakers like Honda, Acura, Kia, Hyundai, and Mitsubishi have also been implicated in similar data-sharing practices.

#### Conclusion

The move by GM to stop sharing driver behavior data with brokers and insurers marks a significant step towards protecting customer privacy and rebuilding trust. As more cases emerge, it is clear that transparency and accountability in data handling are crucial for maintaining consumer confidence in the automotive industry.

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