Attorney General Brenna Bird announced that her office has filed a lawsuit against General Motors LLC and OnStar LLC for unlawfully collecting and selling data from Iowans without their knowledge or consent. The lawsuit, filed in Polk County District Court, asserts that General Motors engaged in deceptive business practices in violation of the Iowa Consumer Fraud Act.
According to the lawsuit, General Motors installed systems in its vehicles that tracked a wide array of data points, including speed, seatbelt usage, driving habits, and location since 2015. General Motors then sold that data to third-party data brokers, who later sold it to insurance companies. The insurance companies used that data to raise rates, deny coverage, or cancel policies. That was all without Iowans knowing.
The petition asserts:
- GM deceived consumers when they were buying a vehicle by misrepresenting the nature and scope of the OnStar-connected services.
- Consumers were often misled into believing enrollment in OnStar was mandatory to access basic safety features.
- GM failed to adequately disclose that enrollment in its mobile apps or Connected Vehicle Services would allow the company to collect and sell detailed personal data.
“Iowans deserve to know who is collecting, using, and selling their data and why,” said Attorney General Bird. “They should also be able to trust a company as large and well-known as General Motors. GM was not honest with Iowans who were spending hard-earned money to buy a dependable vehicle—and they did it to make more money. That is wrong, and our office is holding them accountable.”
The petition seeks restitution for Iowans who were impacted, civil penalties, and the prevention of GM and OnStar continuing these practices in Iowa.
Read full petition here.
