A US law firm said it was investigating automaker General Motors and its OnStar subsidiary.
A class action filed at the US District Court of Southern Florida named General Motors, OnStar and LexisNexis Risk Solutions as defendants.
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The filing states the class action has been brought to challenge the actions “regarding erroneous reports of derogatory and negative driving information made without plaintiff’s knowing consent.”
A New York Times investigation revealed drivers’ data was being collected for insurers to use as one factor of many to create more personalised insurance coverage.
GM and OnStar reportedly sold drivers’ data to LexisNexis Risk Solutions, a New York based global data broker which tracks consumers’ driving records.
LexisNexis, in turn, analysed this data to create a ‘risk score’ which it allegedly provided to insurers.
As a result, drivers saw substantial increases to their auto insurance premiums. In some instances, this led insurers denying drivers auto insurance altogether.
Law firm Schubert Jonckheer & Kolbe said: “If their practices are found unlawful, [drivers] may be entitled to money damages and an injunction requiring changes to the companies’ privacy practices.”
