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Texas requires 6 car manufacturers to reveal if they sell driving data without owners’ consent


Attorney General Ken Paxton’s office in Texas is investigating six automakers for potentially breaking state law by selling drivers’ data without their knowledge. The investigation comes after media reports highlighted the invasive collection and sales of driving data without customer consent. Texas has laws against deceptive trade practices, and Paxton has deemed the reports worthy of a thorough investigation. The demand letters sent to car manufacturers seek information on the collection and sharing of vehicular data, including details on data points collected and agreements to share data.

The investigation raises concerns that driving data could be used to raise insurance premiums for drivers, even if they have reported no accidents. In some cases, drivers saw their insurance rates spike by more than 20% due to data collected by third-party companies like LexisNexis. Automakers like Mitsubishi, GM, Honda, Subaru, and Volvo are cooperating with the investigation and have stated that they comply with all applicable laws regarding data collection and sharing.

The demand letters also target third-party data companies like Verisk Marketing Solutions, Arity LLC, and LexisNexis Risk Solutions Inc. for documents related to their data collection practices. The investigation aims to determine if car buyers were adequately informed about data collection and if their consent was obtained properly.

Paxton’s office has warned that failure to comply with the requests for information could result in fines or jail time. The investigation sheds light on the potential privacy concerns surrounding the collection and sharing of driving data in modern vehicles and the need for transparency and consent from consumers.

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Photo credit www.dallasnews.com

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