Montana AG Austin Knudsen Is Going After GM and OnStar for Turning Chevy and GMC Trucks Into Data Collection Devices
Montana AG sued GM and OnStar, alleging they secretly collected and sold driving data from millions of GM vehicles to insurers, leading to rate hikes. The data included GPS, speed, and driving habits, collected via OnStar's Smart Driver program. GM discontinued the program in 2024 and settled with the FTC, but Montana's lawsuit seeks relief for affected consumers.
How this was made
The 30-second read
Why it matters
Legal exposure could lead to fines, increased compliance costs, and a drop in consumer confidence for GM's connected services.
Market read
First report of a state‑level enforcement action against GM; likely to affect GM stock and the broader auto‑tech sector.
What to watch
Potential for settlement negotiations to limit exposure; impact on insurance partners not fully quantified.
Background
The lawsuit follows a 2026 FTC settlement that barred GM from sharing driver data without consent. The complaint alleges past violations dating back to 2015.
Ticker impact
Montana Attorney General filed a lawsuit alleging GM and OnStar illegally collected and sold driver data, creating potential liability.
downward pressure as investors price in potential penalties and legal costs
Enforcement action against a major automaker typically triggers short-term sell pressure.
Market effects
Could prompt broader scrutiny of connected‑vehicle data practices across the auto sector.
May affect US auto stocks and insurers tied to usage‑based pricing.
Highlights regulatory risk for global automakers using telematics.
Counterpoint
If GM successfully argues compliance with FTC settlement, the lawsuit may have limited financial impact.
Key entities
- CompanyGeneral Motors
US‑listed automaker accused of illegal data collection.
- RegulatorMontana Attorney General
State official filing the lawsuit.
