Driving the news: Nebraska is suing General Motors $GM ( ▼ 1.31% ) and OnStar for secretly harvesting driving data from millions of vehicles and selling it to insurance companies.
For context: Attorney General Mike Hilgers claims GM collected telematics data through OnStar and created driver behavior profiles that insurance companies used to jack up premiums or cancel coverage entirely.
Why it matters: This isn't GM's first time getting caught with their hand in the data cookie jar. A New York Times investigation last year exposed similar practices, forcing GM to shut down their Smart Driver program and face federal heat from the FTC. Nebraska's lawsuit adds a new wrinkle—-alleging GM tricked customers into OnStar services by claiming safety features wouldn't work without them, while dealership staff got bonuses for enrolling unsuspecting buyers.
What we're watching: GM already agreed to stop selling driving data for five years under a federal consent order, but state lawsuits like Nebraska's could pile on additional penalties and restrictions.
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