When Romeo Chicco tried to get car insurance in December, he was turned down by seven different companies. When he finally got insurance, it was almost double what he previously paid. According to a federal complaint filed this week seeking class-action status, it was because his 2021 Cadillac XT6 had been spying on him.
Modern cars have been called “smartphones on wheels” because they are connected to the Internet and equipped with sensors and cameras. According to the complaint, a Liberty Mutual agent told Chicco that he had been rejected because of information contained in his “LexisNexis report.” LexisNexis Risk Solutions, a data broker, has traditionally monitored insurers on drivers' traffic violations, past insurance coverage and accidents.
When Chicco requested his LexisNexis file, it contained details about 258 trips he had taken in his Cadillac over the past six months. His record included the distance he had driven, when the trips began and ended, and a record of any speeding and harsh braking or acceleration. The data had been provided by General Motors, the manufacturer of his Cadillac.
In a lawsuit against General Motors and LexisNexis Risk Solutions filed in the United States District Court for the Southern District of Florida, Chicco accused the companies of violating privacy and consumer protection laws. The lawsuit follows a New York Times report that, unbeknownst to consumers, automakers have been sharing information about their driving behavior with the insurance industry, resulting in increases in insurance rates. for some drivers. LexisNexis Risk Solutions and another data broker called Verisk claim to have real driving behavior on millions of cars.
In his complaint, Chicco said he repeatedly called GM and LexisNexis to ask why his data had been collected without his consent. He was eventually told that his data had been sent through OnStar (GM's connected services company, which is also named in the lawsuit) and that he had enrolled in OnStar's Smart Driver program, a driver feedback feature. and digital badges for good driving.
Chicco said he had not signed up for OnStar or Smart Driver, although he had downloaded MyCadillac, a General Motors app, for his car.
“What no one can tell me is how I signed up,” Chicco told the Times in an interview this month. “Can you tell me how many times I accelerated hard on January 30 between 6am and 8am, but you can't tell me how I signed up for this?”
A GM spokeswoman, Malorie Lucich, previously said that customers signed up for SmartDriver in their connected car app or at the dealership, and that a clause in the OnStar privacy statement He explained that his data could be shared with “third parties.” When asked about the lawsuit, he said via email that the company was “reviewing the complaint” and did not comment, instead pointing to a statement the company previously made about the OnStar Smart Driver.
“GM's OnStar Smart Driver service is optional for customers,” the statement said. “Customer benefits include learning more about your safe driving behaviors or vehicle performance which, with your consent, can be used to obtain insurance quotes. Customers can also unsubscribe from Smart Driver at any time.”
LexisNexis Risk Solutions, which previously said it analyzed the type of driving data Chicco found in his record to create a risk score that it then sold to insurers, declined to comment.
“I would never have given permission for this data to become public,” Chicco previously said. Contacted after the lawsuit was filed, he said he had no comment.
David Vladeck, a Georgetown law professor who previously headed the Federal Trade Commission's consumer protection office, said the driving data the companies collected was considered very sensitive, meaning there should be a “clear notice.” to consumers and explicit consent for its collection. and sale.
Vladeck said he would expect an investigation by the FTC, as well as consumer lawsuits against automakers and data brokers.
“You just have to wait for the avalanche to come,” he said. “She's coming.”
