Latest news with #Hilgers
UPI
09-07-2025
- Automotive
- UPI
Nebraska sues GM, OnStar over selling driver data without consent
July 9 (UPI) -- Nebraska Attorney General Mike Hilgers has filed a lawsuit against General Motors and OnStar, accusing the automaker and its subsidiary company of selling the driving data of Nebraskans, without the drivers' consent, which was then used to affect insurance rates and coverage. The lawsuit was filed Tuesday in the Nebraska District Court of Lancaster County, seeking a ruling that the scheme illegal under the state's consumer protection and deceptive trade practices laws, and requesting civil penalties. "Nebraskans deserve to work with companies that are truthful and honest about what they are doing," Hilgers said in a statement. "That is not what happened here, and we filed this lawsuit because one large company decided that it wouldn't honestly tell Nebraskans that their data was going to be used to impact their insurance rates." According to the court document, since at least 2015, GM and OnStar have collected and analyzed vehicle usage data, which they then processed and sold to third parties without consent. Those third parties then sold that information to insurance companies, which could use it against the Nebraskan drivers to increase their insurance rates or outright cancel their policies outright. GM told those third-party companies that vehicle purchasers had consented to the collection and sale of their data, but Nebraska argues that GM used "deceptive, unconscionable and unlawful tactics" to enroll customers in its OnStar data collection services. "GM's deceptive and unlawful tactics included overwhelming and misleading vehicle purchasers (or lessees) with pages of deceptive, inconspicuous and materially misleading disclosures about OnStar products, including product descriptions and privacy policies that failed to adequately disclose how GM would use its customers' driving data," it said. General Motors is a Detroit-based automaker behind iconic American car brands Buick, Cadillac, Chevrolet and GMC, while its Delaware-based subsidiary, OnStar, is a subscription-based communications company whose services include vehicle security and emergency assistance. The lawsuit states GM had 19 suppliers and 54 car dealerships that sold nearly 18,900 vehicles in Nebraska in 2023. The case comes seven months after the Federal Trade Commission issued its first-ever action related to vehicle data, banning GM, OnStar and its other subsidiaries from disclosing consumers' geolocation and driver behavior data to consumer reporting agencies for five years. In August, Texas Attorney General Ken Paxton filed a similar lawsuit to Nebraska's against GM over its selling of Texas drivers' data.
The Hill
08-07-2025
- Automotive
- The Hill
Nebraska sues GM, OnStar over alleged sale of driver data recorded by vehicle tech
LINCOLN, Kan. (KSNW) — The Nebraska attorney general's office said Tuesday it has filed a lawsuit against General Motors (GM) and OnStar for allegedly collecting, processing and selling sensitive driving data from Nebraskans without their knowledge or consent. State Attorney General Mike Hilgers accuses GM and OnStar of installing telematics systems in their vehicles that collect data, including speed, seatbelt usage, driving habits, and location. That data was then allegedly sold to third-party data brokers who used it to create driving scores for individual drivers. Those scores were then sold to insurance companies, who used them to raise rates, deny coverage or cancel policies, according to the lawsuit. Nebraska drivers were never informed that their data was being collected or used against them. Among the key allegations: 'Nebraskans deserve to work with companies that are truthful and honest about what they are doing,' says Attorney General Hilgers. 'That is not what happened here, and we filed this lawsuit because one large company decided that it wouldn't honestly tell Nebraskans that their data was going to be used to impact their insurance rates. This is wrong. Our office will hold companies that mislead Nebraskans accountable, no matter how large.' You can read the full complaint below. When asked for comment on the lawsuit, a spokesperson for GM told Nexstar's KSNW, 'We remain committed to protecting consumers' privacy and will conduct a review of the complaint.' Nebraska is seeking civil penalties, restitution for affected Nebraskans, and an injunction to prevent GM and OnStar from continuing these practices in the state. GM is not the only company accused of misusing telematics programs. A 2024 investigation by the New York Times found instances of drivers who had not knowingly opted in to a telematics program being tracked. Data recorded without their consent was sold to third parties, sometimes resulting in a spike in insurance premiums, according to the Times.
Yahoo
08-07-2025
- Automotive
- Yahoo
Nebraska sues General Motors for allegedly collecting, selling driver data without consent
Attorney General Mike Hilgers speaks during a news conference in Lincoln. May 13, 2024. (Zach Wendling/Nebraska Examiner) LINCOLN — Nebraska Attorney General Mike Hilgers on Tuesday announced that his office is suing General Motors for allegedly collecting and selling data on drivers without their consent for at least the past decade. The 40-page lawsuit, filed Tuesday morning in Lancaster County District Court, alleges that Michigan-based General Motors and associated OnStar products collected driver data and sold it to third-party companies without drivers' consent since at least 2015. In turn, that data would be sold to insurance companies, sometimes leading to increased rates or canceled insurance. Collected data allegedly included how fast someone was driving, how hard stops were, geolocation and whether seat belts were worn. 'We know that you can actually do what these insurance companies and what companies like GM want to do legally, through consent, through notice, through disclosures,' Hilgers told reporters. 'It's not what they did here.' The lawsuit alleges an 'aggressive, concerted effort' to enroll purchasers into GM products, which Hilgers said led to some drivers being opted into the products without their consent in what he termed 'emotional blackmail' — that OnStar and other services were necessary for family or personal safety or that the data wouldn't be shared except in 'limited circumstances.' According to the lawsuit, General Motors has 54 dealerships in Nebraska, does business with 19 Nebraska suppliers and has 16 Nebraska-based employees. While Hilgers couldn't say how many Nebraskans were impacted over the past 10 years, the lawsuit says GM delivered nearly 19,000 vehicles to the state in 2023. General Motors began partnering with car insurance companies in 2005, the lawsuit continues, to allow drivers to opt in for data collection so they could receive a discount for 'good' driving. But Hilgers' office says such devices became 'unnecessary' over time even as the products have been installed by default in almost all new GM vehicles since 2015. Hilgers said an attorney in his office combed through all of GM's privacy terms and conditions and found 'nothing that we think clears up what we think is very misleading, very deceptive activity.' The Nebraska Examiner has reached out to General Motors for comment on Hilgers' lawsuit. The company had no immediate reply. Asked whether Hilgers' office had contacted GM or OnStar before Tuesday, Hilgers said: 'They're aware of our investigation.' He said part of the lawsuit seeks to understand the 'full scope' of how Nebraskans were harmed to craft a remedy specific to those consumers. The lawsuit by the Nebraska Attorney General's Office follows a nearly identical lawsuit by Texas Attorney General Ken Paxton filed in August. The Federal Trade Commission also proposed a settlement against GM in January. The company said it would 'go above and beyond existing law' but mirror new protections the company had been rolling out to give customers 'more transparency and control.' FTC Chair Lina Khan in January said GM collected data sometimes as often as every three seconds. The FTC has not yet voted to finalize the settlement order, a spokesperson confirmed Tuesday. The Nebraska lawsuit alleges 'deceptive' and 'unconscionable' trade practices by GM and asks for a jury trial with the following requested relief: Civil penalties of $2,000 per violation of Nebraska's Uniform Deceptive Trade Practices Act or its Consumer Protection Act. A permanent ban on GM and others engaging in such conduct. Any money acquired as a result of the violations to be restored to impacted consumers. State legal fees. 'Any other relief' the court deems 'just and equitable.' In addition to the AG's Office, Nebraska is working with three attorneys based out of Seattle and Houston from the Susman Godfrey law firm. 'We filed this lawsuit because one large company decided that it wouldn't honestly tell Nebraskans that their data was going to be used to impact their insurance rates. This is wrong,' Hilgers said. 'Our office will hold companies that mislead Nebraskans accountable, no matter how large.' nebraska-v-gm-court-filing SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
13-06-2025
- Business
- Yahoo
Nebraska AG Sues Temu Over Alleged Consumer Protection Violations
Nebraska Attorney General Mike Hilgers announced Thursday that his office had filed a lawsuit against low-priced e-commerce platform Temu. The complaint alleges a host of consumer protection violations, including misrepresentation of goods, greenwashing, embedding illegal malware into consumers' personal devices and sharing Nebraskans' data with the Chinese Communist Party. More from Sourcing Journal France Moves to Curb 'Ultra-fast' Fashion With Bill Targeting Shein and Temu Federal Appeals Court Grants Trump Temporary Relief on Tariff Ruling Labor Department, Which 'Ridiculed Supporting Worker Rights Abroad,' Responds to ILAB Lawsuit The crux of the complaint is centered around consumers' data. Hilgers alleges in the complaint that Temu has illegally 'siphoned' personal information about Nebraskan consumers, leaving them at risk. Hilgers said Temu's famously low-cost products 'come with a one-two punch to Americans.' 'Temu's app operates as malware; its code is designed to exfiltrate an enormous amount of sensitive information, from access to a user's microphone, pictures and messages, to information sufficient to track their movements,' Hilgers alleged in the complaint. 'This sensitive information that is unlawfully exfiltrated to Temu naturally flows to its powerful patron—the Chinese Communist Party. In the United States's great power competition with China, Temu presents yet another way in which China can extract and exploit information about Americans for its own purposes.' Temu was founded in China and is a subsidiary of PDD Holdings, but its headquarters are now located in Boston. A spokesperson for Temu said the claims made in the complaint are untrue. 'The allegations in the Nebraska Attorney General's lawsuit are without merit and appear to be a rehash of misinformation circulated online, much of it originating from a short-seller. We categorically deny the allegations and will vigorously defend ourselves against them,' the spokesperson told Sourcing Journal via email. This isn't the first time Temu has come under fire for the way it handles consumer data; in June 2024, Arkansas Attorney General Tim Griffin announced that the state had filed a lawsuit against Temu, calling it 'a data-theft business that sells goods online as a means to an end.' Last year, Republican members of Congress asked the U.S. Securities and Exchange Commission (SEC) and the Federal Bureau of Investigation (FBI) to pursue further information about Temu and its business practices. Throughout the rest of the complaint, Hilgers goes on to allege that the means by which Temu entices Nebraskan consumers are also unlawful. He alleges that the company uses greenwashing to mislead consumers and that it deceives consumers with its local warehousing business model, leading them to believe that they are purchasing from local businesses. 'Temu misleadingly uses the 'local' tag for products shipped from warehouses located in the United States,' Hilgers contended. 'These products could originate from foreign countries, such as China, but Temu passes them off as local goods because the products are temporarily stored for distribution in the United States.' In this section of the complaint, Hilgers is referring to the fact that Temu has been making a push for what it refers to as 'local warehouses.' These warehouses, located in markets of interest, like the U.S. and the EU, make it possible for the company to get products to consumers' doorsteps faster than sending them directly from China. While it has looked to onboard U.S. sellers, many of the sellers who use these local warehouses are based in China. Hilgers further said that the platform is 'awash in products infringing copyrights and other intellectual property.' In the complaint, the attorney general states that Nebraska believes Temu is in violation of multiple state laws, including its Uniform Deceptive Trade Practices Act and its Consumer Protection Act. Hilgers asks the judge overseeing the case to enjoin Temu from 'continuing to engage in such unlawful acts and practices' and to award affected Nebraskan consumers compensation. Hilgers said the lawsuit is intended to shield the state's residents from unlawful company conduct. 'Temu is putting Nebraskans' privacy at risk and running a platform rife with deceptive listings, unlawful promotional practices, and products that rip off Nebraska brands and creations,' he said in a statement. 'Our office will hold Temu accountable for its exploitation of Nebraska consumers, brands and creators and fight hard for honesty and safety in the online marketplace.'
Epoch Times
07-05-2025
- Automotive
- Epoch Times
California Agrees to Drop Electric-Truck Mandates in Legal Settlement
State attorneys general suing California said on May 6 that the state has agreed, as part of a legal settlement, to repeal electric-truck mandates that would have compelled trucking companies nationwide to scrap internal-combustion trucks. California wants to mandate 100 percent electric vehicles by 2036, and critics say that because of the size of the state's economy, the largest in the country, the policy has the effect of forcing electrification of the nation's trucks. Given the influence of the state's policies, several other states have already adopted its regulatory framework for motor vehicles. California has said its policies on motor vehicles are needed to drive down demand for liquid fuel and help the climate. The shift away from the truck mandate was articulated in an Lead Defendant Steven S. Cliff is the executive officer of the California Air Resources Board (CARB). Related Stories 4/23/2025 2/19/2025 Nebraska, Oklahoma, and 15 other states had sued to challenge a group of California regulations known as Advanced Clean Fleets. Those rules would have required some trucking companies that operate in California to retire their internal-combustion trucks and move to electric trucks, which they argued were more expensive and less efficient, Nebraska Attorney General Mike Hilgers said in a statement provided to The Epoch Times. As part of the settlement, California regulators have agreed to begin rulemaking proceedings to rescind the electric truck mandate. The regulators have acknowledged they cannot enforce the planned 2036 ban on the sale of internal-combustion trucks unless the ban receives a waiver from the U.S. Environmental Protection Agency under the federal Clean Air Act, Hilgers said. 'The tide is starting to turn, as California has agreed to take the necessary steps to withdraw the Advanced Clean Fleets Rule,' Hilgers said. 'This settlement is a huge win for everyone in Nebraska, from our outstanding logistics industry that is critical to the Nebraska economy, for consumers who would have faced higher prices, and for the rule of law,' he said. Oklahoma Attorney General Gentner Drummond said the settlement 'is a victory for the free market.' 'The California mandates would have forced tremendous costs upon the commercial trucking industry and had far-reaching implications for consumers,' Drummond said in a statement provided to The Epoch Times. The settlement described in the court order states that CARB staff will move forward with a proposal to repeal the relevant part of the Advanced Clean Fleets regulation before the board in a public hearing to be held not later than Oct. 31. If the board approves the repeal, CARB staff will file a rulemaking action not later than Aug. 31, 2026. California agrees not to enforce the mandate while awaiting CARB taking action. The lawsuit will be held 'in abeyance,' or delayed during the CARB rulemaking process. The states will dismiss their legal complaint within 15 days after the repeal is finalized, the settlement states. The Epoch Times reached out for comment to California Deputy Attorney General Elaine Meckenstock, who was part of California's legal team in the lawsuit. No reply was received by publication time. Meanwhile, U.S. Supreme Court justices are currently considering whether to revive a lawsuit filed by energy companies that seek to challenge California's tough vehicle emissions standards. The case, Diamond Alternative Energy v. Environmental Protection Agency, was In April 2024, a federal appeals court found California had the authority to regulate tailpipe emissions. That court also held that the energy companies bringing the legal action could not demonstrate that they had standing to sue. Standing refers to the right of someone to sue in court. The parties must show a strong enough connection to the claim to justify their participation in a lawsuit. The companies argued that they would suffer economic harm if California were allowed to continue imposing vehicle emissions standards that are more stringent than those mandated by the federal government. The Supreme Court is expected to rule on the case by the end of June.
