Texas Sues General Motors, Alleging Illegal Selling of Driver Data

In a press release today, Texas Attorney General Ken Paxton said he has filed a lawsuit against General Motors, alleging the carmaker illegally collected and sold drivers’ data to insurance companies without their consent or knowledge. CNN reports: In car models from 2015 and later, the Detroit-based car manufacturer allegedly used technology to “collect, record, analyze, and transmit highly detailed driving data about each time a driver used their vehicle,” according to the AG’s statement. General Motors sold this information to several other companies, including to at least two companies for the purpose of generating “Driving Scores” about GM’s customers, the AG alleged. The suit said those two companies then sold these scores to insurance companies.

Insurance companies can use data to see how many times people exceeded a speed limit or obeyed other traffic laws. Some insurance firms ask customers if they want to voluntarily opt-in to such programs, promising lower rates for safer drivers. But the attorney general’s office claimed GM “deceived” its Texan customers by encouraging them to enroll in programs such as OnStar Smart Driver. But by agreeing to join these programs, customers also unknowingly agreed to the collection and sale of their data, the attorney general’s office said. “Despite lengthy and convoluted disclosures, General Motors never informed its customers of its actual conduct — the systematic collection and sale of their highly detailed driving data,” the AG’s office said in a statement. The filing can be read here (PDF).

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Locking Up Items To Deter Shoplifting Is Pushing Shoppers Online

Longtime Slashdot reader schwit1 shares a report from Axios: Locking up merchandise at drugstores and discount retailers hasn’t curbed retail theft but is driving frustrated consumers to shop online more, retail experts tell Axios. Retail crime is eating into retailers’ profits and high theft rates are also leading to a rise in store closures. Secured cases can cause sales to drop 15% to 25%, Joe Budano, CEO of anti-theft technology company Indyme, previously told Axios. Barricading everything from razors to laundry detergent has largely backfired and broken shopping in America, Bloomberg reports.

Aisles full of locked plexiglass cases are common at many CVS and Walgreens stores where consumers have to wait for an employee to unlock them. Target, Walmart, Dollar General and other retailers have also pulled back on self-checkout to deter shoplifting. “Locking up products worsens the shopping experience, and it makes things inconvenient and difficult,” GlobalData retail analyst Neil Saunders said, adding it pushes shoppers to other retailers or to move purchases online.

Driving the news: Manmohan Mahajan, Walgreens global chief financial officer, said in a June earnings call that the retailer was experiencing “higher levels of shrink.” Amazon CEO Andy Jassy spoke of the “speed and ease” of ordering online versus walking into pharmacies on a call with investors last week. “It’s a pretty tough experience with how much is locked behind cabinets, where you have to press a button to get somebody to come out and open the cabinets for you,” Jassy said. schwit1 adds: “The American-style retail shopping experience was invented in a high-trust environment. As trust erodes, so does the experience.”

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