New: a trial court in 1 of every 10 U.S. counties. Read the post
Court Rules
All enforcement actions
InvestigationLow Risk

Texas AG Investigates Car Manufacturers for Unauthorized Driver Data Sales

Multiple car manufacturersJune 6, 2024Texas Attorney General

Summary

Texas Attorney General Ken Paxton opened an investigation into multiple car manufacturers for collecting and selling driver data to third parties, including insurance companies, without consumers' knowledge or consent. The investigation, conducted under the Texas Deceptive Trade Practices – Consumer Protection Act, seeks documents about data collection practices and disclosures made to customers. The AG's office is concerned about invasive data collection and potential deceptive practices.

Contract Impact

In-house legal teams should review all agreements involving data handling, particularly vendor contracts with third-party data recipients (e.g., insurance companies), customer-facing privacy policies and terms of service, and any data processing agreements. Focus on clauses governing data sharing, third-party disclosures, consumer consent mechanisms, data retention, and breach notification. Changes may be needed to ensure explicit, informed consent for driver data collection and sale, implement clear and conspicuous disclosures about data practices, include opt-out mechanisms, and align retention and security protocols with the Texas Deceptive Trade Practices – Consumer Protection Act to avoid deceptive practices.

Contract Search Terms

data sharing agreementconsent mechanismthird-party disclosure clausedriver data collection policyprivacy notice integrationdata processing addendumopt-out provisiondata retention schedulebreach notification clauseconsumer consent form

Laws Cited

Texas Deceptive Trade Practices – Consumer Protection Act

Violation Types

Entity Details

Entity

Multiple car manufacturers

Also known as: Car Manufacturers

Industry

Automotive

Official Sources

Related Enforcement Actions

TX

PDD Holdings, Inc. and WhaleCo Inc. (doing business as Temu)

$3.0M

Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.

TX

Albertsons Companies, Inc.

$773.0M

Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.

TX

Gerber Products Company and Nestlé USA, Inc.

Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.

TX

Rubinsky Roofing LLC

$1.5M

The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.

TX

UnitedHealth Group, Inc.

The Texas Attorney General opened an investigation into UnitedHealth Group over allegations that its insurance-benefit administration and patient-care decisions denied Texans medically necessary healthcare. The AG issued Civil Investigative Demands to collect evidence; the release announces no penalty or remedy.

TX

Tris Pharmaceuticals

$7.5M

Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.