Texas Attorney General Ken Paxton initiated an investigation into multiple car manufacturers for allegedly collecting drivers' data without consent and selling it to third parties, including insurance providers. The investigation, authorized under the Texas Deceptive Trade Practices – Consumer Protection Act, requires manufacturers and data purchasers to produce documents related to their data practices and customer disclosures. The AG highlighted concerns about invasive, non-consensual data collection and sale occurring without consumer knowledge.
Car manufacturers and third-party data buyers are required to produce documents relevant to their data collection and sale practices, including all disclosures provided to customers regarding data use and sharing.
In-house legal teams in the automotive industry or those contracting with car manufacturers should review all customer and vendor agreements for compliance with data privacy disclosure and consent requirements. Ensure contracts clearly outline what driver data is collected, how it is used, and all third parties (including insurance providers) with whom data is shared. Verify that valid, informed consumer consent is obtained prior to collecting or selling driver data, and that contracts include transparency obligations and opt-out mechanisms where required. Additionally, review agreements with third-party data buyers to confirm data use is restricted to authorized purposes and proper safeguards are in place.
Entity
Several Car Manufacturers
Industry
Automotive"Attorney General Ken Paxton Opens Investigation into Car Manufacturers’ Collection and Sale of Drivers’ Data"
"June 06, 2024"
"Texas Attorney General Ken Paxton"
"opened an investigation into several car manufacturers"
"several car manufacturers"
"The Texas Deceptive Trade Practices – Consumer Protection Act authorizes the Office of the Attorney General to investigate false, misleading, or deceptive acts or practices."
$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.
$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.
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.
$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.
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.
$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.