General Motors is the first car manufacturer to face a lawsuit following the attorney general's investigation into several manufacturers in June for allegedly amassing vast amounts of data and selling it unlawfully.

In the absence of a comprehensive, modern data privacy and security law at the federal level, numerous states are enacting their own regulations to safeguard consumers in the burgeoning data brokerage market.

According to the AG's statement, the Detroit-based manufacturer is accused of employing technology to "collect, record, analyse, and transmit highly detailed driving data about each time a driver used their vehicle" in car models from 2015 onwards.

General Motors allegedly sold this information to several other companies, including at least two firms, to generate "Driving Scores" about GM's customers. The suit claims these two companies then sold these scores to insurance companies.

Insurance companies can use data to determine how frequently individuals exceeded speed limits or adhered to other traffic laws. Some insurance firms offer customers the option to voluntarily opt-in to such programmes, promising lower rates for safer drivers.

However, the attorney general's office contends that GM "deceived" its Texan customers by encouraging them to enrol in programmes such as OnStar Smart Driver. By agreeing to join these programmes, customers unknowingly consented to collecting and selling their data, the attorney general's office stated.

"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.