Iowa AG Sues General Motors for Unlawful Data Collection

AG: Iowa Newsroom

Filed February 26th, 2026

Detected March 18th, 2026

Summary

The Iowa Attorney General has sued General Motors and OnStar for allegedly collecting and selling Iowans' vehicle data without consent, violating the Iowa Consumer Fraud Act. The lawsuit seeks restitution, civil penalties, and an injunction against future deceptive practices.

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What changed

The Iowa Attorney General's office has filed a lawsuit against General Motors LLC and OnStar LLC in Polk County District Court, alleging unlawful data collection and sale practices that violate the Iowa Consumer Fraud Act. The suit claims that since 2015, GM has tracked extensive data from vehicles, including speed, seatbelt usage, driving habits, and location, and sold this data to third-party brokers who then sold it to insurance companies. This data was allegedly used by insurers to increase rates, deny coverage, or cancel policies without Iowans' knowledge or consent.

This enforcement action requires immediate attention from any entities operating within Iowa that handle consumer data, particularly in the automotive sector. Compliance officers should review their data collection, usage, and sale policies to ensure transparency and adherence to consumer protection laws. The lawsuit seeks restitution for affected Iowans, civil penalties, and an injunction to prevent GM and OnStar from continuing these practices in Iowa. While specific compliance deadlines for other entities are not stated, the nature of the suit suggests a need for proactive review of data handling practices to avoid similar legal challenges.

What to do next

Review data collection, usage, and sale policies for compliance with consumer protection laws.
Ensure adequate disclosure to consumers regarding data tracking and third-party sharing.
Assess potential impact of similar data practices on Iowa consumers.

Penalties

Civil penalties and restitution for impacted Iowans.

Source document (simplified)

Home | News Releases | Attorney General Brenna Bird Sues General Motors for Illegal Business Practices

February 26, 2026

Attorney General Brenna Bird Sues General Motors for Illegal Business Practices

DES MOINES—Attorney General Brenna Bird announced that her office has filed a lawsuit against General Motors LLC and OnStar LLC for unlawfully collecting and selling data from Iowans without their knowledge or consent. The lawsuit, filed in Polk County District Court, asserts that General Motors engaged in deceptive business practices in violation of the Iowa Consumer Fraud Act.

According to the lawsuit, General Motors installed systems in its vehicles that tracked a wide array of data points, including speed, seatbelt usage, driving habits, and location since 2015. General Motors then sold that data to third-party data brokers, who later sold it to insurance companies. The insurance companies used that data to raise rates, deny coverage, or cancel policies. That was all without Iowans knowing.

The petition asserts:

GM deceived consumers when they were buying a vehicle by misrepresenting the nature and scope of the OnStar-connected services.
Consumers were often misled into believing enrollment in OnStar was mandatory to access basic safety features.
GM failed to adequately disclose that enrollment in its mobile apps or Connected Vehicle Services would allow the company to collect and sell detailed personal data.
“Iowans deserve to know who is collecting, using, and selling their data and why,” said Attorney General Bird. “They should also be able to trust a company as large and well-known as General Motors. GM was not honest with Iowans who were spending hard-earned money to buy a dependable vehicle—and they did it to make more money. That is wrong, and our office is holding them accountable.”

The petition seeks restitution for Iowans who were impacted, civil penalties, and the prevention of GM and OnStar continuing these practices in Iowa.

Read full petition here.