STAFF REPORT
Glasgow News 1
Kentucky Attorney General Russell Coleman announced Thursday that the state will receive a multi-million-dollar settlement from General Motors.
General Motors allegedly sold consumers’ private driver behavior data and location information to third parties, which insurance companies used in part to hike insurance rates, according to a release.
Coleman says Kentucky joined a 36-state coalition in the case and will receive nearly $6.5 million as part of a $220 million settlement with the automaker.
According to the release, GM enrolled millions of drivers in its Smart Driver program when they signed up for GM’s OnStar service from 2004 to 2024. Sales employees received bonuses based in part on how many customers they signed up, according to the release.
Coleman says GM “pitched this tool as a way for drivers to improve their own driving safety but ultimately sold their information.”
“Insurance companies who purchased the information were then able to change the driver’s premium based on driving habits including how many times they braked or accelerated quicky and whether they went faster than the speed limit. GM later discontinued the Smart Driver program,” the release states.
General Motors issued a response to the lawsuit settlement.
“This agreement addresses Smart Driver, a product we ended in 2024, and reinforces steps we’ve taken to strengthen our privacy practices,” the company’s release stated. “Safer, more helpful and personalized experiences are enabled by connected vehicle data, and GM is committed to being clear about what information is used, how it’s protected, and the choices customers have about what they share.”
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