Texas Attorney General Ken Paxton has initiated legal action against Allstate and its subsidiary, Arity, accusing them of unlawfully collecting, using, and selling driving data from over 45 million Americans. The lawsuit alleges that Allstate embedded software in mobile apps to track the location and movement of Texans' cell phones without their knowledge or consent. This data was reportedly used by Allstate and other insurers to justify raising insurance rates.
According to the complaint, Arity paid app developers to incorporate tracking software into their applications. This enabled Allstate to collect extensive location data nationwide, creating what they claim is "the world’s largest driving behavior database." When consumers sought insurance quotes or renewed coverage, this data was allegedly used to increase premiums.
The actions described in the lawsuit are said to violate the Texas Data Privacy and Security Act (TDPSA), which mandates clear notice and informed consent for the use of sensitive data such as precise geolocation information. The suit claims that Allstate failed to provide such notice or obtain consent from Texans.
Attorney General Paxton stated, “Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software.” He further noted that "the personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law."
This case marks the first enforcement action by a State Attorney General under a comprehensive data privacy law. It follows previous legal actions by Paxton against General Motors and ongoing investigations into other car manufacturers for similar practices involving detailed driving data collection.
For more details on the filing, readers are directed to access it through available channels.