Allstate is now facing a lawsuit from the Texas Attorney General over allegations it unlawfully collected, used and sold the driving and location data of over 45 million Americans to insurance companies. Texas Attorney General Ken Paxton alleges the Allstate, and its subsidiary, Arity, did this through secretly embedded software in mobile apps, such as Life360. The lawsuit alleges that Allstate and other insurers then used the secretly obtained data to hike Texans’ insurance rates.
“Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,” said Attorney General Paxton. “The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better and we will hold all these companies accountable.”
The Texas AG says these actions violated the Texas Data Privacy and Security Act (“TDPSA”), which created heightened protections for Texans’ sensitive data, including but not limited to precise geolocation information. The law requires clear notice and informed consent regarding how a company will use Texans’ sensitive data. The lawsuit alleges that Allstate never provided notice or obtained Texans’ consent to collect or sell their sensitive data.
This is the first enforcement action ever filed by a State Attorney General to enforce a comprehensive data privacy law.
Read the Texas AG press release here.
This lawsuit follows Attorney General Paxton’s lawsuit against General Motors and his ongoing investigations into several car manufacturers for secretly collecting and selling drivers’ highly detailed driving data.
To read the filing, click here.
Allstate Arena is a multi-purpose venue in the Chicago suburbs. (June 21, 2024). Editorial Credit: Joseph Hendrickson/Shutterstock.com.