Texas Sues Allstate Over Alleged Unlawful Driver Data Tracking
The lawsuit accuses Allstate and its subsidiary Arity of violating privacy laws by collecting and selling driving behavior data without user consent.
- Texas Attorney General Ken Paxton has filed a lawsuit against Allstate and its data analytics subsidiary, Arity, for allegedly violating the state's Data Privacy and Security Act.
- The lawsuit claims Allstate secretly collected trillions of miles of driving data from over 45 million individuals through apps like Life360, GasBuddy, and Fuel Rewards, as well as directly from car manufacturers.
- The collected data reportedly included precise geolocation, driving patterns, and other sensitive information that was used to adjust insurance rates without proper notice or consent from consumers.
- Texas alleges that Allstate paid millions of dollars to app developers and purchased vehicle data from manufacturers such as Toyota, Mazda, and Stellantis brands to build what it calls the 'world's largest driving behavior database.'
- This case marks the first enforcement action by a state attorney general under a comprehensive data privacy law, with Paxton pledging to hold the companies accountable for privacy violations.