Texas Sues Allstate for Secretly Tracking Millions of Drivers Without Consent

Texas Attorney General Ken Paxton has filed a groundbreaking lawsuit against Allstate and its subsidiary Arity, alleging the insurance giant illegally collected and sold driving data from over 45 million Americans without their knowledge or consent.

The lawsuit reveals that Allstate and Arity paid millions of dollars to mobile app developers to embed tracking software in popular applications like Life360, GasBuddy, Fuel Rewards, and Routely. These apps, which have been downloaded over 115 million times, secretly collected detailed location and movement data from users every 15 seconds.

According to the legal complaint, the companies collected extensive driving behavior information, including precise geolocation data, accelerometer readings, and other sensitive details. This data was used to create what Allstate claims is the "world's largest driving behavior database," which was then utilized to adjust insurance premiums and potentially deny coverage.

The lawsuit specifically accuses Allstate of violating the Texas Data Privacy and Security Act, which requires clear notice and informed consent for collecting sensitive personal information. Furthermore, the legal action alleges that Allstate also purchased location data directly from multiple car manufacturers, including Toyota, Lexus, Mazda, Chrysler, Dodge, and others.

Paxton emphasized the significance of the lawsuit, stating that it is the first-ever enforcement action by a state attorney general to address comprehensive data privacy violations. The legal action seeks significant remedies, including civil penalties of up to $7,500 per violation, consumer restitution, and the destruction of all unlawfully obtained data.

The lawsuit follows a similar legal action Paxton filed against General Motors for comparable data collection practices. It highlights growing concerns about how insurance companies and technology firms are leveraging personal data without transparent consent.

Allstate has responded to the allegations, claiming that Arity helps consumers get accurate insurance pricing through a simple and transparent process that fully complies with all laws and regulations. However, the lawsuit suggests a more complex and potentially invasive data collection strategy that raises significant privacy concerns.

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