Texas Attorney General Ken Paxton has filed a lawsuit against insurance companies Allstate and Arity, alleging they collected over 45 million consumers’ driving data without their knowledge or consent. The lawsuit claims the companies embedded secret software on consumers’ cellphones to justify raising insurance rates.
Paxton says Allstate collected trillions of miles worth of data from across the nation, using it to increase car insurance premiums when consumers requested quotes or renewal. He accuses Arity, Allstate’s subsidiary, of paying app developers to incorporate its software and track consumer driving habits.
The Texas Data Privacy and Security Act requires companies to provide clear notice and informed consent for sensitive data collection, which Paxton claims was violated by the insurers. This lawsuit comes after Paxton also filed a lawsuit against General Motors, as well as ongoing investigations into several car manufacturers accused of secretly collecting and selling drivers’ detailed driving data.
Source: https://www.kxan.com/news/texas