Texas Attorney General Ken Paxton has accused insurance company Allstate and its subsidiary Arity of unlawfully collecting and selling location data from Texans’ cell phones. The companies allegedly embedded software in mobile apps, allowing them to track consumers’ locations and movement without their knowledge or consent.
According to the Attorney General, the companies failed to provide clear notice or obtain informed consent for the collection and use of sensitive data, violating Texas’ new Data Privacy and Security Act. Arity was paid by app developers to incorporate tracking software, which collected trillions of miles worth of location data from over 45 million people across the US.
Allstate used this data to justify raising insurance rates, and also sold it to third parties, including other car insurance carriers. The company allegedly breached consumer trust by using the data for its own business purposes without permission.
This is not an isolated incident; similar practices have been seen in the industry. Car manufacturers have sold location data to insurance companies, while a recent breach at data broker Gravy Analytics exposed millions of people’s sensitive location data.
The Texas Data Privacy and Security Act requires clear notice and informed consent for the use of sensitive data. Allstate allegedly failed to provide this notice, violating the law. The Attorney General has vowed to hold companies accountable for their actions, stating that Texans “deserve better” and promising to take action against those who breach consumer trust.
Source: https://www.malwarebytes.com/blog/news/2025/01/insurance-company-accused-of-using-secret-software-to-illegally-collect-and-sell-location-data-on-millions-of-americans