Texas Attorney General Ken Paxton has filed a lawsuit against Allstate and its subsidiary Arity, alleging they unlawfully collected and sold Texans’ cell phone location data without consent. The data was used to raise insurance rates.
The lawsuit claims Allstate paid app developers millions of dollars to install tracking software in mobile apps like Life360, collecting trillions of miles worth of data from over 45 million consumers nationwide. The company then used this data to create a vast driving behavior database and increase car insurance premiums for consumers who requested quotes or renewed their coverage.
The Texas Data Privacy and Security Act requires companies to provide clear notice and obtain consent before collecting sensitive data like precise geolocation information. Allstate failed to do so, according to the lawsuit.
“This is the first enforcement action ever filed by a State Attorney General to enforce a comprehensive data privacy law,” said Paxton. “Texans deserve better and we will hold these companies accountable.”
The lawsuit follows Paxton’s previous actions against General Motors and ongoing investigations into car manufacturers that secretly collect and sell drivers’ driving data.
Source: https://www.texasattorneygeneral.gov/news/releases/attorney-general-ken-paxton-sues-allstate-and-arity-unlawfully-collecting-using-and-selling-over-45