Texas has filed a lawsuit against Allstate, accusing the insurer of tracking drivers without their consent through its subsidiary Arity. The state claims that millions of Americans had their personal data sold to insurance companies without knowledge or consent.
According to the lawsuit, Allstate paid mobile apps millions of dollars to install its tracking software on users’ phones. The company denies any wrongdoing, stating that Arity provides driving risk scores and uses data from smartphones in a way that complies with laws. However, Texas attorney general Ken Paxton claims that insurers used this data to justify increased premiums or deny coverage.
The lawsuit alleges that Arity has access to the location, movement, and driving data of over 45 million Americans who were never informed about or consented to the continuous collection and sale of their data. This is not the first time Texas has taken action against Allstate; it also sued General Motors last year for collecting consumers’ driving data without consent.
Source: https://www.nytimes.com/2025/01/13/technology/texas-allstate-driver-data-lawsuit.html