Texas Takes Legal Action Over Alleged Data Collection Violations

Texas Attorney General Ken Paxton has initiated a significant lawsuit against Allstate and Arity, accusing them of unlawfully collecting and selling data from millions of Americans.

At a Glance

Texas has sued Allstate and Arity over unauthorized data collection.
The lawsuit claims violation of the Texas Data Privacy and Security Act.
Paxton seeks civil penalties and data destruction.
Data was allegedly used to raise insurance rates without consent.

Legal Action Against Allstate

Texas Attorney General Ken Paxton has filed a lawsuit against insurance giant Allstate and its subsidiary Arity for allegedly collecting and selling driving and location data from millions of Americans without consent. The lawsuit accuses these companies of embedding covert tracking technology in popular mobile applications, facilitating the unlawful gathering and distribution of consumer data.

According to the lawsuit, data was obtained from approximately 45 million people across the United States. The accusation further suggests that app developers were compensated to incorporate the tracking software, leading to widespread data harvesting. This case follows a similar lawsuit against General Motors, showcasing a trend of scrutinizing large corporations for data privacy violations.

Allstate has been sued by the state of Texas, which accused the insurer today of illegally tracking drivers through their cell phones without their consent and using the data to justify charging more for car insurance. pic.twitter.com/pR6rhjrAcf

— Breaking News (@TheNewsTrending) January 14, 2025

Allegations of Data Privacy Violations

Filed in Montgomery County District Court, the lawsuit highlights Allstate’s violation of newly enacted state legislation. The Texas Data Privacy and Security Act, effective since July, mandates explicit consumer consent for data collection and sale. It enshrines consumer rights regarding data access, correction, deletion, and limits data processing without consent.

The lawsuit also claims that Allstate paid to install tracking software through popular apps like Life360 and GasBuddy, aggressively collecting detailed geolocation and movement data. This information was allegedly used by Allstate to influence underwriting decisions, potentially increasing premiums or denying coverage, directly affecting consumer interests.

Impact on Consumers and Public

This legal battle underscores growing concerns around consumer data privacy and the encroachment of technology on personal freedoms. It questions the ethical ramifications of such corporate practices where technology bypasses consumer consent, affecting millions of Americans. The lawsuit insists on halting these methods and seeks civil penalties of up to $10,000 per violation, along with the destruction of the illicitly obtained data.

The outcome of this lawsuit could have significant consequences for corporations relying on comprehensive data analytics for business decisions. Companies like Allstate may face increased scrutiny regarding consumer data handling, prompting better transparency and compliance with privacy laws to protect consumer interests.