AUSTIN, Texas – Attorney General Ken Paxton has filed a lawsuit against Allstate and its subsidiary, Arity, accusing them of unlawfully collecting driving data from millions of consumers without their consent and using it to increase car insurance rates.
The lawsuit alleges that the companies embedded tracking software in mobile apps to collect driving behavior data without users’ knowledge. This data, according to the complaint, was then used to assess risk profiles and adjust insurance premiums.
The attorney general’s office claims that Arity paid app developers to include the software, facilitating the collection of detailed driving information from over 45 million users nationwide, including trillions of miles of driving records.
“Selling personal data without consent is a violation of trust and the law,” Paxton said. “We will ensure Texans are protected from these deceptive practices.”
Privacy Concerns and Legal Violations
The lawsuit highlights violations of the Texas Data Privacy and Security Act (TDPSA), which mandates that companies must provide clear notice and obtain explicit consent before gathering sensitive consumer data. The complaint alleges that Allstate used this data during the quote and renewal processes to justify higher premiums.
Efforts to reach Allstate for comment were unsuccessful at the time of reporting.
Part of a Larger Initiative
This case marks the latest in a series of legal actions by Paxton aimed at protecting consumer privacy. It follows a lawsuit against General Motors and ongoing investigations into other automakers accused of selling detailed driving data without authorization.
Paxton’s office reiterated its commitment to holding companies accountable for breaching privacy laws and exploiting consumer data without transparency.
