Texas AG Sues Allstate Over Data Collection

Texas Attorney General Ken Paxton has filed a lawsuit against Allstate and its subsidiary Arity for allegedly collecting and selling driving data from over 45 million consumers without their knowledge. The lawsuit claims that Allstate used 'secret' software embedded in popular mobile apps to track users' location and driving behavior, which was then used to justify raising insurance rates. Allstate reportedly compensated app developers millions to integrate this tracking software, resulting in the creation of what Arity claims is the 'world’s largest driving behavior database.' Paxton emphasized that the actions violated the Texas Data Privacy and Security Act, which mandates informed consent for data usage. In response, Allstate has maintained that its practices are legal and that users consented to data collection. This lawsuit follows previous actions by Paxton against other companies for similar privacy violations.