Texas Sues Allstate for Allegedly Illegally Tracking Drivers' Data through Mobile Apps

The State of Texas has taken legal action against Allstate, alleging that the insurance company illegally monitored drivers' behavior through smartphones, with the involvement of its subsidiary, Arity, which purported to possess the "largest driving behavior database globally." Texas Attorney General Ken Paxton expressed concern over the violation of Texans' privacy rights, stating, "The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law."

According to the lawsuit, Allstate and Arity reportedly paid millions of dollars to mobile app developers to install their tracking software. Furthermore, the lawsuit claims that the collected data was utilized by insurers to unjustly raise car insurance premiums, deny coverage, or terminate existing policies, in violation of the state's privacy laws.

Allegations of Illegal Data Tracking

Last year, a report from The New York Times highlighted how driving behavior data was being obtained through smartphone apps such as Life360 and GasBuddy and subsequently sold to Arity, an analytics company founded by Allstate. The data collected from individuals' smartphones was analyzed by Arity to assess their driving behaviors, such as speeding, sudden braking, and phone distractions while driving, resulting in the assignment of driving risk scores.

In response to these allegations, Texas Attorney General Ken Paxton emphasized the need for accountability, asserting that Texans deserve better protection of their personal data and privacy. The lawsuit seeks to hold Allstate, Arity, and the mobile app developers involved accountable for their actions in violating the state's privacy laws.