Allstate Allegedly Sold Driver Data To Other Insurance Companies
Texas Attorney General Ken Paxton has filed a lawsuit against Allstate Insurance and its subsidiary, Arity, accusing the companies of violating the state’s privacy protection laws.
The lawsuit alleges that Allstate and Arity collected and sold sensitive smartphone data from millions of drivers without proper consent.
The complaint asserts that Arity paid app developers millions of dollars to embed its software development kit (SDK) into their apps, enabling it to collect extensive data from users’ phones. The information reportedly included geolocation, accelerometer, magnetometer, gyroscopic data, and other dynamic metrics like speed and altitude.
Under the Texas Data Privacy and Security Act, companies must disclose how they use sensitive data and obtain proper consent from consumers. According to the lawsuit, Allstate and Arity failed to comply, and app developers allegedly provided personal information—such as names, addresses, phone numbers, and device identifiers—allowing Allstate to link the data to individual users.
The collected data was reportedly used to create a database sold to other insurance companies. These companies allegedly utilized the information to justify increasing car insurance premiums during quote requests or renewals. Allstate is also accused of using the data for underwriting its own policies.
“The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law,” Paxton stated. “Texans deserve better, and we will hold these companies accountable.”
Allstate responded, stating, “Arity helps consumers get the most accurate auto insurance price after they consent in a simple and transparent way that fully complies with all laws and regulations.”
Last year, Texas went after General Motors for allegedly collecting and selling driver data to insurance companies through its OnStar technology platform
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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