State Accuses Allstate of Unauthorized Data Collection
The state of Texas has launched a lawsuit against Allstate (ALL.N), accusing the insurance giant of illegally tracking drivers through their cell phones without consent. Texas Attorney General Ken Paxton claims that Allstate, starting in 2015, secretly embedded tracking software in various mobile apps to monitor driving behavior. Paxton alleges that Allstate created the “world’s largest driving behavior database,” encompassing data on more than 45 million Americans, by paying millions to app developers.
Driving Data Exploited to Raise Premiums
Allstate allegedly used the collected data to raise car insurance premiums or deny coverage to drivers, according to the complaint filed in a Texas state court near Houston. Additionally, the company reportedly profited by selling this data to other insurers. The complaint specifies that Allstate’s data analytics unit, Arity, integrated the tracking software into popular apps like Fuel Rewards, GasBuddy, Life360, and Allstate’s own Routely.
Automakers Involved in Data Sales
Beyond app-based tracking, Texas claims that Allstate purchased data directly from vehicle manufacturers to fine-tune their assessment of when policyholders were actually driving. Allegedly, manufacturers such as Toyota, Lexus, Mazda, and Stellantis brands like Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram sold this location data to Allstate.
Seeking Accountability and Consumer Restitution
In response to these allegations, Texas is seeking restitution and other damages for affected consumers. The state is also pursuing civil fines of up to $10,000 per violation and demands the destruction of the illegally gathered data. This lawsuit follows a similar action Paxton filed last August against General Motors (GM.N), accusing the automaker of secretly collecting and selling driver data since 2015.
