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Texas Sues Allstate For Secretly Tracking Drivers Through Apps, Using Data To Raise Rates

Posted By: RumorMail
Date: Tuesday, 14-Jan-2025 09:25:32
www.rumormill.news/250261

This makes me wonder about the app called 'Life360'. This app tells you EXACTLY where your spouse, children, or friends are. I've always wondered if they sell this data to other companies that will charge you more for where you've been.

Lynda

******************

by Tyler Durden
Monday, Jan 13, 2025

The state of Texas has sued Allstate and a subsidiary, Arity, accusing the insurance giant of illegally tracking drivers through cell phone apps without their consent and then using the data to charge more for car insurance.

According to Texas AG Ken Paxton, Allstate created the "world's largest driving behavior database," which collected information on more than 45 million Americans after paying mobile app developers millions of dollars to secretly incorporate tracking software. The software was designed beginning in 2015 by Allstate's data analytics unit, Arity, and integrated into several apps such as Fuel Rewards, GasBuddy, Life360 and Allstate-owned Routely.

In a Monday complaint filed in a Texas state court near Houston, Texas says Allstate also profited by selling the data to other insurers.

According to a press release from Paxton, These actions violated the Texas Data Privacy and Security Act (“TDPSA”), which created heightened protections for Texans’ sensitive data, including but not limited to precise geolocation information. The law requires clear notice and informed consent regarding how a company will use Texans’ sensitive data. Allstate never provided notice or obtained Texans’ consent to collect or sell their sensitive data. This is the first enforcement action ever filed by a State Attorney General to enforce a comprehensive data privacy law.

In addition, Texas has accused Allstate of purchasing data about vehicles' whereabouts directly from automakers in order to more accurately determine - not based on cellphone locations - when policyholders are actually driving.

Participating manufacturers allegedly include; Toyota, Lexus, Mazda, and Stellantis' Chrysler, Dodge, Fiat, Jeep, Maserati and Ram.

The lawsuit seeks restitution and other damages for consumers, along with civil fines of up to $10,000 per violation, and the destruction of illegally collected data.

Paxton filed a similar lawsuit in August accusing General Motors of installing tracking technology on over 14 million vehicles since 2015 to collect driver data, which the company sold to insurers and other companies without drivers' consent.

https://www.zerohedge.com/technology/texas-sues-allstate-secretly-tracking-drivers-through-apps-using-data-raise-rates




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