AUSTIN (KXAN) — Texas Attorney General Ken Paxton announced a lawsuit Monday accusing Allstate and Arity of collecting more than 45 million consumers’ driving data nationwide without their knowledge, according to a news release from the attorney general’s office.
Paxton claims Allstate and Arity embedded “secret” software on consumers’ cellphones as a way to “justify raising Texans’ insurance rates.” Arity, Allstate’s subsidiary data analytics company, paid app developers “to incorporate its software to track consumers’ driving data,” the release said.
NewsNation affiliate KXAN has reached out to Allstate for a statement. This report will be updated if one is received.
Paxton said Allstate collected “trillions of miles worth of data” from consumers nationwide.
The lawsuit claims when consumers requested a quote or to renew their coverage, Allstate and other insurers allegedly used their data to increase their car insurance premiums.
“The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better and we will hold all these companies accountable,” he said in the release.
This lawsuit comes after Paxton’s lawsuit against General Motors, as well has his ongoing investigations into “several car manufacturers for secretly collecting and selling drivers’ highly detailed driving data,” per the release.
Paxton said the actions by Allstate and Arity violated the Texas Data Privacy and Security Act (TDPSA), which requires the company to give “clear notice and informed consent” with how it plans to use consumers’ “sensitive data.”