Texas Attorney General Files Lawsuit Against Allstate and Arity Over Unlawful Collection and Sale of Driving Data

In a bold move to protect consumer privacy, Texas Attorney General Ken Paxton has filed a lawsuit against Allstate and its subsidiary, Arity, accusing the companies of illegally collecting, using, and selling the driving data of millions of Americans without their consent. The lawsuit alleges that the companies secretly tracked the locations and movements of over 45 million individuals across the country, including a significant number of Texans, through embedded software in mobile apps such as Life360. According to the complaint, Allstate and Arity paid mobile app developers to integrate their tracking software into apps that millions of consumers use daily. By doing so, they were able to gather massive amounts of location data, amassing trillions of miles of driving information. The companies then used this data to fuel a controversial business model where driving behavior was linked to insurance premiums. When consumers sought insurance quotes or renewed their policies, Allstate and other insurers would use the collected data to justify raising premiums based on an individual’s driving habits or location.