Allstate Secretly Tracked 45 Million Drivers Through Apps, Lawsuit Claims

Allstate Secretly Tracked 45 Million Drivers Through Apps, Lawsuit Claims

Allstate Faces Major Privacy Lawsuit Over Unauthorized Data Collection

Texas Attorney General Ken Paxton has initiated legal action against Allstate and its subsidiary Arity for allegedly collecting and monetizing driving data from over 45 million Americans without proper consent.

The lawsuit alleges that the companies:
– Paid app developers to embed tracking software in popular mobile applications
– Collected location data every 15 seconds from users who granted app location permissions
– Created the world’s largest driving behavior database
– Used collected data to adjust insurance premiums
– Sold driving data to other insurance companies

Key Applications Involved:
– Life360
– GasBuddy
– Fuel Rewards
– Routely
(Combined downloads exceed 115 million on Google Play)

Additional Data Sources:
The company also purchased location data from major automotive manufacturers including Toyota, Lexus, Mazda, Chrysler, and others.

Legal Violations:
– Texas Data Privacy and Security Act (TDPSA)
– Data Broker Law
– Texas Insurance Code

Sought Penalties:
– Up to $7,500 per TDPSA violation
– Up to $10,000 per Insurance Code violation
– Consumer restitution
– Mandatory data destruction
– Injunctive relief to halt practices

Allstate’s Response:
The company maintains that their data collection practices are transparent and compliant with all laws and regulations, stating users consent to data collection for accurate insurance pricing.

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