
In a bold move against alleged privacy violations, Texas Attorney General Ken Paxton is taking on Allstate and Arity, a subsidiary of the insurance giant, for what he claims is the unlawful collection, use, and sale of over 45 million Americans' driving data. The companies are accused of embedding tracking software in commonly used mobile apps to slyly gather a treasure trove of location data to help justify increases in car insurance premiums, a practice the Texas AG has deemed in direct violation of consumers' privacy rights. Paxton has taken this issue to court, claiming that these acts breach the Texas Data Privacy and Security Act (TDPSA), a law that demands clear notice and informed consent when it comes to handling sensitive data.
According to the Texas Attorney General's official announcement, Allstate, through Arity, is said to have collected trillions of miles worth of Texans' geolocation data. The lawsuit affirms that consumers' data was improperly used to essentially incentivized to unfairly hike their car insurance rates. Paxton stated, "Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software." He continued, delineating the intrusive nature of these actions, "The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law." This legal confrontation is tagged as the first of its kind where a State Attorney General has launched an enforcement action to uphold a comprehensive data privacy law.
The TDPSA was established to provide Texans with a bulwark against the misuse of their sensitive data, especially their precise geolocation information. Under this act, companies are obligated to be transparent about their data collection methodologies and are required to obtain clear consent from the consumers before leveraging their personal information. The current lawsuit emphasizes that Allstate fell short of providing the necessary notification or securing the consent of the consumers they monitored, infringing on statutory privacy protections.
Adding to a string of legally contentious issues facing major companies over consumer data practices, Paxton's legal challenge to Allstate is not an isolated instance. It follows closely on the heels of another lawsuit against General Motors, and is part of an ongoing probe involving several car manufacturers. These investigations and legal tussles shine a spotlight on the growing concerns over privacy in an increasingly digital and monitored world, pushing to bring corporate practices into alignment with legal expectations. "Texans deserve better and we will hold all these companies accountable," Paxton vowed in his effort to rigorously enforce the state's data privacy statute, detailed by the Attorney General of Texas.