The State of Texas has filed a lawsuit against Allstate, alleging that the insurer illegally tracked drivers through a subsidiary called Arity by collecting data from smartphone apps. Allstate and Arity were accused of selling personal driving data of millions of Americans to insurance companies without their consent, leading to potential increases in car insurance premiums or denial of coverage. The lawsuit claims that Arity has collected data from more than 45 million Americans without their knowledge. The state of Texas is seeking to hold these companies accountable for violating privacy laws. This lawsuit comes after a report last year revealed that information gathered from smartphone apps was being analyzed by Arity to create driving risk scores for individuals. This data was then used by insurers to make decisions regarding coverage and premiums. Allstate and Arity have not responded to requests for comment on the lawsuit. This legal action is part of a broader effort by Texas to address the unauthorized collection and sale of consumer data by companies in the insurance and automotive industries.
Texas files lawsuit against Allstate for gathering driver information
