An expert said the auto industry should pay attention to Texas' data privacy laws: "What Texas has done is funded it, staffed it and supported it."
Texas’ attorney general alleges Allstate violates privacy laws by illegally tracking 45 million Americans’ driving behaviors.
The class action was filed in the Northern District of Illinois. It goes further than the claims on behalf of Texas consumers in the state action, and looks to encompass a national class.
Texas Attorney General Ken Paxton sued Allstate Insurance Co. for allegedly conspiring to collect and sell data from mobile devices, without the owners' consent. But the insurer denies any wrongdoing.
According to the lawsuit, AllState and its subsidiary harvested trillions of miles of location data from over 45 million insured customers across the nation, resulting in the 'world's largest driving behavior database.
Texas Attorney General Ken Paxton has filed a lawsuit against Allstate and its data subsidiary Arity for unlawfully collecting, using, and selling driving data from over 45 million Americans.
The lawsuit claims the company tracked more than 45 million Americans and used the information to raise insurance rates without consumers' knowledge.
The lawsuit accuses the insurance company of paying app developers to install code in their products that sent sensitive customer data back to Allstate.
Texas Attorney General Ken Paxton claims Allstate collected the data through mobile apps and by purchasing it from car manufacturers.
Texas Attorney General Ken Paxton claims that Allstate is unlawfully collecting, using and selling data from consumers.
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.