In a significant legal action, the state of Texas has initiated a lawsuit against Allstate, one of the largest insurance companies in the U.S., for allegedly collecting driver data without consent. The lawsuit, filed by Texas Attorney General Ken Paxton, accuses Allstate of creating the "world's largest driving behavior database" by secretly tracking over 45 million Americans through their cellphones. This data was purportedly used to justify raising insurance premiums and was sold to other insurers, including data allegedly purchased from manufacturers like Toyota, Lexus, Mazda, and Stellantis' brands such as Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram.

The complaint, lodged in a Texas state court near Houston, details how Allstate's data analytics unit, Arity, developed software integrated into various mobile apps, including Fuel Rewards, GasBuddy, Life360, and Allstate-owned Routely. This software allowed Allstate to monitor consumers' driving behavior without their knowledge or consent, violating Texas laws on data privacy, data brokers, and unfair insurance practices.

Texas Attorney General Ken Paxton emphasized the severity of the issue, stating that Allstate and Arity paid mobile app developers millions of dollars to install tracking software, thereby collecting and selling personal data without consumers' knowledge or consent. This lawsuit marks the first enforcement action by a state attorney general to enforce a comprehensive data privacy law, highlighting the growing concern over data privacy and consumer rights.

The lawsuit seeks restitution and damages for affected consumers, civil fines of up to $10,000 per violation, and the destruction of the illegally collected data. This legal action follows a similar lawsuit filed by Paxton against General Motors last August, accusing the company of collecting and selling driver data without consent.

Allstate, headquartered in Northbrook, Illinois, has not yet responded to the allegations. The outcome of this lawsuit could have significant implications for data privacy laws and the insurance industry's practices regarding consumer data.