According to Texas AG Ken Paxton, Allstate created the “world’s largest driving behavior database,” which collected information on more than 45 million Americans after paying mobile app developers millions of dollars to secretly incorporate tracking software. The software was designed beginning in 2015 by Allstate’s data analytics unit, Arity, and integrated into several apps such as Fuel Rewards, GasBuddy, Life360 and Allstate-owned Routely.
In a Monday complaint filed in a Texas state court near Houston, Texas says Allstate also profited by selling the data to other insurers.
According to a press release from Paxton, These actions violated the Texas Data Privacy and Security Act (“TDPSA”), which created heightened protections for Texans’ sensitive data, including but not limited to precise geolocation information. The law requires clear notice and informed consent regarding how a company will use Texans’ sensitive data. Allstate never provided notice or obtained Texans’ consent to collect or sell their sensitive data. This is the first enforcement action ever filed by a State Attorney General to enforce a comprehensive data privacy law.
In addition, Texas has accused Allstate of purchasing data about vehicles’ whereabouts directly from automakers in order to more accurately determine – not based on cellphone locations – when policyholders are actually driving.
Participating manufacturers allegedly include; Toyota, Lexus, Mazda, and Stellantis’ Chrysler, Dodge, Fiat, Jeep, Maserati and Ram. […]
— Read More: www.zerohedge.com
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