5-06-2025 4:54am

TRACKING APPS CAN

Allstate accused of secretly selling location data in Texas lawsuit

Texas Attorney General Ken Paxton said the data was used to raise insurance rates in Texas.

HOUSTON — The state of Texas is suing Allstate and its subsidiary Arity for allegedly collecting and selling drivers' location data without consent through hidden software in mobile apps, marking the first state enforcement action of a comprehensive data privacy law.

The lawsuit, filed in Austin, claims Allstate built "the world's largest driving behavior database" by gathering trillions of miles worth of location data from over 45 million consumers nationwide. According to the lawsuit, Allstate paid app developers, including Routely, Life360, GasBuddy, and Fuel Rewards, to embed tracking software that collected users' driving behavior and location information from their cell phones.

The collected data was then allegedly used by Allstate and other insurance companies to justify increasing customers' car insurance premiums during quote requests and coverage renewals.

"Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate's tracking software," Paxton said in an emailed news release. "The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law."

The legal action alleges violations of the Texas Data Privacy and Security Act (TDPSA), which requires companies to provide clear notice and obtain informed consent before collecting or selling sensitive data, including precise geolocation information. According to Paxton's office, Allstate failed to meet these requirements.

This lawsuit follows similar legal action by Paxton against General Motors and ongoing investigations into several car manufacturers regarding the collection and sale of detailed driving data.

The Texas Attorney General's office is seeking to hold these companies accountable for their data collection practices, asking for a penalty of thousands of dollars per violation.