Lawsuit filed against Allstate for alleged data collection and sales
A recent class action lawsuit filed against Allstate in the United States District Court for the Northern District of Illinois Eastern Division alleges that the insurance company, along with its subsidiary Arity, participated in the unauthorized collection and sale of vast amounts of consumer data without their consent. This lawsuit claims that Allstate and Arity clandestinely gathered and distributed “trillions of miles” of consumer driving behavior data extracted from mobile devices, in-car systems, and vehicles.
The legal action argues that Allstate consolidated this data to establish an extensive database encompassing driving behavior information on over 45 million Americans. The lawsuit further asserts that this data was leveraged by Allstate to sustain its operations and generate revenue by selling this driver behavior data to external entities. The plaintiff, along with many others, was purportedly kept in the dark about the continuous collection and monetization of their data without explicit consent.
The lawsuit details that the collected data included geolocation information, accelerator readings, magnetometer data, and gyroscopic movements. Additionally, it reveals that the defendants purportedly remunerated application developers substantial amounts to incorporate their software in various mobile apps, subsequently incentivizing developers to bolster the size of their database through Allstate’s incentives. This practice of utilizing the Arity SDK has allegedly been ongoing since at least 2017, with well-known applications such as Routely, Life360, GasBuddy, and Fuel Rewards reportedly integrating the software.
Recent developments suggest that Texas Attorney General, Ken Paxton, has also initiated legal proceedings against Allstate and Arity, pointing out that these activities violate the Texas Data Privacy and Security Act. The legislation mandates that companies must provide transparent notifications and solicited consent from Texas residents before collecting or trading their sensitive data. Paxton stated that Allstate and Arity engaged in surreptitious data dealings, with various insurance companies acquiring the personal data of numerous individuals without their knowledge or approval.
In prior instances, Paxton had issued warnings to Arity, citing that the company failed to adequately inform consumers of their data collection practices and data monetization strategies. Allstate Insurance has been part of discussions with government representatives to emphasize the significance of the “right to repair” and has supported the call for federal regulations in this regard. The company is affiliated with the CAR Coalition, a group that advocates for consumers’ control over their vehicle-generated data.
Previously, a lawsuit was filed by Paxton against General Motors and its subsidiary OnStar, alleging deceptive business practices linked to the unauthorized collection and sale of private driving data of more than 1.8 million Texans to insurance corporations. These legal proceedings underscore growing concerns about data privacy breaches involving massive amounts of consumer data collected without their explicit consent.
