Texas sues Allstate, alleging it violated data privacy rights of 45 million Americans

Summary: Texas Attorney General Ken Paxton is suing Allstate and its subsidiary Arity for allegedly collecting and selling cell phone location data of over 45 million Americans without consent, violating Texas’ Data Privacy and Security Act. This lawsuit marks a significant enforcement action under state-level data privacy laws, highlighting concerns about consumer data privacy in mobile applications.

Threat Actor: Allstate and Arity | Allstate, Arity
Victim: Consumers | consumers

Key Point :

• Allstate allegedly harvested trillions of miles of driving data through software embedded in mobile apps.
• The lawsuit is the first of its kind to enforce a state-level comprehensive data privacy law.
• Arity shared collected data with Allstate and other insurers, impacting consumer insurance premiums.
• Texas has previously warned multiple mobile apps about violations of the state’s data privacy law.
• The case underscores the risks consumers face regarding data privacy when using mobile applications.