Allstate Allegedly Paid Smartphone App Developers to Track You

Car insurance companies used the data to raise rates, according to the complaint filed by the Texas attorney general.

Photo by: Allstate

By: Anthony Alaniz

Jan 14, 2025 at 11:00am ET

Comment

Texas Attorney General Ken Paxton has filed a lawsuit against Allstate Insurance and its data analytics subsidiary, Arity. The state is accusing the companies of collecting and selling the smartphone data of millions of drivers in violation of the state’s privacy protection laws. According to the complaint, the insurer collected the information through Arity, which allegedly paid app developers “millions of dollars” to incorporate its software development kit (SDK) into their products to track consumers.

Arity’s software allegedly collected sensitive things like a phone’s geolocation, accelerometer, magnetometer, and gyroscopic data, including altitude, longitude, latitude, bearing, speed, and more. The Texas Data Privacy and Security Act requires companies to inform consumers how they will use a person’s sensitive data and to get proper consent, which the state says Allstate failed to do.

The complaint also alleges that the app developers licensed their own users’s personal information to Arity and Allstate so they could “match specific individuals to the Arity SDK Data.” This included first and last names, addresses, phone numbers, zip codes, and various mobile device and advertising identifiers, allowing Allstate and Arity to create a database that also used data bought from automakers.

According to the complaint, Allstate sold access to its database to other insurance companies that used the data to justify increasing a person’s car insurance premium when they requested a quote or renewed their policy. Allstate also allegedly used the data to underwrite its own policies.

What do you think?

View

Comments

“The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law,” said Paxton in a statement. “Texans deserve better and we will hold all these companies accountable.” The state's is aggressively going after companies that violate the state's new data protection laws, including automakers.

Allstate defended Arity's alleged actions in a statement to Motor1, saying “Arity helps consumers get the most accurate auto insurance price after they consent in a simple and transparent way that fully complies with all laws and regulations.”