Allstate allegedly paid smartphone app developers to track you

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

Arity’s software allegedly collected sensitive elements such as geolocation, accelerometer, magnetometer and gyroscopic data from a phone, including altitude, longitude, latitude, bearing, speed and more. The Texas Privacy and Data Security Act requires companies to inform consumers about how they will use a person’s sensitive data and obtain appropriate consent, something the state says Allstate does not do. didn’t do it.

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

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

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

Allstate defended Arity’s alleged actions in a statement to Engine1stating “Arity helps consumers get the most accurate car insurance price after their consent, in a simple and transparent manner, fully compliant with all laws and regulations. »