The State Of Texas Sues Allstate Insurance for Alleged Violation of Consumer Privacy

"You’re in Good Hands" is a slogan that people all over Texas are familiar with. It airs on TV, is heard on the radio, and appears in commercials. However, according to the Insurance Journal, the insurance company behind this slogan has recently fallen short of expectations. The great state of Texas has filed a lawsuit against the American insurance giant Allstate, alleging that the company illegally collected driver data through secret embedded software in its mobile app. This data was then used to justify raising Texans' insurance rates. This is a clear violation of privacy laws taken to a whole new level.

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WHAT WILL ATTORNEY GENERAL KEN PAXTON  HAVE TO SAY ABOUT THIS SCANDAL?

Texas Attorney General Ken Paxton stated that Allstate and its partner, Arity, collected trillions of miles worth of location data from over 46 million customers nationwide to create the world’s largest driving behavior database. This is not only alarming but extremely disturbing. Texas believes that Allstate used this data to inform third parties, including other car insurance carriers, about driving behaviors. Paxton also revealed that their investigation uncovered that Allstate and Arity paid mobile app developers millions of dollars to install Allstate's tracking software. The personal data of millions of Americans was sold to insurance companies without their knowledge or consent, violating the law. "Texans deserve better, and we will hold these companies accountable," Paxton declared.

SERIOUS CRIMES FOR WELL-KNOWN INSURANCE COMPANY

Cobun Zweifel-Keegan, Managing Director of the International Association of Privacy Professionals, stated that the lawsuit could be the first step toward a comprehensive state privacy law. Ironically, Allstate's famous slogan is "You're in Good Hands," when many people in Texas certainly don’t feel that way at all.