This scheme is being called the “world’s largest driving behavior database. Malwarebytes has reported Allstate Insurance and Arity, a subsidiary of Allstate Insurance, are being sued for collecting, using, and selling the driving data of over 45 million Americans without their consent. This action comes on the heels of a calamitous year for insurance companies, mainly on the home insurance front, as many have recently come under fire for dropping coverage ahead of major weather disasters.
It’s been widely reported that Allstate partnered with app developers such as Life360 to secretly gather driving data from users and have then used that driving data as justification for raising rates. In addition to using the data for their customers, Allstate has also sold data to other insurance companies so they can raise rates as well. This scheme is being called the “world’s largest driving behavior database.”
Texas Attorney General Ken Paxton said in an interview “Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software and the personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law. Texans deserve better, and we will hold all these companies accountable.” It has also been reported that General Motors along with other car manufacturers are under investigation for similar breaches. Allstate is being accused of purchasing that data from manufacturers as well, including Toyota, Lexus, Mazda, Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram.
Location privacy is a critically important issue. There are many consequences of sharing location in cases like this and the risks multiply when those selling your data don’t do so securely. Bad actors who pay to gain illicit access to your personal location data can engage in stalking and identity theft. The crux of the issue is consent. End users need to know what they’re getting when they provide their location data to any organization. Allstate is being sued under the Texas Data Privacy and Security Act. Some states have more robust data privacy laws than others, and they can all be tracked here. Robust federal action is also being taken against location data brokers.
At the end of the day your case can only be settled one time and you need to know all of the facts beforehand. The reason that insurance companies have paid our clients in excess of $130,000,000.00 is that we get the facts and are not intimidated at the prospect of going to trial when insurance companies fail to offer full compensation. We help with serious injuries that require serious representation. We are the Law Offices of Guenard & Bozarth, LLP. Our attorneys have more than 60 years of experience specializing in only representing injured people. Call GB Legal 24/7/365 at 888-809-1075 or visit www.gblegal.com
