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Texas is taking a bold stance in the realm of consumer privacy. The Lone Star State has taken legal action against Allstate Insurance Company, alleging that it engaged in egregious violations of personal data protection laws.
As per reports, Attorney General Ken Paxton filed a lawsuit against Allstate and its subsidiary Arity LLC for their actions related to the collection and sale of customer data without proper consent or notification. This comes as a shock to many Americans who may have unwittingly installed tracking software on their devices through third-party apps in 2015.
The complaint filed by the Republican Attorney General highlights that this scheme allowed Allstate to build what is being described as the “world’s largest driving behavior database.” With trillions of miles of data at its disposal, it is alleged that the insurer used this information to justify rate hikes and further profited from the sale of this sensitive personal data to other companies.
Paxton emphasizes in a statement that tens of millions of Americans were never informed about their driving data being gathered. He believes this grossly violates the Texas Data Privacy and Security Act, the Data Broker Law, and provisions within the Texas Insurance Code prohibiting unfair and deceptive practices in the insurance business.
In his quest for justice, Paxton is seeking an injunction to permanently block Allstate from continuing its data-gathering scheme and imposing significant civil penalties per customer. This enforcement action marks a milestone as it is reportedly the first such case ever filed by a state attorney general to enforce comprehensive data privacy laws.
As of now, Fox News Digital has not received any response from Allstate regarding this matter.
Source: www.foxnews.com
