Allstate sued for allegedly tracking and selling 45M Americans’ location data

In today’s digital age, privacy concerns are at an all-time high as more and more apps request access to our location data. While it may make sense for certain apps like Google Maps or Uber to track our whereabouts for their services, many other apps that have no apparent need for this information also request access to our location. And all too often, we grant these permissions without a second thought.

Recently, Texas Attorney General Ken Paxton filed a lawsuit alleging that insurance giant Allstate had been secretly collecting and selling the location data of 45 million Americans’ smartphones. This data was reportedly gathered through hidden software embedded in mobile apps like Life360, without the knowledge or consent of the users. The lawsuit claims that Allstate used this data to justify raising insurance rates for customers, a practice that violates the Texas Data Privacy and Security Act.

Allstate’s subsidiary, Arity, was also named in the lawsuit for its role in unlawfully collecting and selling customer data. According to Paxton, Allstate paid mobile apps millions of dollars to install tracking software on users’ devices, leading to the creation of the “world’s largest driving behavior database.” This database was then used to justify increasing car insurance premiums for customers.

This is not the first time that car manufacturers have been accused of selling private driving data to insurance companies. Last year, Paxton sued General Motors for allegedly collecting and selling the driving data of over 1.5 million Texans without their consent. Data brokers are also known to purchase customer data, leaving it vulnerable to potential security breaches and hacks.

To protect yourself from unwanted tracking and data collection, here are five tips to stay safe:

1. Avoid installing unnecessary apps that request location access.
2. Only grant location permissions to apps that truly need it for their functionality.
3. Regularly review and manage app permissions on your device.
4. Turn off location services when not in use to prevent passive tracking.
5. Consider using privacy-focused tools like VPNs to safeguard your online activities.

In a world where data has become the new oil, it is essential for businesses to prioritize consumer privacy and security. Companies like Allstate that fail to protect customer data should face consequences for their actions. It is crucial for regulators to hold these companies accountable and enforce strict privacy standards to protect consumers in the digital age.