Texas Sues Allstate for Secretly Collecting Driver Data
Texas has sued Allstate, alleging the insurance giant violated state privacy laws by secretly collecting detailed location data from millions of drivers to justify premium hikes. The lawsuit claims Allstate paid app developers to embed tracking code in their apps (including GasBuddy, Fuel Rewards, and Life360), sending sensitive data back to Allstate. This marks the first enforcement action by a state Attorney General under a data privacy law. Allstate failed to properly inform users about data collection and use in its privacy policies, and didn't utilize a 30-day cure period to avoid the lawsuit. Texas is seeking hefty fines, data deletion, and restitution for affected consumers.
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