Texas Attorney General Ken Paxton sued Allstate and its subsidiary, Arity, alleging they unlawfully collected, used, and sold location data from millions of Americans' smartphones. The data was gathered through embedded software in apps like Life360 and reportedly used to raise car insurance premiums. Paxton claims Allstate violated the Texas Data Privacy and Security Act and failed to inform customers about the data collection.
Nowadays, almost every app you download asks for location permissions, meaning it wants to track where you are and your movements. For an app like Google Maps, requesting location access makes perfect sense. It's also reasonable for apps like Uber or DoorDash, which rely on location for their services. However, many apps that have nothing to do with location still ask for it, and we often grant these permissions without thinking twice.
Paxton claims the actions violated the Texas Data Privacy and Security Act. The lawsuit alleges customers were not clearly informed their data was being collected and did not consent to the practice. 'Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,' said Paxton. 'The personal data of millions of Americans was sold to insurance companies without their knowledge or consent in violation of the law.
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