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Texas has sued insurance provider Allstate, alleging that the firm and its data broker subsidiary used data from apps like GasBuddy, Routely, and Life360 to quietly track drivers and adjust or cancel their policies.
Allstate and Arity, a "mobility data and analytics" firm founded by Allstate in 2016, collected "trillions of miles worth of location data" from more than 45 million people, then used that data to adjust rates, according to Texas' lawsuit. This violates Texas' Data Privacy and Security Act, which requires "clear notice and informed consent" on how collected data can be used. A statement from Texas Attorney General Ken Paxton said the suit is the first-ever state action targeting comprehensive data privacy violations.
“Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,” Paxton said in a statement. “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.”
According to Texas' complaint, the data collected included "a phone's geolocation data, accelerometer data, magnetometer data, and gyroscopic data, which monitors details such as the phone's altitude, longitude, latitude, bearing, GPS time, speed, and accuracy."
With that data—plus, in some cases, data from connected vehicles—Allstate could see when, how far, and for how long someone was driving, along with "hard braking events" and "whether a consumer picked up or opened their phone while traveling at certain speeds," according to the complaint.
Texas' lawsuit claims that Arity incentivized—through "generous bonus incentives"—apps like GasBuddy, a gas price-tracking app, and Life360, which is intended to keep tabs on family members' location, to "increas[e] the size of their dataset." Under their agreements with app makers, Arity had "varying levels of control over the privacy disclosures and consent language" shown to app users, according to the complaint.
Texas is one of the states that sued General Motors last year for seeking driver data in a less roundabout fashion. GM quietly included "usage-based insurance providers" in its privacy notice for its connected-car service OnStar. A New York Times report revealed that some GM drivers were having car insurance rates adjusted upward or outright denied as a result. GM ultimately stopped sharing driver data with insurers through third-party data brokers, one of which shut down soon after.
https://arstechnica.com/gadgets/202...ng-drivers-behavior-through-third-party-apps/
Allstate and Arity, a "mobility data and analytics" firm founded by Allstate in 2016, collected "trillions of miles worth of location data" from more than 45 million people, then used that data to adjust rates, according to Texas' lawsuit. This violates Texas' Data Privacy and Security Act, which requires "clear notice and informed consent" on how collected data can be used. A statement from Texas Attorney General Ken Paxton said the suit is the first-ever state action targeting comprehensive data privacy violations.
“Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate’s tracking software,” Paxton said in a statement. “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.”
According to Texas' complaint, the data collected included "a phone's geolocation data, accelerometer data, magnetometer data, and gyroscopic data, which monitors details such as the phone's altitude, longitude, latitude, bearing, GPS time, speed, and accuracy."
With that data—plus, in some cases, data from connected vehicles—Allstate could see when, how far, and for how long someone was driving, along with "hard braking events" and "whether a consumer picked up or opened their phone while traveling at certain speeds," according to the complaint.
Texas' lawsuit claims that Arity incentivized—through "generous bonus incentives"—apps like GasBuddy, a gas price-tracking app, and Life360, which is intended to keep tabs on family members' location, to "increas[e] the size of their dataset." Under their agreements with app makers, Arity had "varying levels of control over the privacy disclosures and consent language" shown to app users, according to the complaint.
Nine car brands sharing data
The suit also cites Allstate as gathering direct car use data from Toyota, Lexus, Mazda, Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram vehicles.Texas is one of the states that sued General Motors last year for seeking driver data in a less roundabout fashion. GM quietly included "usage-based insurance providers" in its privacy notice for its connected-car service OnStar. A New York Times report revealed that some GM drivers were having car insurance rates adjusted upward or outright denied as a result. GM ultimately stopped sharing driver data with insurers through third-party data brokers, one of which shut down soon after.
https://arstechnica.com/gadgets/202...ng-drivers-behavior-through-third-party-apps/