Allstate (ALL) and its Arity unit are facing a lawsuit filed by Texas Attorney General Ken Paxton over their alleged violation of the state's data privacy and security laws, according to a statement from the Attorney General's office on Monday.
The Attorney General accused the companies of paying app developers to integrate a software that tracks consumers' driving data in mobile apps, without their consent, and using this data to create a driving behavior database that serves as insurers' basis for raising insurance rates.
"Our investigation revealed that Allstate and Arity paid mobile apps millions of dollars to install Allstate's tracking software," said Attorney General Paxton, adding that the companies then sold the data to insurance firms.
Allstate and Arity did not immediately respond to MT Neswires' requests for comments.
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