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Texas Sues Allstate for Collecting Driver Data Without Consent

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The state of Texas has filed a lawsuit against Allstate, accusing the insurer of illegally tracking drivers through their cell phones without their consent. Texas Attorney General Ken Paxton claims that Allstate created “the world’s largest driving behavior database” by paying mobile app developers millions of dollars to secretly incorporate tracking software into apps. The lawsuit, filed in a Texas state court near Houston, alleges that Allstate used the data to justify raising car insurance premiums, denying coverage, and selling the data to other insurers.

The tracking software, developed by Allstate’s data analytics unit Arity, was integrated into widely used apps such as Fuel Rewards, GasBuddy, Life360, and the Allstate-owned Routely starting in 2015. The complaint further asserts that Allstate has also purchased location data directly from vehicle manufacturers, including Toyota, Lexus, Mazda, and Stellantis, to track the movements of policyholders more accurately.

The lawsuit alleges that Allstate’s actions violated Texas laws on data privacy, data brokers, and unfair and deceptive practices by insurers. Texas is seeking restitution, civil fines up to $10,000 per violation, and the destruction of illegally collected data. The state also contends that Allstate profited from this practice by increasing premiums and denying coverage based on the collected data.

This lawsuit follows a similar case filed last August against General Motors, accusing the company of collecting driver data from over 14 million vehicles and selling it to insurers and other businesses without drivers’ consent.

 

Elon Musk’s X Sues Ad Industry Group Over Alleged Advertising ‘Boycott’

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Elon Musk’s X has filed a lawsuit against the Global Alliance for Responsible Media (GARM) and four prominent companies — CVS, Unilever, Mars, and Ørsted — alleging antitrust violations and accusing the group of orchestrating an advertising “boycott” against the platform. The lawsuit claims that GARM, an ad-industry initiative run by the World Federation of Advertisers, conspired to collectively withhold billions of dollars in advertising from Twitter, now rebranded as X, due to concerns over brand safety standards post-Musk’s acquisition in late 2022.

GARM aims to help brands avoid placing advertisements alongside illegal or harmful content. It comprises over 100 member companies who agree to adhere to GARM’s brand safety standards. The lawsuit alleges that after GARM publicly urged X to comply with these standards, many affiliated companies abruptly reduced or halted their advertising on the platform. This action, according to X, has significantly harmed its core ad business, which has struggled since Musk’s takeover due to fears of ads running alongside misinformation or hate speech.

X’s CEO, Linda Yaccarino, highlighted the dire situation in a video, stating that the alleged boycott threatens the company’s long-term viability. The lawsuit seeks to prevent GARM from continuing to make recommendations about advertising on X and requests unspecified monetary damages.

This lawsuit is part of a broader pattern of legal actions by X to address its declining ad revenue. Previously, X sued the Center for Countering Digital Hate (CCDH) and Media Matters, both watchdog groups, accusing them of distorting information about hate speech and extremist content on the platform, which they claim drove advertisers away. A federal judge dismissed the suit against CCDH, and the case against Media Matters is set for trial next year.