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ARTICLE · 24 JANUARY 2025

A Landmark Lawsuit In Data Privacy: Texas v. Allstate

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In a groundbreaking enforcement action, Texas Attorney General Ken Paxton has filed a lawsuit against Allstate Corporation and its subsidiary Arity, alleging systematic violations of the Texas Data Privacy and Security Act (TDPSA) and other consumer protection laws.

United StatesPrivacy
Justin Bryant
Justin Bryant

In a groundbreaking enforcement action, Texas Attorney General Ken Paxton has filed a lawsuit against Allstate Corporation and its subsidiary Arity, alleging systematic violations of the Texas Data Privacy and Security Act (TDPSA) and other consumer protection laws. This is the first ever enforcement action under the TDPSA, which became effective in 2024, and the lawsuit highlights the pervasive risks associated with unauthorized collection of precise geolocation data.

The Allegations

According to the complaint, Allstate and Arity developed software embedded in popular mobile apps—such as GasBuddy—to collect sensitive geolocation and behavioral data without users' knowledge or consent. This data was allegedly sold to third parties, including insurance companies, and used to justify increased car insurance premiums.

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