An Allstate customer has filed a class-action lawsuit against the insurance provider, demanding it pay for collecting people’s driving data through third-party mobile apps.
The lawsuit was filed a day after Texas sued Allstate over the same claims, accusing the insurance company of secretly collecting information to justify raising the price of car insurance.
Attorneys at Morgan & Morgan Law Offices and Clifford, which filed the complaint, say they are “fighting on behalf of our clients to end this alleged improper data collection and hold Allstate accountable for the surveillance and invasion her right to privacy”.
The class action was filed in Illinois, where Allstate is based, and is similar to the Texas complaint. Plaintiff is a Georgia resident and Allstate Insurance customer named Demetric Sims. He alleges that Allstate invaded his privacy because the company allegedly collected his driving data through a third-party app, SiriusXM. That’s because the app appears to forward such data to an Allstate subsidiary called Arity, according to an official website about how auto insurers can use the company’s customer-tracking software.
(Credit: Arity)
“Defendants integrated the Arity SDK into widely popular applications, such as: Routely, Life360, GasBuddy, Sirius XM and Fuel Rewards,” the complaint adds. “Once an app integrated the Arity SDK, the user unwittingly enabled the defendants to collect driving data through the Arity SDK.”
However, the class action lawsuit alleges that data collection occurred without explicit consent from users. “Insurers then secretly used that consumer’s data to justify raising their car insurance premiums by denying them coverage or dropping them from coverage,” adds the complaint, which also calls for Allstate to end the practice of data collection.
If a judge rules in its favor, the class action could lead to compensation for millions of Americans since Arity has collected data on more than 45 million consumers. The Texas lawsuit is also asking the court to award compensation.
Recommended by our Editors
Allstate did not immediately respond to a request for comment. But on Monday, the company pushed back against the Texas attorney general’s lawsuit. “Arity helps consumers get the most accurate auto insurance quote after opting in in a simple and transparent way that fully complies with all laws and regulations,” Allstate told PCMag.
According to Arity’s website, the company obtains consent after consumers click on ads about using their data to get personalized insurance rates. SiriusXM also denied receiving user information for third parties. “SiriusXM audio services, including the SiriusXM app, do not collect, share or sell precise geographic location data to any third parties. Additionally, the Arity SDK is not integrated into the SiriusXM app,” the company said.
Like what you’re reading?
Register for Security Watch newsletter for our best privacy and security stories delivered straight to your inbox.
This newsletter may contain advertisements, deals or affiliate links. By clicking the button, you confirm that you are over 16 years of age and agree to our Terms of Use and Privacy Policy. You can unsubscribe from newsletters at any time.
About Michael Kahn
Senior reporter
