(Reuters) -Allstate has been sued by the state of Texas, which accused the insurer on Monday of illegally monitoring drivers by their cellphones with out consent, and utilizing the info to justify charging extra for automotive insurance coverage.
Texas Lawyer Basic Ken Paxton stated Allstate created the “world’s largest driving habits database,” with knowledge on greater than 45 million People, by paying cellular app builders million of {dollars} to secretly incorporate its driver monitoring software program.
In keeping with a criticism filed in a Texas state court docket close to Houston, Allstate profited through the use of the info to lift premiums or deny protection, and by promoting the info to different insurers.
Funds have been made by Allstate’s knowledge analytics unit Arity, the criticism stated.
The lawsuit accuses Allstate of violating Texas legal guidelines governing knowledge privateness, knowledge brokers, and unfair and misleading acts by insurers. It seeks damages together with civil fines of as much as $10,000 per violation.
Allstate didn’t instantly reply to a request for remark.
(Reporting by Jonathan Stempel in New York; Enhancing by David Gregorio)