Allstate Location Data Lawsuit

See, the way companies collect data these days and use it, is kinda a big thing, and if a data breach happens, the customer data is out there in the open for cybercriminals to access or some other shady business/company to use in their favour to earn more profits from it. Well, that is precisely what has been going on in the case of this Allstate Location Data Lawsuit. As many of you may already know, Allstate is actually a big car insurance company, but this lawsuit filed against them alleges that they have been doing some shady practices behind the scenes, like tracking the driving habits of customers and then selling that data without telling anyone. Let’s get to some details here, shall we?

First Of All, Meet the Main Players: Allstate and Arity

We all know how big of an insurance company Allstate is in the country, but back in 2016, it launched another company called Arity, which was there to collect and analyse the driving data. From the looks of it, the main goal here was just to study the behaviour of people when driving, right? Like, where they do, how fast they usually drive, do they look at their phones while driving, and all that. Well, for study purposes, that’s good, but if this data gets in the hands of insurance companies, they can use it to create better plans for the customer, not for the betterment of the customers, but to profit even more. And that is precisely what happened, and that’s why we’re seeing this Allstate Location Data Lawsuit in action.

Timeline of the Trouble

See, back in 2020 and 2021, National General Insurance had two major data breaches, and the interesting part is that this particular company was bought by Allstate back in 2021. Sounds something shady here, right? Well, as per the details that are already out, as many as 200,000 people’s data was leaked in these two data breaches, and sure enough, 165,000 of those people were living in New York at the time.

You might think like it all just stopped there, but things kinda got even messier from there on. Like, Arity had been collecting driving data of literally tens of millions of people through apps like Life360 and Fuel Rewards. The sketchy part is that most customers didn’t even know that this was happening.

Then, Texas Brings The Big Lawsuit, And New York Joins It

Well, after all the investigation and noticing all the shady practices, finally, we saw that Texas Attorney General Ken Paxton filed a lawsuit against Allstate and Arity back in January 2025. Though, the super interesting thing about this case which made it kinda historic was the fact that it was the first ever case under Texas’s brand-new privacy law called the Texas Data Privacy and Security Act (TDPSA).

And sure enough, then in March 2025, we saw New York doing the same, like, New York Attorney General Letitia James filed the lawsuit against these companies for the very same reason, and now it is all in progress. We’re all waiting for the conclusion of this case now.