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Lawsuit: Allstate used GasBuddy and other apps to quietly track driving behavior
With that data—plus, in some cases, data from connected vehicles—Allstate could see when, how far, and for how long someone was driving, along with “hard braking events” and “whether a consumer picked up or opened their phone while traveling at certain speeds,” according to the complaint.
Texas’ lawsuit claims that Arity incentivized—through “generous bonus incentives”—apps like GasBuddy, a gas price-tracking app, and Life360, which is intended to keep tabs on family members’ location, to “increas[e] the size of their dataset.” Under their agreements with app makers, Arity had “varying levels of control over the privacy disclosures and consent language” shown to app users, according to the complaint.
Reached for comment by Ars, Allstate Corporation provided a statement: “Arity helps consumers get the most accurate auto insurance price after they consent in a simple and transparent way that fully complies with all laws and regulations.”
Nine car brands sharing data
The suit also cites Allstate as gathering direct car use data from Toyota, Lexus, Mazda, Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram vehicles.
Texas is one of the states that sued General Motors last year for seeking driver data in a less roundabout fashion. GM quietly included “usage-based insurance providers” in its privacy notice for its connected-car service OnStar. A New York Times report revealed that some GM drivers were having car insurance rates adjusted upward or outright denied as a result. GM ultimately stopped sharing driver data with insurers through third-party data brokers, one of which shut down soon after.
This post was updated to include a comment from Allstate.
In a shocking new development, a lawsuit has been filed against Allstate claiming that the insurance company used popular apps like GasBuddy to secretly track customers’ driving behavior. According to the lawsuit, Allstate allegedly collected data on users’ speed, acceleration, and even their location without their knowledge or consent.
The lawsuit, which was filed in a federal court, accuses Allstate of violating privacy laws and engaging in deceptive practices. It claims that the company used this data to adjust customers’ insurance premiums based on their driving habits, without informing them that their behavior was being monitored.
This news has raised concerns about the level of data collection and surveillance that insurance companies are engaging in, and has sparked a debate about the ethics of using this information to determine insurance rates.
Allstate has denied these allegations, stating that they are committed to protecting their customers’ privacy and only use data for legitimate business purposes. However, this lawsuit is sure to bring greater scrutiny to the practices of insurance companies and their use of technology to track and monitor customers.
It remains to be seen how this lawsuit will unfold and what impact it will have on the insurance industry as a whole. In the meantime, customers are advised to be cautious about the information they share with companies and to carefully review their privacy policies before agreeing to any terms and conditions.
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