Allstate must face privacy lawsuit alleging drivers were tracked through cellphones | Latest Tech News
Allstate must face a privacy lawsuit accusing the home and auto insurer of illegally monitoring drivers through their cellphones without consent, utilizing their data to raise premiums or deny coverage, and promoting the data to other insurers.
In a resolution on Tuesday, US District Judge Jeremy Daniel in Chicago said drivers in the proposed class motion can attempt to show that Allstate violated the Federal Wiretap Act by monitoring their journey areas, journey distances, velocity, acceleration, braking, cellphone usage and consideration to the street, and tried to monetize that data to enhance revenue.
Drivers can also attempt to show that Allstate’s data analytics unit Arity violated the federal Fair Credit Reporting Act by inaccurately reporting their driving conduct, including when they rode as passengers.
Allstate must face a privacy lawsuit accusing the home and auto insurer of illegally monitoring drivers through their cellphones without consent, utilizing their data to raise premiums or deny coverage. Christopher Sadowski
According to the criticism, Arity’s monitoring software program was built-in into apps such as Fuel Rewards, GasBuddy, Life360 and Allstate-owned Routely.
The choose also let drivers pursue claims under the legal guidelines of 20 states.
He dismissed three of the drivers’ 38 claims.
Insurers such as Allstate, Progressive and Berkshire Hathaway’s Geico use so-called telematics in monitoring drivers’ habits.
They say the technology rewards good driving through decrease premiums.
Allstate argued that drivers never alleged it truly captured their data, or that their insurance coverage charges went up. It also said its privacy insurance policies disclosed the likelihood of data assortment.
Drivers in the proposed class motion can attempt to show that Allstate violated the Federal Wiretap Act by monitoring their journey areas, journey distances, velocity, acceleration, braking, and tried to monetize that data to enhance revenue. AFP via Getty Images
Allstate said in a assertion on Wednesday: “Consumers who choose to share driving data through Arity-powered apps can access emergency assistance, track fuel efficiency and unlock personalized insurance rates after a clear notice and explicit opt-in process.”
Lawyers for the plaintiffs didn’t immediately reply to requests for remark.
The litigation mixed 15 personal lawsuits against the Northbrook, Illinois-based insurer.
Texas filed a related lawsuit against Allstate in January 2025.
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