States need to have and use data privacy laws to bring privacy violations to light and hold companies accountable for them. So, we were glad to see that the Texas Attorney General’s Office has filed its first lawsuit under Texas Data Privacy and Security Act (TDPSA) to take the Allstate Corporation to task for sharing driver location and other driving data without telling customers.
In its complaint, the attorney general’s office alleges that Allstate and a number of its subsidiaries (some of which go by the name “Arity”) “conspired to secretly collect and sell ‘trillions of miles’ of consumers’ ‘driving behavior’ data from mobile devices, in-car devices, and vehicles.” (The defendant companies are also accused of violating Texas’ data broker law and its insurance law prohibiting unfair and deceptive practices.)
On the privacy front, the complaint says the defendant companies created a software development kit (SDK), which is basically a set of tools that developers can create to integrate functions into an app. In this case, the Texas Attorney General says that Allstate and Arity specifically designed this toolkit to scrape location data. They then allegedly paid third parties, such as the app Life360, to embed it in their apps. The complaint also alleges that Allstate and Arity chose to promote their SDK to third-party apps that already required the use of location date, specifically so that people wouldn’t be alerted to the additional collection.
That’s a dirty trick. Data that you can pull from cars is often highly sensitive, as we have raised repeatedly. Everyone should know when that information’s being collected and where it’s going.
More state regulators should follow suit and use the privacy laws on their books.
The Texas Attorney General’s office estimates that 45 million Americans, including those in Texas, unwittingly downloaded this software that collected their information, including location information, without notice or consent. This violates Texas’ privacy law, which went into effect in July 2024 and requires companies to provide a reasonably accessible notice to a privacy policy, conspicuous notice that they’re selling or processing sensitive data for targeting advertising, and to obtain consumer consent to process sensitive data.
This is a low bar, and the companies named in this complaint still allegedly failed to clear it. As law firm Husch Blackwell pointed out in its write-up of the case, all Arity had to do, for example, to fulfill one of the notice obligations under the TDPSA was to put up a line on their website saying, “NOTICE: We may sell your sensitive personal data.”
In fact, Texas’s privacy law does not meet the minimum of what we’d consider a strong privacy law. For example, the Texas Attorney General is the only one who can file a lawsuit under its states privacy law. But we advocate for provisions that make sure that everyone, not only state attorneys general, can file suits to make sure that all companies respect our privacy.
Texas’ privacy law also has a “right to cure”—essentially a 30-day period in which a company can “fix” a privacy violation and duck a Texas enforcement action. EFF opposes rights to cure, because they essentially give companies a “get-out-jail-free” card when caught violating privacy law. In this case, Arity was notified and given the chance to show it had cured the violation. It just didn’t.
According the complaint, Arity apparently failed to take even basic steps that would have spared it from this enforcement action. Other companies violating our privacy may be more adept at getting out of trouble, but they should be found and taken to task too. That’s why we advocate for strong privacy laws that do even more to protect consumers.
Nineteen states now have some version of a data privacy law. Enforcement has been a bit slower. California has brought a few enforcement actions since its privacy law went into effect in 2020; Texas and New Hampshire are two states that have created dedicated data privacy units in their Attorney General offices, signaling they’re staffing up to enforce their laws. More state regulators should follow suit and use the privacy laws on their books. And more state legislators should enact and strengthen their laws to make sure companies are truly respecting our privacy.
This post was originally published on here
