Consumers Affected
45,000,000
Texas Attorney General Ken Paxton filed a lawsuit against Allstate and its subsidiary Arity for unlawfully collecting, using, and selling driving data from over 45 million consumers without consent. The data, which includes precise geolocation information, was used to justify insurance premium increases. This action alleges violations of the Texas Data Privacy and Security Act (TDPSA).
In-house legal teams should review all vendor agreements with mobile app developers, data analytics providers, and insurance partners to ensure compliance with state data privacy laws like the Texas Data Privacy and Security Act (TDPSA). Key clauses to audit include data collection and consent provisions, requiring explicit notice and opt-in consent for collection of sensitive data such as precise geolocation or driving behavior. Contracts should restrict unauthorized sharing or sale of consumer data to third parties, prohibit covert embedding of tracking software in apps, and ban the use of surveillance data for pricing decisions without consumer consent. Teams should also verify vendors provide clear privacy notices, obtain valid consent before collecting or sharing sensitive data, and include audit rights to monitor compliance with applicable privacy laws.
Entity
Allstate and Arity
Also known as: Allstate
Industry
Insurance"Allstate and its subsidiary, Arity"
"Texas Data Privacy and Security Act (“TDPSA”)"
"Allstate never provided notice or obtained Texans’ consent to collect or sell their sensitive data."
"precise geolocation information"
"selling Over 45 Million Americans’ Driving Data to Insurance Companies"
"used the covertly obtained data to justify raising Texans’ insurance rates"
Texas Attorney General Ken Paxton issued a consumer alert warning Texans about scams, fraudulent charities, and illegal price gouging related to severe flooding. The guidance provides resources for verifying charities and reporting suspected fraud or price gouging to the AG's office.
$150.0M
Texas Attorney General Ken Paxton secured a $150 million multistate settlement against 23andMe following a 2023 data breach that exposed genetic and personal data of 6.9 million consumers. The settlement resolves bankruptcy claims and requires enhanced data security, risk assessments, and an independent advisory board, with immediate recovery of $18 million from bankruptcy funds.
Texas Attorney General Ken Paxton opened an investigation into LinkedIn Corporation over allegations that the company advertised and profited from fake or misleading job opportunities ("ghost jobs") on its platform. The investigation focuses on whether LinkedIn misled consumers who paid for Premium subscriptions by failing to disclose that a significant percentage of job postings may be inactive or not genuine hiring opportunities.
$45.0M
Attorney General Ken Paxton secured a $45 million multistate settlement with Block, Inc. (Cash App) for misleading consumers about the safety of its platform and failing to protect users from fraud. The settlement requires Cash App to maintain 24-hour customer support, cease deceptive safety claims, and fulfill its legal duty to investigate and reimburse unauthorized transactions.
$13.0M
Texas Attorney General Ken Paxton secured a settlement with Walmart over deceptive practices in its Spark Driver program. Walmart misrepresented driver pay, including failing to pass on customer tips and altering base pay after drivers accepted offers. The $13 million settlement provides direct payments to affected Texas drivers and requires Walmart to implement honest compensation practices.
Texas Attorney General Ken Paxton announced an investigation into StubHub for failing to deliver FIFA World Cup tickets that fans purchased. The investigation focuses on reports of 'ghost ticketing,' where sellers list tickets they do not possess, collect payment, and cancel when unable to deliver.