Court Rules
All enforcement actions
Enforcement ActionLow Risk

TX AG Sues Allstate, Arity for TDPSA Violations Over Driving Data

Allstate and ArityJanuary 13, 2025Texas Attorney General

Consumers Affected

45,000,000

Summary

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).

Contract Impact

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.

Contract Search Terms

embedded tracking softwaredriving behavior data collectiongeolocation data consentdata sale to insurance providersTDPSA compliancesensitive data noticethird-party data sale authorizationsurveillance-based pricing

Laws Cited

Texas Data Privacy and Security Act (TDPSA)

Violation Types

Entity Details

Entity

Allstate and Arity

Also known as: Allstate

Industry

Insurance

Official Sources

Source Evidence

Entity Name
"Allstate and its subsidiary, Arity"
Laws Cited
"Texas Data Privacy and Security Act (“TDPSA”)"
Violation Types
"Allstate never provided notice or obtained Texans’ consent to collect or sell their sensitive data."
Violation Types
"precise geolocation information"
Violation Types
"selling Over 45 Million Americans’ Driving Data to Insurance Companies"
Violation Types
"used the covertly obtained data to justify raising Texans’ insurance rates"

Related Enforcement Actions

TX

Institutional Shareholder Services, Inc.

Texas Attorney General Ken Paxton filed a lawsuit against proxy advisory firm Institutional Shareholder Services, Inc. (ISS) alleging violations of the Texas Deceptive Trade Practices Act by prioritizing political agendas over sound financial guidance in voting recommendations. The lawsuit seeks an injunction to stop deceptive practices and civil penalties of up to $10,000 per DTPA violation. This action follows a 2025 investigation into ISS and peer firm Glass Lewis & Co.

TX

Meta (formerly known as Facebook)

Texas Attorney General Ken Paxton launched an investigation into Meta's Meta AI Glasses over allegations of unlawful facial biometric data collection, deceptive privacy practices, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses' always-on recording mode lacks proper user notice, planned facial recognition features would collect data without consent, and private user videos are accessed by third-party annotators in Kenya. The AG issued a Civil Investigative Demand to Meta to determine violations of Texas privacy laws.

TX

Meta

Texas Attorney General Ken Paxton launched an investigation into Meta regarding its Meta AI Glasses, alleging unlawful collection of facial biometric data, deceptive privacy representations, and unauthorized sharing of user data with subcontractors. The investigation follows concerns that the glasses’ always-on recording mode lacks proper notice, subcontractors access private user content including intimate moments, and Meta plans to deploy facial recognition technology to collect unsuspecting individuals’ facial geometry. The AG issued a Civil Investigative Demand to determine if Meta violated Texas law by deceptively misrepresenting its data use practices.

TX

Albertsons Safeway LLC

Texas Attorney General Ken Paxton secured a settlement via Assurance of Voluntary Compliance with Albertsons Safeway LLC, prohibiting the company from misting organic produce with synthetic pesticides like ProduceMaxx in all Texas stores. The settlement requires Albertsons-owned grocery chains to stop using synthetic antimicrobial pesticides in misting systems on organic produce and implement potable water rinses for organic produce after any prior treatments. The action follows an investigation launched in January 2026 into undisclosed pesticide use on USDA-certified organic produce.

TX

Southern Poverty Law Center

Texas Attorney General Ken Paxton opened an investigation into the Southern Poverty Law Center (SPLC) over allegations that the organization deceived donors by using millions of dollars in contributions to fund extremist groups including the Ku Klux Klan, which it publicly claimed to oppose. The SPLC was indicted on federal fraud charges in April 2026 for secretly paying leaders of these groups without disclosing the payments to donors. The Texas OAG issued a Civil Investigative Demand to SPLC to probe deceptive donor solicititation and other potential violations of Texas law.

TX

Texas American Muslim University

Texas Attorney General Ken Paxton filed suit against Texas American Muslim University (TexAM) for operating without required state authorization, offering unauthorized degrees, and misleading prospective students. TexAM lacked the necessary certificate of authority to operate as a private postsecondary institution, had a forfeited nonprofit corporate charter, and used branding confusingly similar to Texas A&M University. The AG seeks injunctive relief and civil penalties exceeding $1 million for violations of the Deceptive Trade Practices Act (DTPA) and Texas Education Code.