Texas Attorney General Ken Paxton has filed a notice of violation against Allstate-owned Arity, a mobile data company that collects drivers’ information, for breaching the Texas Data Privacy and Security Act (TDPSA).
The Nov. 29 notice alleges Arity fails to provide customers with a clear notice of the categories of sensitive data being processed and processes customers’ data without their consent.
Arity processes sensitive data through its use of a software development kit to collect data from various mobile applications, including precise geolocation information and how fast a customer’s mobile phone is moving. Arity sells information to car insurance companies.
Texas further alleges that Dallas-based Arity fails to provide the methods by which customers may exercise their right to opt out of the processing of personal data.
The state is requesting that Arity address the violations of the TDPSA identified in the notice and provide a written statement explaining how the company cured the violations. Failure to address any violations identified may result in the Office of the Attorney General taking action against Arity by seeking civil penalties, the notice says. TDPSA authorizes the office to seek up to $7,500 per violation.
Related: Senators Call on FTC to Investigate Automakers’ Sale of Driving Data
Arity, which operates as a mobile data and analytics company independent of Allstate, has collected more than a trillion miles of driving data since 2016, according to an
In 2023 Arity and Connected Analytic Services, a Toyota affiliate, announced a partnership that would bring connected-car data from Toyota and Lexus vehicles to the Arity platform.
“Arity and CAS will provide driving data from connected vehicles to auto insurance carriers, enabling vehicle owners to access usage-based auto insurance (UBI) products,” the announcement said.
Last year Arity announced a partnership with CSAA Å˽ðÁ«´«Ã½Ó³» Group that will leverage the company’s driving data solution to quote personal auto insurance policies.
Data brokers have come under scrutiny this year over privacy concerns and fears that customer-shared data is raising personal auto insurance premiums.
In April GM agreed to end its OnStar motor-assistance program after consumers said the product violated their privacy.
Topics Texas
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