The Texas Data Privacy and Security Act was passed in 2024 to give consumers heightened protection against companies covertly collecting, using, or selling consumer’s private information. It became effective on July 1st, 2024. The act requires companies to notify consumers about how their data is being collected and used and gives them the opportunity to correct data or opt out of the collection.
At first glance, one might think that the statue was a reaction to the scare that foreign entities may be using apps like TikTok or other social media apps to spy and collect data on American consumers. However, a pair of recent lawsuits filed by Texas Attorney General Ken Paxton suggest that some American corporations may be the entities spying on consumers.
The General Motors Lawsuit
On August 13th, 2024, Ken Paxton’s office announced filing a lawsuit against General Motors for violating the Texas Data Privacy and Security Act. The lawsuit alleges that General Motors collected the private data of over 1.5 million Texas drivers without their consent and then sold this information to other companies, including insurance companies, to determine drivers’ insurance rates. The lawsuit alleges that GM installed software in their vehicles from about 2015 on, that allows them to “collect, record, analyze, and transmit highly detailed driving data about each time a driver used their vehicle.” According to the lawsuit, when a user signs up for vehicle services such as OnStar or Smart Driver, they unknowingly agree to allow GM to collect and use their data.
The Allstate and Arity Lawsuit
On January 13, 2025, Ken Paxton’s office filed a lawsuit against Allstate and Arity for unlawfully collecting, using, and selling 45 million Americans’ private data collected by embedding software in other apps and then tracking the cell phone. The lawsuit alleges that Allstate and Arity used this data to create the “world’s largest driving behavior database,” from which they could justify setting insurance rates. Can you imagine calling your insurance company to ask why your insurance rates went up without an accident suddenly and being told, “I’m sorry, we’ve been tracking your driving habits, and we now consider you high risk?”
The degree to which this lawsuit relates to the General Motors lawsuit or whether they were operating wholly independently is not clear at this time. However, this Arity and Allstate lawsuit does allege that the data was sold to other insurance companies for use as well. In any event, this lawsuit alleges that Allstate and Arity paid certain app companies millions to incorporate their tracking software into the app. The apps allegedly involved include Sirius XM, Routley, Life360, GasBuddy, and Fuel Rewards.
Shortly after the Texas Attorney General filed his lawsuit against Allstate, a class action was filed against Allstate on behalf of people who either used one of the apps Routley, Life360, GasBuddy, and Fuel Rewards, or drove a Toyota, Lexus, Mazda, Chrysler, Dodge, Fiat, Jeep, Maserati, or Ram vehicle. Visit classaction.org for more information on joining the class action.
Technology vs. Privacy Law
These lawsuits demonstrate the ever-present threat that modern technology poses to individual privacy. While some people may not care about being tracked by insurance companies or other corporations seeking to understand consumer behavior, you have a right to know when someone is tracking you and what they intend to do with that data. Thanks to laws like the Texas Data Safety and Protection Act, you also have a right to make an informed decision about who you will permit to track you.