Paxton accuses Allstate of collecting driver location and movement data without consent to raise insurance rates in the state.

Allstate and its subsidiary, Arity, are being sued by Texas Attorney General Ken Paxton for allegedly collecting, using and selling data from Texans' cell phones unlawfully.

The legal action alleges violations of the Texas Data Privacy and Security Act (TDPSA), which requires companies to provide clear notice and obtain informed consent before collecting or selling sensitive data, including precise geolocation information. According to Paxton's office, Allstate failed to meet these requirements.