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"
$3.0M
Texas Attorney General Ken Paxton announced a settlement requiring Temu to protect Texans’ sensitive personal data from exposure to the Chinese Communist Party and to strengthen product-safety practices. Temu must pay Texas $3 million, comply with data-security requirements backed by a potential $8 million annual penalty, conduct annual independent product testing, and take specified action on products found to contain harmful substances.
$773.0M
Texas Attorney General Ken Paxton announced that a multistate coalition had secured an opioid settlement with Albertsons, which would require the grocery chain to pay more than $773 million nationally once final. Texas and its political subdivisions may receive up to $57.8 million for opioid abatement; the release does not identify privacy violations.
Texas Attorney General Ken Paxton sued Gerber Products Company and Nestlé USA, Inc., alleging that Gerber made deceptive safety and testing claims while its baby food contained dangerous levels of toxic heavy metals. The lawsuit asserts claims under the Texas Deceptive Trade Practices Act; the release does not report a settlement, monetary penalty, or court order.
$1.5M
The Texas Attorney General obtained a judgment holding Rubinsky Roofing LLC liable for 27 violations of the Texas Deceptive Trade Practices Act, including deceptive practices involving older consumers and payment for unnecessary or unfinished repairs. The judgment requires more than $1.5 million in civil penalties, allocates at least $500,000 to consumer restitution, and permanently bars the company and its owner from the practices at issue.
The Texas Attorney General opened an investigation into UnitedHealth Group over allegations that its insurance-benefit administration and patient-care decisions denied Texans medically necessary healthcare. The AG issued Civil Investigative Demands to collect evidence; the release announces no penalty or remedy.
$7.5M
Texas Attorney General Ken Paxton announced a $7.5 million settlement with Tris Pharmaceuticals over alleged misrepresentations about the efficacy of Dyanavel XR, an ADHD drug marketed for children. The release says the company overstated the drug’s efficacy and directed sales representatives to make misleading claims to doctors, including Medicaid providers.