Allstate Accused of Secretly Tracking Drivers and Selling Their Data

Case Overview: A class action lawsuit claims Allstate and its subsidiary Arity secretly tracked drivers and sold their data without consent, violating privacy laws.

Consumers Affected: Allstate customers and other individuals whose mobile phone data was collected and sold by Allstate and Arity.

Court: U.S. District Court for the Northern District of Illinois

Insurance giant Allstate and its data-collecting subsidiary, Arity, secretly harvested sensitive driving data from millions of Americans without their knowledge or consent, a new lawsuit alleges. 

The class action lawsuit, filed in Illinois by three drivers, claims that Allstate used third-party apps to gather information on both customers and non-customers, then sold that data to other insurers and businesses to increase profits.

Allstate Accused of Secretly Tracking Drivers and Selling Their Data

James Eppley, Jennifer Monilaw, and Jacob Winkelvoss filed the proposed class action lawsuit alleging that they unknowingly had their driving behavior monitored after downloading mobile apps embedded with Arity’s software development kit (SDK). The software collected geolocation data, accelerometer readings, speed, and other personal driving details, which the drivers say were later used against them.

Eppley, Monilaw, and Winkelvoss claim that this secret tracking led to higher car insurance premiums and possible exposure of their private data to third parties. The lawsuit argues that Allstate’s Drivewise program, which offers discounts in exchange for voluntary tracking, was just a smokescreen for a much broader and invasive data-harvesting operation.

Lawsuit Alleges Allstate Used Deceptive Practices to Collect and Monetize Driver Data

According to the complaint, Allstate and Arity created a vast database of driving behavior data by embedding tracking software into various mobile apps. Users who downloaded these apps unknowingly activated the SDK, which then pulled real-time location and motion data from their devices every 15 seconds.

To encourage app developers to participate, Allstate and Arity allegedly paid millions to integrate their tracking software. Once collected, the data was not just used for Allstate’s own insurance underwriting but was also sold to other insurers and businesses looking to profit from insights into consumer behavior. The lawsuit claims that this data was then used to justify premium increases, deny coverage, or even drop customers from insurance plans—all without their knowledge.

Other Insurance Companies Face Legal Challenges Over Data Privacy

This isn’t the first time an insurance company has faced legal action over data privacy violations. Recently, the Federal Trade Commission settled a case with General Motors and its subsidiary, OnStar, over allegations that they improperly shared sensitive geolocation and driver behavior data with third parties. Under the settlement, GM and OnStar agreed to restrictions on sharing such data for the next five years.

Allstate is also facing another lawsuit in Texas, where Attorney General Ken Paxton accused the company of illegally using personal driving data to adjust premiums, deny claims, and cancel policies—again without proper disclosure or consent. Meanwhile, Progressive Direct Insurance Co. is battling a class action lawsuit in Massachusetts over allegedly unfair claims denials.

In their lawsuit against Allstate and Arity, the drivers want to represent anyone in the United States whose mobile phone data was collected, distributed, stored, used, or by the two companies. They are suing for violations of the Federal Wiretap Act, Stored Communications Act, Computer Fraud and Abuse Act, Fair Credit Reporting Act, and Illinois Consumer Fraud Act  and Deceptive Business Practices Act.

Case Details

• Lawsuit: Eppley, et al. v. The Allstate Corporation, et al.
• Case Number: 1:25-cv-00815 
• Court: U.S. District Court for the Northern District of Illinois 

Plaintiffs' Attorneys

• Tina Wolfson, Robert R. Ahdoot, Theodore W. Maya, and Christopher E. Stiner (Ahdoot & Wolfson, PC)

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