Texas Attorney General Ken Paxton filed a lawsuit against Allstate on Tuesday alleging the company covertly monitored customers' driving habits in a bid to raise rates. The suit, which was filed in Montgomery County,

An expert said the auto industry should pay attention to Texas' data privacy laws: "What Texas has done is funded it, staffed it and supported it."

Don't mess with Texas, especially if you're an insurance company violating privacy laws to raise rates. That's how the state's attorney general feels, anyway, after accusing Allstate of acquiring (and reselling) the smartphone data of millions of drivers.

Legislators and Data Privacy Experts are voicing growing concerns about the amount of data that car manufacturers and insurance companies can access and use.

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.

According to the lawsuit, AllState and its subsidiary harvested trillions of miles of location data from over 45 million insured customers across the nation, resulting in the 'world's largest driving behavior database.

Allstate ALL.N has been sued by the state of Texas, which accused the insurer on Monday of illegally tracking drivers through their cell phones without their consent and using the data to justify charging more for car insurance.

Texas Attorney General Ken Paxton claims Allstate collected the data through mobile apps and by purchasing it from car manufacturers.