Privacy watchdog ‘monitoring’ U.S. auto insurance phone tracking lawsuit

The office of Canada's privacy commissioner says it is 'monitoring' a proposed U.S. class-action lawsuit in which some auto insurers are facing allegations of misusing driver data.

The office of Canada’s privacy commissioner says it is “monitoring” a proposed U.S. class-action lawsuit in which some auto insurers are facing allegations of misusing driver data collected via smartphones and other technology.

The case poses questions of whether insurance companies are taking consumer data collection too far, and if Canadians should be concerned about how that data is being used.

According to a Chicago district court decision on March 3, drivers can try with a lawsuit claiming Allstate Insurance violated the Federal Wiretap Act by monitoring their travel locations, trip distances, speed, acceleration, braking, phone usage and attention to the road, and tried to monetize that data to boost profit.

The claims also allege that Allstate’s data analytics unit, Arity, violated the federal Fair Credit Reporting Act by inaccurately reporting their driving behaviour, including when they rode as passengers.

Allstate argued that ⁠drivers never alleged it actually captured their data, or that their insurance rates went up. It also said its privacy ​policies disclosed the possibility of data collection.

Allstate said in a ​statement on ⁠March 4: “Consumers who choose to share driving data through Arity-powered apps can access emergency assistance, track fuel efficiency and unlock personalized insurance rates after a clear notice and explicit ⁠opt-in ​process.”

Global News sent a request to the Office of the Privacy Commissioner of Canada (OPC) to see if similar action could be taken in Canada, and if drivers have filed similar complaints.

“The OPC is aware of the reports about the class action lawsuit in the United States and is monitoring the matter,” the OPC said in a statement, adding that it has not received any similar complaints.