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

Canada’s privacy commissioner is monitoring a U.S. class-action lawsuit against auto insurers like Allstate, alleging misuse of driver data collected via smartphones. The lawsuit claims Allstate violated the Federal Wiretap Act by tracking driving behavior and attempted to profit from it, and also alleges inaccuracies in driving behavior reports. Allstate maintains it disclosed data collection policies and requires explicit opt-in for data sharing through its Arity platform.

The Office of the Privacy Commissioner of Canada (OPC) is following the case and notes it hasn’t received similar complaints in Canada, but emphasizes the Personal Information Protection and Electronic Documents Act (PIPEDA) requires consent before data collection. Many Canadian insurers utilize usage-based insurance (UBI) or telematics, monitoring driving habits to adjust premiums, with companies like CAA and Intact Insurance emphasizing consent and data privacy.

While data sharing with third parties is permitted with consent, the OPC stresses transparency. Experts suggest consumers may accept data collection if it leads to financial benefits and clear disclosure, but transparency is crucial to avoid deceiving customers. The Insurance Bureau of Canada confirms that expressed consent is required for insurers to use telematics for underwriting in Canada.

(Source：Global News)