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."

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.

Paxton accuses Allstate of collecting driver location and movement data without consent to raise insurance rates in the state.

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.

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.