Annie Youderian reports:
Businesses can buy and resell motor vehicle records in bulk without actually using them, so long as they intend to use them for “permissible purposes,” the 5th Circuit ruled, dismissing six class actions challenging the practice.
Under the Driver’s Privacy Protection Act (DPPA), businesses must demonstrate a “lawful purpose” for obtaining DMV records containing drivers’ names, photographs, Social Security numbers and other personal information. Private companies can use this information to prevent insurance fraud, verify a worker’s driver’s license, notify the owner of a towed or impounded vehicle, and conduct research and surveys, among other permissible uses. Government agencies, law enforcement officers and licensed private investigators are also authorized to use DMV records.