According to newly confirmed reports, the Department of Motor Vehicles (DMV) in several states, including Delaware, Oregon, Texas, Florida, and Wisconsin, has been selling personal information belonging to drivers to bulk-buyers. The hidden DMV marketplace has been making tens of millions of dollars from the sales.
Parties in the hidden DMV marketplace include: private companies, private investigators, and insurers. In most states, drivers cannot legally opt out.
How the DMV Data Sales Work
In Oregon alone, the DMV has made over $60 million since 2019 from the sale of drivers’ personal information. The sales are legal as per the Driver’s Privacy Protection Act (DPPA) of 1994, which allows certain qualified entities to purchase driver information for approved purposes.
Currently, there are 15 companies buying driver data in bulk in Oregon. These buyers are then selling to other qualified entities. Some of these companies include LexisNexis and Experian.
State officials are suggesting that regular audits to be conducted on these buyers to ensure that they adhere to rules.
The driver data that is being traded includes records such as:
- Convictions.
- Accidents.
- Suspensions/ restrictions.
- Other license details, besides photographs.
Still, there are no reports indicating the amount these companies are making by selling the data.
Why this is Controversial Even Though Legal
The DPPA was passed in 1994 following the murder of actress Rebecca Schaeffer, who was killed by her stalker, who had obtained her home address from DMV through a private investigator. Although this case fueled the federal law to restrict access to DMV records, there are several exceptions.
Although state law prohibits the sale of DMV data to marketers or solicitors, these exceptions are too broad. Lena Cohen of the Electronic Frontier Foundation warns there is no transparency in the data broker industry, making it hard for the public to know who has access to their personal data.
Senator Bernie Sanders has also criticized the trade. In 2019, he said that no one, including larger corporations like Facebook and Google, should make money by selling personal information without consent. He urged Congress to end this practice because the violates the privacy of ordinary citizens.
You Cannot Opt Out
Residents in Oregon and other states are unable to stop the DMV from selling their data. The law only revokes a buyer’s access to information if they misuse it.
Where the Money Goes
The $60 million made from the sale of data since 2020 has been allocated to:
- The DMV
- The Oregon Department of Transportation (ODOT)
- The state agency that manages the data system.
What You Can Do
Although it’s impossible to stop the DMV from selling your information, you can:
- Check your state DMV website and see what information is shared and with whom.
- File a complaint if you find out that your information was sold illegally.
- Support legislation that prevents the sale of personal data.
Conclusion
If you hold a U.S. driver’s license, your data could be in the hands of buyers, but unfortunately, you might never know who has it. While you cannot do anything to prevent the sale of your data, advocates are pushing for restrictions to illegalize the sale of personal data. This is necessary considering that personal data is being misused, especially when it falls into the wrong hands.