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Court: Motor Vehicle Records Can Be Sold in Bulk

PRIVACY LAW—U.S.

July 20, 2010

The New Orleans Appeals Court fifth circuit has ruled that businesses can buy and resell motor vehicle records in bulk even if they are not used but are intended for permissible purposes, reports Courthouse News Service. The ruling upheld a lower court's dismissal of six class-action lawsuits, which alleged that the state of Texas's bulk sale of the records to businesses intending to retain them for future use was illegal under The Driver's Privacy Protection Act, which requires businesses to demonstrate "lawful purpose" for obtaining the records. The court concluded that under the act, buying records in bulk is legal whether or not the buyer uses every piece of information obtained.
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