Cross-Sell Class Action: DMV Records Used For Auto Warranty Letters

A class action lawsuit alleges that Cross-Sell LLC obtains motor vehicle records with the intent of selling the information for direct marketing purposes without consumer consent and in violation of federal law.

Plaintiff Arthur Lopez says that his motor vehicle records, including his name, address, VIN number, vehicle make, model, and license plate number, were collected by Cross-Sell and then sold to defendant North America Vehicle Insurance Specialists (NAVISS), which resulted in a solicitation letter being sent directly to him.

Likewise, plaintiff Mark Laning says he received a letter regarding solicitation of an extended vehicle warranty from NAVISS, but he never disclosed his vehicle information to the company.

Neither plaintiff claims to have had a prior commercial relationship with Cross-Sell or NAVISS nor did they give express consent for the companies to access their collective DMV records.

According to the class action lawsuit, this practice is a direct violation of the Driver’s Privacy Protection Act (DPPA).

“Congress enacted the DPPA to restrict the disclosure of personal information in such records without the consent of the individual to whom the information pertains,” the Cross-Sell class action lawsuit states.

However, some businesses are being allowed to purchase DMV records data in bulk, which they then re-sell it over and over with very little oversight, prompting a class action lawsuit.

Both Lopez and Laning explain that when registering their vehicles with their state’s Motor Vehicle Department, they were legally obligated to provide personal and sensitive information for purposes required by law to be able to operate their vehicle within their state.

However, this obligation did not allow the release of such personal and sensitive information to any such individual or corporation such as Cross-Sell LLC, prompting both Lopez and Laning to file this class action lawsuit on July 8 in a Texas federal court.

In fact, plaintiffs’ DMV records were obtained by Cross-Sell for impermissible DPPA purposes, without notice or express consent, and they were unaware that Cross-Sell would disclose or resell their information to NAVISS, the complaint states.

This unauthorized access to DMV records creates a “reasonable fear of present and future injury” the plaintiffs argue, forcing them to take measures to protect their privileged information from risk of access and probable harm.

According to the lawsuit, Cross-Sell, acting as a reseller had an actual legal duty to adhere to the same requirements of the Department of Motor Vehicles when re-releasing motor vehicle records, including making sure they had a DPPA permissible use and express consent to obtain these records.

Instead, plaintiffs’ and potential Class Members’ privacy will continued to be violated by Cross-Sell, NAVISS and other affiliated companies – companies they’ve never heard of, companies they have no relationship with, and companies plaintiffs would never choose to trust with their motor vehicle records, the complaint states.

Both Laning and Lopez are bringing forth this proposed nationwide consumer class action lawsuit on behalf of themselves and other similarly situated individuals who did not give express consent to the release of their DMV records and who were victims of Cross-Sell’s and NAVISS’s unfair, deceptive, and unlawful business practices that were in direct violation of consumer privacy rights and the Driver’s Privacy Protection Act.

The lawsuit states: “For all consumers that have ever been harassed by direct marketing letters selling ‘extended vehicle warranties’ falsely advertising that your vehicle warranty had expired, wondered how these companies knew your personal information . . . this class action will identify sources used to obtain this personal information and implement such unauthorized activities, and the elements of a business enterprise implemented by the obtainment of  state motor vehicle records, directly or indirectly, then re-disclosed and/or re-sold, in order to aid and abet the direct marketing industry, acts done without the individuals’ express consent, a violation of the Driver’s Privacy Protection Act (“DPPA”).

The plaintiffs are seeking certification of the Class, injunctive and equitable relief, and an injunction restraining the defendants from obtaining, re-disclosing, or reselling motor vehicle records for consumer marketing purposes.

Another DPPA class action lawsuit was filed in a Florida federal court by Attorney Joseph H. Malley, the same attorney representing these plaintiffs. That class action lawsuit alleged that motor vehicle information sold to direct marketers not only violated privacy laws, but it also put a woman in danger who was trying to escape a domestic violence situation.

The plaintiffs and proposed Class are represented by Joseph H. Malley of the Law Offices of Joseph H. Malley P.C.

The Cross-Sell DMV Records Class Action Lawsuit is Lopez, et al. v. Cross-Sell LLC, et al., Case No. 3:16-cv-02009, in the U.S. District Court for the Northern District of Texas.