CarSure Class Action Alleges Driver Data Privacy Violations

A class action lawsuit has been filed against the auto protection company CarSure for alleged violations of privacy laws designed to keep driver’s license data secure.

According to the complaint, the federal Driver’s Privacy Protection Act (DPPA) “requires all states to protect the privacy of personal information contained in an individual’s motor vehicle records, including, but not limited to, the driver’s name, address, and phone number.”

“[T]he DPPA does not allow private companies to obtain this information to solicit potential customers, advertise, or harass individuals – which is precisely what CarSure has done to Plaintiff and the other Class members,” the class action asserts.

The data privacy class action lawsuit states that CarSure sells service and repair warranties for automobiles, so CarSure markets its products to consumers who own cars with recently, or soon-to-be, expired warranties from the manufacturer.

The complaint contends that CarSure identifies its potential customers by purchasing data from “third-party data suppliers,” who in turn obtained their data from motor vehicle records. The class action argues that buying driver’s names and home addresses through state motor vehicle departments and using that information to send advertising is a direct violation of the DPPA.

According to the CarSure class action, the DPPA “was enacted by Congress due to widespread concerns that personal information gathered by the states in connection with the licensing of motor vehicle drivers and registration of vehicles was being released, and even sold, to persons with no legitimate purpose.” Congress found that drivers have a privacy interest in their personal information, and acted to protect that information from indiscriminate sale to third parties. The class action argues that it is part of CarSure’s business model to violate this federal law.

The CarSure class action lawsuit alleges that the Better Business Bureau has received 125 consumer complaints against the company, mostly for similar practices. The complaint cites several complaints where people are concerned that CarSure has “my name, address and info on my vehicle…” In addition, sometimes the mailers sent contain misleading phrases like “FINAL NOTICE,” or are made to look like official documents from a car manufacturer.

Plaintiff Linda Kundinger states that she is a resident of Wisconsin who received a letter advertisement from CarSure to her home address. The letter told Kundinger that it was a “final notice,” and that she had to “act now” because her auto warranty was expiring. The marketing material identified the make, model, and year of the vehicle Kundinger owned.  The complaint contends that CarSure purchased Kundinger’s address from a third-party, who obtained it from the Wisconsin DMV.

The data privacy lawsuit requests certification of a Class of all persons “whose name and mailing address” were obtained from a motor vehicle record and acquired by CarSure to be used “for purposes of marketing and/or solicitation” since May 9, 2013. The class action seeks damages in the amount of $2,500 for each violation of the DPPA, as well as punitive damages. In addition, the complaint asks for an injunction stopping CarSure from obtaining and using such information in the future.

Kundinger is represented by Bruce A. Schultz of Coyne, Schultz, Becker & Bauer SC, Andrew B. Miller and Jacob M. O’Brien of Starr Austin & Miller LLP, and Adam J. Levitt and Amy E. Keller of Dicello Levitt & Casey LLC.

The CarSure Driver Data Privacy Violation Class Action Lawsuit is Linda Kundinger v. CarSure LLC, Case No. 3:17-cv-00343, in the U.S. District Court for the Western District of Wisconsin.