CarSure, LLC, a Texas-based aftermarket automotive warranty seller, faces a lawsuit brought by a group of Wisconsin car owners who claim that the company violated the Driver’s Privacy Protection Act (“DPPA”) by purchasing the motor vehicle records of Wisconsin car owners from third-party data suppliers.
According to the suit, CarSure purchased data from a third-party supplier, particularly the motor vehicle records of vehicle owners with expiring manufacturer warranties, and then used that data to market its warranties through letters designed to appear official, but which, of course, were not—disclaiming any association with car makers or dealers in small print at the bottom of the letter. The plaintiffs are seeking approximately $2,500 in damages for each violation.
TAKEAWAY: This case serves as another reminder that advertisers should be aware of the sources from which they obtain data. Advertisers who purchase data from third parties should look under the hood to see where the data comes from before engaging with third party data suppliers.