Carfax Unlawfully Sells Police Accident Reports Without Drivers’ Consent, Class Action Lawsuit Alleges

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A proposed class action lawsuit claims Carfax has unlawfully sold police accident reports to third parties, exposing statutorily protected consumer information without consent.

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Specifically, the 12-page Carfax lawsuit alleges that the company, which collects and sells vehicle history data and police reports relating to automotive accidents, has violated the federal Driver’s Privacy Protection Act (DPPA) by disclosing crash reports without the express authorization of drivers whose personal data is contained therein. The case also claims Carfax has failed to ascertain whether third-party purchasers are permitted under the DPPA to possess the protected information listed in the reports.

The class action suit was filed by a Maryland resident who says he was involved in an accident in December 2023. According to the complaint, Carfax purchased the plaintiff’s crash report—which contained private data from his motor vehicle records, such as his driver identification number and residential address—from the associated law enforcement agency.

The filing contends that the company has since improperly disclosed the accident report without the plaintiff’s permission and without making a reasonable inquiry as to whether the motor vehicle data would be used by the purchaser for a permissible purpose under the DPPA.

“As a company that regularly handles motor vehicle records as part of its business model, Carfax was aware that such records contain personal information, the improper disclosure of which would be injurious to the individuals whose personal information is contained therein,” the suit says.

The case alleges that Carfax routinely obtains and sells personal information from drivers’ motor vehicle records for its own commercial benefit, in violation of federal law.

The lawsuit looks to represent all United States residents who, in the past four years, had their personal information contained in motor vehicle records of their state DMV obtained, used, disclosed and/or resold by Carfax for purposes not permitted by the DPPA, or without establishing a permissible purpose required by the DPPA, without their express consent.

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