Vertafore Illegally Redisclosed Florida Drivers’ Motor Vehicle Records, Class Action Alleges

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A proposed class action alleges Vertafore has illegally obtained, used and redisclosed millions of motor vehicle records sourced from the Florida Department of Highway Safety and Motor Vehicles (FDHSMV) without obtaining prior consent to do so. 

The 21-page case alleges Vertafore, an insurance software solutions provider who deals in massive amounts of consumer data, has violated the Driver’s Privacy Protection Act (DPPA), a federal law that prohibits any state department of motor vehicles from releasing or using drivers’ personal information obtained by the department in connection with a motor vehicle record. The DPPA requires that individuals provide permission before their personal motor vehicle data is sold or released to third-party marketers, the suit, filed on July 31 in Florida, says. 

“The DPPA thus safeguards the personal information of licensed drivers from improper use or disclosure,” the complaint reads. “It protects a fundamental property interest by ensuring that states cannot impermissibly burden the right to travel by compelling the disclosure of sensitive, personal information that state departments of motor vehicles collected.” 

The suit describes Vertafore as having a central role in the modern American economy in that it collects and sells vast amounts of data covering “the most intricate details” of consumers’ financial lives. The data in Vertafore’s possession—such as names, addresses, dates of birth, Social Security and driver’s license numbers, vehicle registration data and more—“contains the key” that can unlock someone’s identity, the complaint says. For its part, Vertafore, according to the case, has reportedly developed sophisticated system management software for more than 20,000 insurance agencies who use the company’s products to link clients, policies, claims and vendors. 

According to the lawsuit, Vertafore has “aggressively” acquired companies with the goal of expanding into new markets and gaining assets with proprietary data sources. One such acquisition, the suit says, was Deerfield Beach, Florida’s QQ Solutions Inc., a leading provider of “innovative and powerful” agency management systems. 

It was through Vertafore’s acquisition of QQ Solutions that the defendant “surreptitiously” obtained proposed class members’ motor vehicle records from the FDHSMV, the filing alleges, stating that QQ had in its possession the entire FDHSMV database. The lawsuit says that although a memorandum of understanding (MOU) in connection with QQ Solutions’ acquisition of the Florida motor vehicle database outlined restrictions and obligations with regard to the disclosure and handling of drivers’ records—and extended to any successor who may acquire the database in the future—Vertafore, after acquiring QQ, “ignored these contractual obligations and continued to surreptitiously obtain” proposed class members’ data from the agency. From the complaint (emphasis added, sic throughout): 

“While the effect of acquisition or merger permitted the Purchaser’s [QQ Solutions’] successor in interest to be eligible to apply for obtainment of the MVRs, the MOU provided strict legal obligations required prior to purchasing a company which had previously acquired the motor vehicle record database. The Purchaser’s successor would be required to give timely notice of the planned acquisition, permit a representative of the Florida Department of Highway Safety and Motor Vehicles to determine if the successor had a DPPA permissible use to access the purchaser’s MVR database of restricted consumer data; moreover, rule out any non-permissible uses such as direct marketing. Since Defendant acts as a ‘Bulk Requestor’, and a ‘Bulk ReSeller,’ of the motor vehicle records, referencing a person or entity that obtains the entire database of motor vehicle records, and periodic updates, from State Department of Motor Vehicles, then rediscloses such in bulk to ‘authorized recipients.’ additional scrutiny would be applied.” 

Over a period of years and continuing to this day, Vertafore has unlawfully redisclosed proposed class members’ Florida motor vehicle data to its customers—more than 20,000 insurance agencies and roughly 1,000 carriers and managing general agents, the suit claims. As a result of Vertafore’s conduct, proposed class members have, among other harm, lost control over their protected personal data and the privacy they were ensured of when they submitted their details to the FDHSMV, the complaint says. 

The lawsuit looks to represent all individuals whose motor vehicle records Vertafore surreptitiously obtained from the Florida Department of Highway Safety and Motor Vehicles without authorization or express written consent, using QQ Solution’s FTP access code to obtain such information and then using and redisclosing the information to third parties. The suit also looks to cover a class of individuals in Florida who fit the same criteria.

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