Drivers Privacy Protection Act Amendment Sends Auto Dealers Looking for New Ways to Reach Potential Customers

In the closing days of Congress in the summer of 2000, Senator Richard Shelby (R-AL) attached a provision to the transportation appropriations bill that seriously changed the implementation by the states of the Drivers Privacy Protection Act. That act, passed several years ago, required states to provide notice and opt-out procedures before a state could make its drivers license and motor vehicle license lists available to direct marketers, among others. The Shelby amendment turned the act on its head and required that states offer notice and opt-in before making the lists available.

A large coalition was formed to lobby against the provision, including The DMA, direct marketing companies, state motor vehicle administrators, insurance companies, the National Association of Automobile Dealers, major car manufacturers, and others. However, in the final days of the first session, Shelby decided to stick with his language, with a few exceptions. Others were unwilling to challenge Shelby because of important transportation projects in the bill, and the amendment became law. The effective date for implementation is June 1, 2000.

Some of those opposed to the Shelby amendment hoped that the Supreme Court case Reno v. Condon, which challenged the constitutionality of the Federal government's ability to control the manner in which states administered their own motor vehicle lists, would overturn the original Act. However, the court ruled that the Drivers Privacy Protection Act, and by extension the Shelby amendment, which was specifically mentioned in the decision, was constitutional.