California DMV cashed in $49M by selling driver data in secret

Millions of Californians handed over personal information to the California DMV believing it was protected. Instead, the agency made $49 million last year by giving companies access to driver records โ€” without telling the residents whose data was used.

Fullerton DMV office front entrance during Real ID hours extension in California

An investigation by InvestigateTV found 23 state DMVs earned at least $282 million in revenue during the 2024โ€“2025 fiscal year from providing private driver data. Georgia topped the list at $53 million, with California close behind at $49 million.

The buyers included insurance companies, data brokers, vehicle manufacturers, universities, and even private investigators. Provided records contained names, home addresses, phone numbers, and driverโ€™s license numbers.

The loophole enabling this practice is the Driverโ€™s Privacy Protection Act (DPPA), passed in 1994. It blocks public disclosure โ€” but carves out 14 broad exceptions, including background checks, insurance evaluations, and private investigations. States then impose per-record fees โ€” often $5 each โ€” or sign high-value contracts worth thousands.

Most Californians had no idea it was happening.

Jay Jang, vice president of Eden Auto in LA Koreatown, said on the 27th that even people in the business โ€œhad no idea,โ€ adding that โ€œthe general public almost certainly doesnโ€™t know.โ€

A resident from San Antonio, Texas, identified as Nikki, said she never imagined โ€œsomeone could just pay to buy my address,โ€ calling it โ€œa direct threat to safety.โ€

DMV officials disputed the characterization of a โ€œdata sale,โ€ arguing the fees are simply โ€œadministrative cost recoveryโ€ permitted under federal law. The Virginia DMV also insisted that data is only released when โ€œstrict requirementsโ€ are met.

Privacy groups say the law is outdated. Only three states โ€” Delaware, Wisconsin, and Wyoming โ€” allow drivers to opt out of DMV data sharing. Everyone else has no choice.

James Lee, head of the Identity Theft Resource Center, said driver data is โ€œfar more valuable than in the pastโ€ and argued that โ€œprivacy rights shouldnโ€™t depend on where someone lives.โ€

Advocates warn Congress must act before a $49 million business grows even bigger.

BY HANKIL KANG [kang.hankil@koreadaily.com]