Reno v. Condon

Background

The dispute involves the Driver’s Privacy Protection Act (DPPA), a federal law that limits how states and private parties can disclose or resell personal information from motor vehicle records. The State of South Carolina and its Attorney General sued, arguing the law improperly forces the State to change how its motor vehicle department handles and sells drivers’ information. Lower federal courts agreed and blocked the law as applied to the State.

Reasoning

The Court asked whether Congress could lawfully regulate the sale and disclosure of DMV information and whether the DPPA unlawfully compelled state government action. The Justices concluded Congress acted under its power to regulate interstate commerce because drivers’ information functions as an article in interstate commerce when sold or used across state lines. The Court rejected arguments that the law unconstitutionally commanded state legislatures or officers, explaining the DPPA regulates states as sellers of data rather than forcing states to enact laws or perform federal duties. The opinion relied on prior decisions that allow Congress to regulate state activity when it governs the activity itself.

Real world impact

The ruling lifts the injunctions that had blocked enforcement against South Carolina and lets the DPPA operate nationwide. States may no longer freely sell or disclose many categories of driver information without meeting the DPPA’s rules and exceptions. The decision affects state DMV revenue practices, private resellers of DMV data, and the way states must train employees and track disclosures to avoid penalties. The opinion makes clear federal regulation of the commercial market for DMV data is constitutionally permissible.