Minnesota License Privacy Breaches Could Cost Millions

April 23, 2013

Liability claims for improper uses of Minnesota’s driver’s license database could reach several million dollars.

Many cities, counties and state agencies involved in recent breaches are backstopped by insurance and rainy-day funds that would soften the blow of potential payouts. But the St. Paul Pioneer Press reports the sheer scope of the alleged violations suggests those funds could be on the hook for millions of dollars – and the Legislature might have to appropriate millions more for claims against state agencies.

Federal laws governing license data privacy set minimum damages for misuse at $2,500 per incident, plus attorney’s fees.

But the payouts are no sure thing. Cities, counties and the state could reach settlements for less than federal law calls for. They could also fight the claims in court.

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