STAHL, Circuit Judge.
In this putative class action brought by Matthew K. Downing alleging that Globe Direct LLC violated the Driver's Privacy Protection Act (DPPA), 18 U.S.C. §§ 2721-25, the district court granted Globe Direct's motion on the pleadings based on Downing's failure to join the Commonwealth of Massachusetts, which the court found to be an indispensable party. Even if we were to assume that the district court abused its discretion in so finding, we affirm because we see no violation of the DPPA by Globe Direct.
On March 3, 2008, the Commonwealth of Massachusetts's Registry of Motor Vehicles (RMV) issued a "Request for Response" (RFR) for its "Registration Renewal Notice Program" (the program). The RFR sought proposals from outside contractors to perform the service of printing and sending to Massachusetts drivers their motor vehicle registration renewal notices along with advertisements. The stated goals of the program included assisting the RMV "in carrying out its registration renewal functions," "reduc[ing]
On April 29, 2008, Globe Direct, a wholly-owned subsidiary of the New York Times Company, submitted a bid in response to the RFR. The bid stated that Globe Direct "underst[ood] and accept[ed] the entire RFR," and its proposal largely mirrored the language and structure of the RFR. Globe Direct, presumably responding to the RFR's stated goal of raising revenue for the RMV, proposed to contribute 25% of its net margin to the RMV. Massachusetts accepted Globe Direct's bid, and on August 12, 2008, the parties signed a contract, of which the RFR was considered a part and pursuant to which Globe Direct was to serve as the contractor for the registration renewal program.
Globe Direct began performing its contract duties in January 2009. In May 2009, Downing, the owner of a 1998 Toyota who had provided his name and address to the RMV, received a registration renewal notice sent by Globe Direct. The notice also included advertisements from Bath Fitter, Jiffy Lube, NTB, and AAA. Downing had never given his consent to the RMV to provide his personal information to third parties for purposes of solicitation or marketing.
On September 18, 2009, Downing filed a putative class action complaint
The DPPA lays out a general rule prohibiting disclosure of drivers' "personal information," id. § 2721(a)(1), which is defined by the statute as "information that identifies an individual, including an individual's photograph, social security number, driver identification number, name, address ..., telephone number, and medical or disability information ...," id. § 2725(3). However, the DPPA provides fourteen "[p]ermissible uses" for which drivers' personal information may be disclosed. Id. §§ 2721(b)(1)-(14). Disclosure is permissible "[f]or use by any government agency ... in carrying out its functions, or any private person or entity acting on behalf of a Federal, State, or local agency in carrying out its functions." Id. § 2721(b)(1). Disclosure is also permissible "[f]or bulk distribution for surveys, marketing or solicitations if the State has obtained the express consent of the person to whom such personal information pertains." Id. § 2721(b)(12). Downing alleges that Globe Direct's use of DPPA-protected personal information to send advertisements to Downing and those similarly situated constituted a DPPA violation because none of the "permissible uses" was applicable.
On February 2, 2010, Globe Direct answered the complaint, asserting various affirmative defenses, including qualified and sovereign immunity, and argued that Downing's claims were barred because Massachusetts was a necessary and indispensable party and that Downing's claims failed because Globe Direct's use of personal information was permitted by the DPPA pursuant to the government function exception. See id. § 2721(b)(1). On October 8, 2010, Globe Direct filed a motion for judgment on the pleadings, elaborating on the arguments listed in its answer.
On August 25, 2011, the district court granted Globe Direct's motion on the pleadings, reaching only the issue of joinder. Downing v. Globe Direct LLC, 806 F.Supp.2d 461, 470 (D.Mass.2011). The district court first determined that Massachusetts was a necessary party under Federal Rule of Civil Procedure 19(a) due to its interests in its contract with Globe Direct, which would be "impaired as a practical matter" by its absence from the litigation. Id. at 467 (internal quotation marks
We would normally review a district court's Rule 19 determination for abuse of discretion, Jiménez v. Rodríguez-Pagán, 597 F.3d 18, 24 (1st Cir.2010), but here, we can short-circuit the district court's analysis. Even were we to find an abuse of discretion on the joinder issue, which we need not do, we approve of the district court's result because we see no violation of the DPPA. Though the district court did not reach the substantive DPPA claim, because the parties fully briefed the issue before the district court, we have discretion to resolve that issue.
The district court granted judgment on the pleadings for Globe Direct under Federal Rule of Civil Procedure 12(c). We treat a motion for judgment on the pleadings much like a Rule 12(b)(6) motion to dismiss. Pérez-Acevedo v. Rivero-Cubano, 520 F.3d 26, 29 (1st Cir.2008). To survive Globe Direct's motion, Downing's complaint must allege "`enough facts to state a claim to relief that is plausible on its face.'" Elena v. Municipality of San Juan, 677 F.3d 1, 3 (1st Cir.2012) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). Even taking all the complaint's well-pled allegations as true and viewing all other facts in a light most favorable to Downing, see id., we are convinced that the registration renewal program and Globe Direct's participation therein falls under the government function exception to the DPPA's general rule of nondisclosure, see 18 U.S.C. § 2721(b)(1), and that Globe Direct therefore is not liable under the statute.
Downing concedes that if advertising were not a component of the program, the DPPA would allow Massachusetts to contract with a third party to send out its registration renewal notices, and to provide that third party with statutorily protected personal information, because sending out renewal notices is clearly a government function. The only question is whether the integration of advertising takes the registration renewal notice program outside of scope of the (b)(1) exception.
Downing argues that because of the advertising inserted into the renewal notice mailings, a different exception, that under subsection (b)(12), fits more closely to
The structure of the DPPA supports the idea that one permissible use does not define or control another. Each "permissible use" under subsection (b) is a specific carve-out from liability. Once a person's activities are deemed to fall within one of the carve-outs, subsection (a)'s general rule of nondisclosure no longer applies. See 18 U.S.C. § 2721(a)(1) ("A State department of motor vehicles ... shall not knowingly disclose ... personal information ... except as provided in subsection (b)...."). Each "permissible use" under subsection (b) is like a key to unlock a door through which a person may go to escape DPPA liability. So long as Globe Direct may unlock the (b)(1) door, the fact that they may or may not possess the key to the (b)(12) door is irrelevant to our inquiry.
But we still must answer the question of whether the program is permissible under subsection (b)(1).
We do not think there is a discrete separation between the advertising component of the program and the undisputedly legitimate government function of sending out registration renewal notices. According to the RFR, in addition to assisting the
This situation is unlike that in Pichler, where the primary (and impermissible) purpose of collecting the statutorily protected personal information was union organizing, which the court found the union had "attempt[ed] to mask ... behind the veil of a [permissible and severable] litigation purpose." Id. at 396. Here, the advertising function is inextricably linked to the proper government functions of registration renewal and increasing the availability of funds for RMV programs. We think that the integration of the advertising into the structure of the program renders that advertising a part of the government function exempted from the statute's reach under subsection (b)(1).
We are not alone in this line of analysis. Post-Pichler, both the Fourth and Eleventh Circuits have declined to impose DPPA liability where solicitation or advertising was part and parcel of a permissible use of statutorily protected information. See Maracich v. Spears, 675 F.3d 281, 293-94 (4th Cir.2012) ("[B]ecause the solicitation was entirely consistent with state law, was integral to, and was, indeed, inextricably intertwined with the [defendants'] permissible use of the Buyers' personal information pursuant to the litigation exception, the Buyers' claim fails as a matter of law."); Rine, 590 F.3d at 1223 (holding, in a factual situation similar this case, that "[f]unding public programs through commercial advertising is a legitimate agency function"); see also In re Imagitas, Inc., Drivers' Privacy Protection Act Litig. (Imagitas II), Nos. 3:07-md-2-J-32JRK, 3:07-cv-389-J-32HTS, 3:07-cv-390-J-32HTS, 3:07-cv-391-J-32HTS, 3:07-cv-392-J-32HTS, 3:07-cv-393-J-32HTS, 3:07-cv-394-J-32HTS, 3:07-cv-395-J-32HTS, 2011 WL 6934127, at *3-4 (M.D.Fla. Dec. 30, 2011) (upholding both a previous iteration of the Massachusetts registration renewal notice program under subsection (b)(1) because it was a legitimate government function "to offset costs through commercial advertising," as well as upholding similar programs in Missouri and Ohio); cf. Statement of Interest of the United States at 16-19, In re Imagitas, Inc., Drivers' Privacy Protection Act Litig. (Imagitas I), Nos. 3:07-md-2-J-32HTS & 3:06-cv-690-J-32HTS, 2008 WL 977333 (M.D.Fla. Apr. 9, 2008) (laying out the government's interpretation that raising revenue through advertising, where statutorily protected personal information is not disclosed to the advertiser, is a legitimate government function under subsection (b)(1)).
Massachusetts law leaves ample room for the RMV to create and engage in the program as a proper agency function under subsection (b)(1). See Rine, 590 F.3d at 1223-24 (examining whether a similar program was consistent with Florida law); Imagitas II, 2011 WL 6934127, at *3-4 (examining whether similar programs in Massachusetts, Missouri, and Ohio were consistent with state law). Massachusetts law allows the Commonwealth to enter into service contracts for purposes "needed by the various executive and administrative departments and for other activities of the commonwealth," see Mass. Gen. Laws ch. 30, §§ 51-52, the process through which Massachusetts and Globe Direct entered into their contract. Additionally, Massachusetts law explicitly allows for the use of advertising to raise revenue in analogous transportation contexts. See Mass. Gen. Laws ch. 81, § 7C (permitting advertisements
Downing makes much of the fact that the Supreme Court has approved of the DPPA as a means to "regulate[] the universe of entities that participate as suppliers to the market for motor vehicle information," Reno v. Condon, 528 U.S. 141, 151, 120 S.Ct. 666, 145 L.Ed.2d 587 (2000), and asserts that this necessitates a finding that Globe Direct is liable under the statute. But we think that cuts against his argument. Under this scheme, there is no sale of any statutorily protected personal information, and neither Massachusetts nor Globe Direct supplies the market with such information.
Because we agree that judgment for Globe Direct is proper, as Downing cannot state a claim under the DPPA, we affirm the ruling of the district court.