More than 50% of people calling third-party administrators (TPAs) with auto glass claims already have a preferred shop, according to Lisa Langford.
Langford, the LYNX senior director of client experience, made the statement during cross-examination at the June 30 emergency hearing over a potential temporary restraining order and a preliminary injunction against State Farm and Safelite/Safelite Solutions.
“Isn’t it true, Miss Langford, that in the large majority of cases – certainly over 50% – that the customer already has a glass shop of preference when they make the call [to submit an auto glass claim]?” John Taladay, attorney for Safelite, asked.
Langford agreed.
What’s a Secret?
All the questions Safelite’s counsel asked Langford explored whether or not the information in the allegedly misappropriated trade secrets could actually be considered confidential. He began by contending that shops wouldn’t want the information stored in LYNX’s METRYX registry to be kept a secret.
“They [enter that information] because they want the insurers to have [it] so that the insurers will direct business their way … [Retailers] don’t want it to be a secret that they’re out there; they want to be able to serve insureds and repair glass and get reimbursed for it, right?” he asked Langford.
Though she agreed, Langford added that there was also information in METRYX that shops would still consider confidential, like “the last four digits of [a technician’s] driver’s license.” Langford also reiterated that LYNX did not have a dedicated database specifically for State Farm. Information from the METRYX registry is used by multiple insurers, she said.
Looking Back 20 Years
The attorney representing Safelite next referred to a 2005 glassBYTEs article announcing the launch of METRYX. He pointed Langford to a quote from Leo Cyr, then vice president of the National Glass Association’s (NGA) now-defunct auto glass division.
“The information METRYX can make available to customers is more extensive than in the past, but that’s exactly the point,” Cyr had said. “The information that will be communicated to customers is not confidential. This is information every glass company should want every potential customer to see. The registry allows customers to use the professional credentials that so many of our industry adhere to and invest in.”
Langford said she “didn’t understand” why Cyr would say that.
Location, Location
The questioning then turned to shop location information. Langford had previously testified that when shop owners/managers provide their information in METRYX, they must select from a LYNX-curated list of zip codes to indicate their service area.
“I don’t mean to be crass, but LYNX didn’t invent the zip code, correct?” Safelite’s attorney asked. “The information provided [to State Farm] is a list of zip codes. There’s nothing confidential about the zip codes, correct?”
Langford agreed that there was nothing confidential about the zip codes themselves.
Customer Preference
The attorney also asked about LYNX’s pricing structure, but those questions and answers were largely redacted from the transcript. He then turned to the topic of consumer choice, claiming that more than 50% of consumers choose shops before calling in their claim. If the customer already has a shop of choice, the TPA doesn’t have to assign the job to anyone and therefore doesn’t use any of the data stored in METRYX anyway, the attorney said.
“In the majority of the cases, the trade secrets [LYNX] is claiming here really don’t apply, isn’t that right?” he asked Langford.
According to the court record, Langford responded with a shrug.
glassBYTEs/AGRR will cover more of Lisa Langford’s testimony and other recently unsealed lawsuit documents in coming newsletters.
