The show I saw said that anything that blocks or obscures the plate including for imaging is not legal in MD and DC. Both have wording directly ruling anything like this stuff out. VA legal with no wording ruling it out.
The show did say that it is hard to see that the stuff was used on a plate. (I ghuess tha cop could snap a dig picture and check to see if it is overreflective) They also said that it works somewhat but if the imaging company wants to they could shift the brightness down on a dig image and likely get the plate #.
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