In a major data privacy settlement, Bleacher Report recently agreed to pay $4.8 million to resolve a class action lawsuit alleging the company violated the Video Privacy Protection Act (VPPA). The case, filed in 2024, accused Bleacher Report of improperly sharing user data with Facebook through the Meta Pixel without obtaining consent. This settlement reflects ongoing concerns about privacy and data security in digital media, highlighting how personal information can be shared and monetized without adequate user knowledge or authorization.
Background of the Lawsuit
The class action lawsuit, Jabari Sellers et al. v. Bleacher Report, Inc., was filed in Miami-Dade County, Florida. The plaintiffs claimed that Bleacher Report used Meta Pixel to share identifiable user data, including video viewing history, with Facebook. This allegedly happened whenever users logged into both Bleacher Report and Facebook on the same browser, effectively linking users’ viewing preferences with their social media profiles. Under the VPPA, it is illegal to disclose such information without explicit user consent, especially when it can identify individuals as having requested or accessed specific video materials.
The VPPA, enacted in 1988, was initially intended to protect video rental records but has since been applied to digital platforms to address evolving concerns around data sharing and privacy. The law forbids companies from disclosing a consumer’s personally identifiable information (PII) related to video services unless certain exceptions apply, none of which Bleacher Report allegedly met in this case.
Key Details of the Settlement
In agreeing to settle, Bleacher Report has not admitted any wrongdoing but has accepted the $4.8 million settlement to avoid prolonged litigation. The settlement covers eligible class members who had both a Bleacher Report account and a Facebook account and accessed videos on Bleacher Report’s website from January 25, 2021, to May 21, 2024. Class members must submit a valid claim by the specified deadline to qualify for a portion of the settlement funds.
Key points of the settlement include:
- Monetary Compensation: The $4.8 million will be distributed among verified claimants after deductions for attorney fees, administration costs, and other expenses. Each eligible user will receive a share based on the number of claims submitted, meaning the actual payout will depend on the total number of claims.
- Policy Changes: As part of the settlement, Bleacher Report agreed to suspend the use of Meta Pixel on pages that display video content or that have URLs identifying video content, unless the VPPA is amended or Bleacher Report obtains VPPA-compliant consent.
- Deadline and Important Dates: The final claim submission deadline was August 23, 2024, and a fairness hearing took place on August 8, 2024, where class members were given the opportunity to voice any objections or concerns before final court approval.
Privacy Implications for Digital Media
The Bleacher Report case underscores broader privacy challenges facing digital media platforms that collect and share user data. The lawsuit has raised awareness about how companies handle and share consumer data, often unbeknownst to the users. The Meta Pixel tool, a tracking device used by many websites to gather data on user behavior, has been implicated in several privacy-related lawsuits, indicating that users may be sharing far more information than they realize.
In recent years, the VPPA has become an essential legal tool for protecting users’ digital privacy rights, especially on platforms with video content. The Bleacher Report case, much like similar suits against other streaming platforms, serves as a cautionary tale for companies leveraging tracking tools. Digital media firms may need to prioritize transparency in data collection practices to avoid further legal issues and retain consumer trust.
Impact on Users and Digital Privacy Standards
For users, the Bleacher Report settlement presents both a financial remedy and a safeguard for future data privacy. Eligible members who submitted timely claims will receive a payout based on the final fund allocation. Importantly, the policy changes that Bleacher Report has agreed to could set a precedent for other companies to adjust their data-sharing practices to comply with privacy laws like the VPPA.
This case reflects the increasing scrutiny on data privacy practices across the digital landscape. While Bleacher Report is the latest high-profile name involved in such lawsuits, privacy violations tied to data-sharing platforms like Meta Pixel indicate that other digital services could face similar challenges. This ongoing legal trend may drive stricter regulations and more proactive compliance strategies within the industry to protect consumer data more effectively.
Conclusion
The Bleacher Report class action lawsuit and subsequent settlement underscore the complex and evolving nature of digital privacy laws. With a $4.8 million payout and policy revisions, Bleacher Report’s case could serve as a model for future litigation surrounding data privacy violations. For digital platforms, this case emphasizes the importance of transparent, compliant data-sharing practices, especially when user PII is involved.
As digital platforms continue to evolve, consumers and companies alike will need to remain vigilant about privacy standards. For now, the Bleacher Report settlement represents a significant step toward reinforcing consumer rights in the digital age, with broader implications for the media industry’s approach to data privacy.
