What's Happening?
DirectToU and Alliance Entertainment have agreed to a $1.57 million class action settlement following allegations that they shared consumer information with third parties without consent, violating the federal
Video Privacy Protection Act (VPPA). The settlement affects consumers who purchased videos or video games or signed up for notifications from DirectToU between August 8, 2022, and September 22, 2025. California residents whose information was shared between August 8, 2020, and September 22, 2025, are also eligible. The companies allegedly used Facebook Pixel technology, which allowed consumer information to be shared with Facebook.
Why It's Important?
This settlement underscores the importance of data privacy and the legal obligations companies have to protect consumer information. The use of Facebook Pixel technology without proper consent highlights the potential risks associated with digital marketing tools. The settlement provides financial compensation to affected consumers, emphasizing the accountability businesses face when failing to adhere to privacy laws. This case may prompt other companies to review their data handling practices to avoid similar legal challenges.
What's Next?
Eligible class members must submit a valid claim form by January 20, 2026, to receive a cash payment, which is estimated to be between $60 and $145. The final approval hearing for the settlement is scheduled for January 28, 2026. This case may lead to increased scrutiny of data privacy practices in the video game and entertainment retail sectors, potentially influencing future regulatory measures.
