The news: Sports-centric streaming service Fubo has agreed to pay $3.4 million to settle a lawsuit claiming it illegally distributed customers’ personal data to advertisers without consent.

• The lawsuit alleged that Fubo went against the Video Privacy Protection Act (VPPA) in 2023 by collecting personally identifiable information (PII), including data on consumers’ viewing history and location, and sharing this information with third party advertisers.
• The findings go against Fubo’s 2023 privacy policy, which stated that it would only share non-PII with third parties unless the platform obtained user consent.
• Those who used Fubo before May 29—the date of the platform’s most recent policy update—are eligible to receive part of the settlement amount, with “statutory damages of $2,500 for each violation of the VPPA.”
• Despite settling, Fubo has denied the allegations.

The privacy problem: Fubo is far from the first platform to face allegations of misusing consumer data.

Companies like Google have faced data violation lawsuits over claims of unlawful data harvesting, deceptive data tracking practices, and breaches of children’s privacy regulations through monitoring YouTube viewing habits. Social media giant Meta has seen similar issues, with complaints against its targeted advertising practices causing legal strife.

Consumer concerns: As more platforms face scrutiny over their data practices, consumers remain concerned—and confused—about harvesting and distribution of PII.

Only 53% of consumers feel like they have a good understanding of how companies are collecting and using their data—and 73% feel that they don’t have enough control over how companies use personal information.

Our take: Fubo’s lawsuit echoes growing concerns over how platforms approach data privacy and questions over the legality of using sensitive information to serve personalized ads—requiring that advertisers shift their strategies.