Class Action Alleges Crunchbase Exploited Illinois Residents’ Personal Data Without Consent

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A proposed class action lawsuit claims Crunchbase has unlawfully used Illinois residents’ personal information to market monthly subscription plans to its online business search platform without consent.

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The 11-page lawsuit says that despite failing to obtain written consent from individuals listed on its online directory, Crunchbase has allowed users to view the consumers’ identifying information as part of a seven-day free trial in an effort to lure visitors to pay for a subscription. According to the suit, the company has violated the Illinois Right of Publicity Act, which prohibits the use of a consumer’s identity for commercial purposes—such as advertising subscriptions—without written consent.

Crunchbase offers users partial access to its platform for free, allowing them to search, filter and view limited profiles of businesses and individuals, the case explains. To reveal more search results or view full profiles—which can include identifying data such as a person’s name, photograph, contact information, job title, employment history and education details—a user must sign up for a seven-day free trial, which converts to a paid subscription unless cancelled, the complaint describes. Per the filing, a user can pay for the “Starter” Crunchbase plan at $29 per month or for the “Pro” plan for $49 per month, both billed annually.

The lawsuit charges that the millions of profiles Crunchbase has created and listed on its platform certainly provide enough data to identify a person.

“In fact,” the suit relays, “Crunchbase states that its data is enriched, cleansed, verified, and updated daily to ensure customers have the latest information.”

The plaintiff, an Illinois resident with no prior relationship with Crunchbase, learned in April of this year that his identity was being used on the platform to advertise monthly subscriptions, the case says. The man claims that he never provided consent for the company to use his information in any capacity, let alone to profit from it.

The lawsuit looks to represent any current or former Illinois residents who are not subscribed to Crunchbase’s online platform and whose identities are used to advertise monthly subscriptions.

A similar case was filed in Ohio just days after the suit detailed on this page, which also alleges that Crunchbase has violated the state’s publicity statute. The 16-page Ohio case looks to cover any current or former Ohio residents who are not subscribed to Crunchbase’s online platform and whose identities are used to market paid subscriptions.

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