Facebook Illegally Captures Paramount+, ESPN+, Hulu Subscribers’ Data for Targeted Ads, Class Action Lawsuit Alleges

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A proposed class action lawsuit alleges Meta Platforms has illegally and without consent intercepted the sensitive and confidential communications of Paramount+, ESPN+, Hulu and Starz subscribers with Facebook accounts while intentionally “obfuscating” how much and what kind of data it captures.

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The 50-page Facebook lawsuit accuses the embattled social media platform of using its business advertising and metrics tools, facilitated primarily by the Facebook tracking pixel, to intentionally and secretly intercept sensitive, confidential user communications. In particular, Facebook can use its tracking pixel to match a streaming subscriber to their individual Facebook profile each time they access a website containing the pixel, such as those of Paramount+, ESPN+, Hulu and Starz, the filing says.

Related Reading: ESPN+ Video Privacy Investigation

Per the lawsuit, the streaming services at issue are among the largest in the country and spend millions annually on targeted advertisements facilitated by Facebook. The suit charges that, given the scale and persistence of the data it collects from the streamers, Facebook knows the services disclose their users’ personally identifiable information, even though the streaming services have no lawful right to do so.

“Users never choose to provide this sensitive information to Facebook because, among other reasons, they never know whether a particular website uses its Business Tools, and, if so, what data those tools collect,” the case provides.

Related Reading: Hulu Facebook Data Sharing Investigation

The complaint contests that “not much has changed” in the 12 years after Facebook settled for $9.5 million a major 2008 privacy class action over its alleged interception of users’ video-viewing data from the websites of Blockbuster, Fandango and Gamefly, among others, in violation of the federal Video Privacy Protection Act (VPPA). That settlement was followed in November 2012 by a consent decree with the Federal Trade Commission (FTC) that included more settlement terms, which Facebook would violate seven years later and incur an unprecedented $5 billion penalty, the suit says.

Related Reading: Video Privacy Facebook Investigation

Today, Facebook’s advertisers “still violate the VPPA,” the proposed class action charges, alleging Facebook “still facilitates those violations by intentionally wiretapping electronic communications from users and non-users alike,” albeit in an allegedly less transparent manner.

“Then and today, Facebook never receives consent for these interceptions, instead promising users it safeguards their privacy and requires advertisers to disclose data in compliance with federal and state law.”

According to the privacy lawsuit, Paramount+, ESPN+, Hulu and Starz “coordinate” with Facebook to target their advertisements via the platform’s business tools, with a team of employees at Facebook working closely with the streaming platforms to run more effective targeted ad campaigns.

Related Reading: Video Game Legal Investigations

For big spenders such as the streaming services, Facebook also provides significant strategic support for advertisements so as to maximize returns from the platform’s business tools, the suit shares.

According to the complaint, Facebook captures subscribers’ information whether or not they are logged into a Facebook account, or have ever registered for an account.

“Facebook knows that it intercepted sensitive and unlawfully disclosed information that the Streaming Services had no legal right to transmit. This conclusion is inescapable given Facebook’s own history with the VPPA, its partnership with the Streaming Services, and the amount of money the Streaming Services spend on advertisements.”

The new Facebook privacy lawsuit looks to cover all individuals with Facebook accounts who subscribe to Paramount+, ESPN+, Hulu and/or Starz.

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