Crunchyroll Faces New Lawsuit Over Alleged User Data Sharing With Braze

In an era where digital privacy is under increasing scrutiny, major streaming platforms are facing heightened accountability for how they handle user data. Anime giant Crunchyroll, a joint venture between Sony Pictures Entertainment and Japan's Aniplex, is once again at the center of a legal storm. The company is facing a new class-action lawsuit, alleging that it violated the Video Privacy Protection Act (VPPA) by sharing sensitive user information, including viewing history, with a third-party marketing company called Braze. This development casts a shadow over the streaming service, particularly as it follows a significant privacy settlement just last year.

The Latest Allegations: Crunchyroll and Braze

The new lawsuit claims that Crunchyroll has been embedding software from the marketing firm Braze into its application since 2022. This integration, according to the plaintiffs, facilitated the alleged sharing of personally identifiable information (PII) without users' explicit consent. The data purportedly shared includes:

Email addresses: A direct link to a user's identity.
Device IDs: Unique identifiers for the devices users employ to access the service.
Viewing history: Specific anime titles and episode numbers watched, revealing intimate details about user interests and preferences.

These allegations are not minor; the lawsuit claims that this alleged violation affects a staggering 130 million registered users and 17 million paid subscribers. The plaintiffs assert that Crunchyroll knew it was sharing this information with Braze, which then used it to construct comprehensive viewer profiles for targeted marketing purposes. The lawsuit seeks substantial damages, requesting $2,500 per violation. Plaintiffs describe these new accusations as "particularly egregious," arguing that they demonstrate a disturbing "pattern of disregard" for user privacy by the company.

A Pattern of Privacy Concerns: Crunchyroll's Troubled Past

What makes this new lawsuit particularly impactful is that it's not Crunchyroll's first encounter with such allegations. This legal challenge emerges barely a year after the company reached a significant $16 million settlement in 22023 over a similar privacy dispute. That previous lawsuit also accused Crunchyroll of violating the Video Privacy Protection Act, specifically by allegedly sharing subscribers' personally identifiable information with third parties like Facebook (via its Pixel tool), Google Analytics, and Adobe Analytics, all without user consent.

The 2023 settlement made headlines as eligible subscribers could claim a share of the payout. If you were a Crunchyroll subscriber between September 8, 2020, and September 20, 2023, you might have been eligible for approximately $30 from that settlement. While Crunchyroll denied violating any privacy laws in that instance, it agreed to settle the case to "avoid the uncertainties and expenses associated with continuing the case." For more details on the previous settlement and how it impacted users, you can refer to our detailed article: Crunchyroll Settlement: Claim Your $30 Payout For Past Privacy Breaches.

The timing of the initial settlement's approval hearing, scheduled for December 19, 2023, coincided with Crunchyroll's announcement of an expansion into new streaming channels, including Amazon Freevee, LG Channels, The Roku Channel, and Vizio WatchFree+. This juxtaposition highlights the ongoing tension between business expansion and maintaining user trust amidst privacy concerns.

The Video Privacy Protection Act (VPPA): What It Means for You

At the heart of both lawsuits against Crunchyroll lies the Video Privacy Protection Act (VPPA). Enacted in 1988, the VPPA was initially a response to concerns over the unauthorized disclosure of video rental records. Senator Joe Biden introduced the bill after a newspaper published the video rental history of Supreme Court nominee Robert Bork, revealing potentially sensitive personal details.

While originally conceived for physical video stores, the VPPA has been consistently interpreted by courts to apply to modern streaming services. Its core purpose is to protect individuals' privacy regarding their video viewing habits. Why is this so important? Your viewing history can reveal a vast amount of personal information, including:

Political leanings (e.g., watching documentaries on specific political figures).
Religious beliefs (e.g., streaming spiritual content).
Sexual orientation or identity (e.g., watching LGBTQ+ themed films).
Health conditions (e.g., viewing content related to specific illnesses).
Personal interests and hobbies, which can be combined with other data to create highly detailed user profiles.

The VPPA generally prohibits "video tape service providers" from knowingly disclosing personally identifiable information concerning any consumer without their informed, written consent. The current lawsuit alleges that Crunchyroll getting sued is a direct result of failing to secure this necessary consent, especially when sharing data for targeted marketing.

Navigating Digital Privacy: What Users Can Do

In light of repeated allegations against services like Crunchyroll, it's natural for users to feel concerned about their digital privacy. While legal battles unfold, there are steps you can take to better protect your own data across all online platforms:

Review Privacy Policies (Carefully): While often lengthy and complex, privacy policies detail how a company collects, uses, and shares your data. Look for sections on third-party sharing and data retention.
Adjust In-App Privacy Settings: Many streaming services, social media platforms, and apps offer granular privacy controls within your account settings. Take the time to explore and restrict data sharing options where available.
Be Mindful of Permissions: When downloading new apps or signing up for services, pay attention to the permissions requested. Do they truly need access to your contacts, location, or other sensitive data?
Use Privacy-Enhancing Tools: Consider browser extensions that block trackers, virtual private networks (VPNs) to encrypt your internet traffic, and strong, unique passwords for every service.
Understand the Value of Your Data: Recognize that your data is a valuable commodity. Companies use it to target ads, personalize experiences, and even predict behavior. Questioning consent mechanisms and data practices is crucial.

The ongoing lawsuits serve as a stark reminder that even seemingly innocuous viewing habits can become part of a larger data profile. For a deeper dive into the broader implications and how to assess the safety of your viewing history, check out our related article: Crunchyroll's Repeat Privacy Allegations: Is Your Viewing History Safe?

The Broader Implications for Streaming Services

The legal challenges faced by Crunchyroll are not isolated incidents; they reflect a growing tension between companies' desire for data-driven personalization and consumers' demand for privacy. As streaming services become integral to daily entertainment, the data they collect offers immense value for advertisers and marketers. However, this value must be balanced against legal obligations and ethical responsibilities to protect user information.

This lawsuit against Crunchyroll highlights several critical issues for the entire streaming industry:

The Evolving Definition of "Consent": What constitutes true, informed consent for data sharing in a digital world? Courts are increasingly scrutinizing opt-out mechanisms versus explicit opt-in requirements.
Third-Party Integrations: The widespread use of marketing and analytics tools raises questions about the due diligence companies perform to ensure their partners comply with privacy laws.
Consumer Trust: Repeated privacy violations can erode user trust, potentially leading to subscriber churn and reputational damage, even for popular services like Crunchyroll.
Regulatory Pressure: These lawsuits could prompt regulators to implement even stricter data privacy laws, similar to GDPR in Europe or CCPA in California, demanding greater transparency and control for consumers nationwide.

The outcome of this lawsuit could set important precedents for how streaming services operate, particularly concerning their relationships with third-party marketing and analytics providers.

The new class-action lawsuit alleging that Crunchyroll getting sued for sharing user data with Braze is a significant development, underscoring the ongoing battle for digital privacy. Coming on the heels of a substantial 2023 settlement for similar VPPA violations, these new allegations paint a picture of a company struggling to meet its privacy obligations. As the legal proceedings unfold, the focus will remain on user consent, the scope of data sharing, and the potential impact on millions of anime fans. For consumers, these events serve as a crucial reminder to be vigilant about their online data and to actively manage their privacy settings across all digital platforms.