Crunchyroll sued for sharing users’ private information – must now pay $16 million to its subscriber base

Crunchyroll sued for sharing users' private information - must now pay $16 million to its subscriber base

Crunchyroll, one of the most popular anime streaming channels in the North American subcontinent with over 120 million users worldwide, is up the headlines again, but not for a good reason. Despite growing popularity among its global fans day by day, the legal troubles are getting bigger each day for this company, though this particular settlement is relevant to the case filed against this anime streaming giant in September 2022. In this article we will go into the details of the suit and settlement. 

Why was the Crunchyroll sued?

Crunchyroll Logo
(Image via Crunchyroll)

The lawsuit against Crunchyroll was filed by Salvador Beltran Jr., and Eli Gross, individually and on behalf of its subscribers, who alleged that the platform had collected and shared their personal data, including viewing habits and preferences, with third-party companies including Facebook Google Analytics, and Adobe Analytics, without their consent. This action raised concerns about violation of the Video Privacy Protection Act, 18 U.S.C. and how user information was being handled by the Crunchyroll.

Crunchyroll, however, has denied any wrongdoing, stating that it chose to settle to avoid the uncertainties and expenses associated with the ongoing legal battle.

This case was originally filed on September 8, 2022, in the United States District Court for the Northern District of Illinois, however after a prolonged legal proceedings, the suit reached to a conclusion with the settlement of USD 16 million by the Crunchyroll to its users.

The Class Action Settlement

Crunchyroll sued for sharing users' private information - must now pay $16 million to its subscriber
(Image via Crunchyroll)

To resolve this legal matter, the anime streaming website, has agreed to a class action settlement amounting to $16 million. Although it is not yet clear about whose private information was leaked, as per the sources the users who subscribed to the streaming services of Crunchyroll in between 8th September 2020 to 20th September 2023 have probably got their privacy compromised and are eligible for the claim. 

While the final per-person payout is yet to be determined, each eligible claimant is expected to receive around $30, making it an opportunity worth exploring for all those who are eligible to receive the claim. (How to know if you are eligible?)This settlement is intended to compensate affected subscribers and cover legal fees. While this may provide some relief to the affected users, it also serves as a stern reminder to companies that mishandling user data can lead to substantial financial repercussions.

Also explore: Crunchyroll scandal simplified: what’s this settlement about and should you make a claim?

Crunchyroll’s background and recent developments

Anime characters from the shows available on Crunchyroll
(Image via Crunchyroll)

Crunchyroll, a California-based streaming service, is a joint venture between Sony Pictures Entertainment and Japan’s Aniplex. The platform is known for hosting popular shows like Jujutsu Kaisen, One Piece, and Demon Slayer: Kimetsu no Yaiba.

Interestingly, news of the settlement coincided with the announcement of the Crunchyroll channel, a new 24/7 streaming anime channel in collaboration with GSN. It will be accessible through various platforms, including Amazon Freevee, LG Channels on LG Smart TVs, The Roku Channel, and Vizio WatchFree+.

Conclusion

In conclusion, Crunchyroll’s class action settlement is a significant development for the streaming companies to follow the data privacy laws and protect user rights more strictly. The settlement of 16 million may sound like a huge claim, there are multiple ways by which users can make a claim. So should you make the claim, if yes then how? Is the big question. 

If you loved this article, then you must love the official newsletter of Spielanime as well. Subscribe to receive the personalised newsletter made by the editor in chief to become part of the Spiel-family.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top