Class Action Lawsuits on Online Course Platforms

Class action lawsuits are currently pending against the online course platforms Udemy, edX, and Coursera for their use ofFacebook/Meta’s Meta Pixel tracking tool. These lawsuits allege violations of the Video Privacy Protection Act (VPPA), a federal law enacted in 1988 to protect consumers’ video rental records.

Understanding Meta Pixel and its Implications

Meta Pixel is a piece of code embedded in websites to track user behaviour, optimise advertising, and share data with Meta. Various online platforms, including those offering video content, widely use the tool. This data collection practice has led to numerous class action lawsuits, including those targeting major online course providers.

Video Privacy Protection Act (VPPA)

The VPPA prohibits videotape service providers from disclosing personally identifiable information about consumers’ viewing habits without written consent. Plaintiffs argue that the law’s provisions, initially intended for video rental records, also apply to modern video content platforms that use tracking technologies like Meta Pixel.

Moving markets

Key Class Action Lawsuits

  1. Udemy (December 2022):
    • Allegations: Disclosed users’ video viewing history and personal information to third parties, such as Facebook, without proper consent.
    • Current Status: Udemy has stated its intention to vigorously defend against these claims and has filedmotions to dismiss or compel arbitration.
  2. edX/2U (October 2023):
    • Allegations: Similar to those against Udemy, involving unauthorised sharing of users’ viewing data through Meta Pixel.
    • Current Status: edX/2U is also defending itself against these allegations, filing appropriate legal motions.
  3. Coursera (November 2023):
    • Allegations: The company is accused of sharing users’ video viewing history with third parties without consent, violating the VPPA.
    • Current Status: Coursera is defending against the claims and has filed motions to dismiss the complaints.

Broader Impact on Video Platforms

The lawsuits against Udemy, edX, and Coursera are part of a more significant trend affecting many video content platforms. In October 2022, Bloomberg Law reported the filing of over 50 such class action lawsuits. A notable case involved the Boston Globe, which settled for $5 million over similar allegations of VPPA violations through Meta Pixel usage.

Legal and Industry Repercussions

The outcome of these lawsuits could significantly impact the online course industry and other video content providers. Key considerations include:

  • Legal Definitions: Determining whether online platforms qualify as “video tape service providers” under the VPPA.
  • Consent Mechanisms: Establishing more transparent and more stringent consent mechanisms for data sharing.
  • Data Privacy Policies: Reevaluating data privacy policies and practices to ensure compliance with evolving legal standards.

The Future of Online Course Providers

As these lawsuits progress, online course providers may need to adopt more transparent and robust privacy practices to avoid similar legal challenges. This could involve:

  • Enhanced User Consent: Implementing explicit consent forms for data tracking and sharing.
  • Improved Data Security: Strengthening data security measures to protect user information.
  • Regulatory Compliance: Staying updated with legal requirements and adjusting business practices accordingly.

The class action lawsuits against Udemy, edX, and Coursera highlight the complexities and risks associated with using tracking technologies like Meta Pixel. As the legal landscape evolves, online course providers must prioritise user privacy and compliance to mitigate potential legal and reputational damages.

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