Pandora Sued for Allegedly Sharing User Data Without Consent

A class action lawsuit was recently filed against Internet radio service Pandora for alleged violations of Michigan’s Video Rental Privacy Act. The complaint alleges that although Pandora said users’ profile pages would be accessible only to other registered Pandora users who knew an individual’s “unique-mail address,” Pandora made these records publicly available. The plaintiffs further allege that Pandora integrated users’ profile pages with their Facebook accounts without first obtaining consent from the users. The plaintiffs allege that these activities violate Michigan’s Video Rental Privacy Act, which prohibits the disclosure of information regarding both of customers’ video rental/borrowing history and customers’ sound-recordings rental/borrowing history. The plaintiffs are seeking $5,000 in damages per class member.

TIP: Companies that engage in sharing and tracking of customer information should use caution. Many lawsuits are being filed under a variety of theories. One way to help limit potential exposure is to work with counsel to ensure that proposed information can be shared or tracked. Companies should also review public statements–both privacy policies and advertising copy–to ensure the statements accurately reflect current activities.