DraftKings Faces Class Action Lawsuit Over Alleged Privacy Violations

Allegations of Data Sharing

The lawsuit, filed on December 13 in the U.S. District Court for the Southern District of New York by Jeffrey Wan, a New York resident, accuses DraftKings of unlawfully sharing user data with Facebook and other tech companies without proper consent.

According to the lawsuit, DraftKings implemented Facebook’s Business Tools, including Facebook Pixel and Conversions API, to monitor and transmit user activity on its platform. This data allegedly included detailed information about videos and games accessed by users, along with their unique Facebook user identifiers.

The lawsuit claims that DraftKings automatically shared this information whenever users watched pre-recorded videos or played games on its website or mobile apps, violating VPPA’s strict requirements for obtaining informed, written consent before collecting or sharing such data.

Motive Behind the Alleged Actions

The filing asserts that DraftKings was not obligated to use these tracking tools to operate its platform. Instead, the company allegedly leveraged the technology to gain advertising and analytics advantages, enhancing its ability to target users and measure the effectiveness of marketing campaigns.

The lawsuit further contends that these practices were conducted without users’ knowledge or permission, constituting a clear breach of their privacy rights under VPPA.

Potential Class Action Impact

Jeffrey Wan’s lawsuit seeks to represent millions of DraftKings users nationwide who have accessed the platform’s pre-recorded videos or games. The plaintiff is pursuing statutory damages of $2,500 per violation, along with legal fees and possible additional compensation for affected users.

If the court grants class-action status, DraftKings could face significant financial liabilities and potential damage to its reputation in the competitive online gaming industry.