The DirectToU & Alliance Entertainment VPPA Settlement resolves a class action lawsuit alleging violations of the Video Privacy Protection Act (VPPA), a federal privacy law that protects consumers against unauthorized disclosure of personally identifiable information (PII) linked to video viewing or video purchase behavior. The lawsuit claims that DirectToU LLC, Alliance Entertainment, and related entities used tracking tools such as the Facebook Pixel and similar technologies to share information about which videos, DVDs, Blu-rays, 4K titles, and video games customers viewed or purchased on their sites with third parties without proper consent, thereby violating the VPPA. DirectToU operates many video and game retail brands and marketplace storefronts across platforms, and Alliance Entertainment is a major distributor of entertainment products. Defendants deny wrongdoing but agreed to settle to avoid prolonged litigation costs and uncertainty. ([turn0search5][turn1search0])
The settlement establishes a $1,577,000 settlement fund to provide cash compensation to eligible class members after deducting court-approved attorneys’ fees, notice and administration costs, and a service award to the class representatives. Eligible individuals will receive a pro-rata share of the net settlement fund — meaning all approved claimants divide the remaining money equally. Payments may be issued as checks, digital options (Prepaid Mastercard, PayPal, Venmo, Zelle), or similar methods chosen on the claim form. Estimated individual payouts are currently around $60 to $145 based on projected claim volume and net fund size, though actual amounts will be determined after all valid claims are counted.