Consumer Reports Class Action Says Publisher Sells Customer Data

A reader of Consumer Reports magazine filed a proposed class action lawsuit in New York federal court against the magazine’s publisher alleging the company sold information to list brokers who in turn sold the data to direct mail companies and telemarketers, violating state privacy statutes.

Plaintiff Don Ruppel states that he was never informed that the publisher sells customer data to third parties and never consented to the data sharing and release of his personal information. Ruppel also claims that he was never provided the opportunity to opt out of such data sharing practices.

Consumers Union, the named defendant and publisher of the magazine, is accused of selling personal information of magazine subscribers, which includes customer names, addresses, age, gender, presence of children, income, religion, ethnicity and more. The lawsuit alleges that Consumers Union engages in this practice “to supplement its sales and advertising revenues.”

“These unwarranted offers waste plaintiff Ruppel’s time, money and resources,” the complaint reads.

The lawsuit brings forth claims that Consumers Union violated Michigan’s Preservation of Personal Privacy Act and that the company unjustly enriched itself at the expense of consumers. Ruppel seeks to represent a Class of Michigan residents who had their data shared without consent. He anticipates the number of Class Members to be in the thousands.

Ruppel is seeking damages, including disgorgement or restitution, or $5,000, whichever is greater, for each eligible Class Member under Michigan law.

The plaintiff says that as a result of his information being allegedly sold to so called “data miners,” he “is being inundated with a barrage of junk mail and telephone solicitations.”

Ruppel details in his complaint that NexMark Inc., a data broker that allegedly has access to the 2.8 million subscriber mailing list for Consumer Reports customers, allegedly sells the data of each subscriber for the cost of 11 cents per customer. This practice, Ruppel claims, can be dangerous because those who have the funding to purchase such a list can potentially target “particularly vulnerable members of society.”

“For example, a purchase could buy a list with the names and addresses of all Consumer Reports subscribers who are Spanish speaking, female, over the age of 80, with no children in the household, and with a net worth of greater than $500,000,” Ruppel claims.

Consumer Reports is not the only publication that’s had its publisher hit with a class action lawsuit for allegedly selling data to third parties without consumer awareness or consent. The publisher of Reader’s Digest, Trusted Media Brands Inc., is also the target of a proposed class action lawsuit pending in federal court. The plaintiff in that case alleged that the magazine publisher shared data without consent or permission, potentially putting the information in the hands of scammers.

In February, Meredith Corp., publisher of magazines like Better Homes and Gardens, Shape and Natural Health, reached a settlement in the amount of $7.5 million over similar allegations of privacy violations.

Ruppel is represented by Joseph I. Marchese, Scott A. Bursor, Frederick J. Klorczyk III and Philip L. Fraietta of Bursor & Fisher PA.

The Consumer Reports Data Privacy Class Action Lawsuit is Ruppel v. Consumers Union of United States Inc., Case No. 7:16-cv-02444, in the U.S. District Court for the Southern District of New York.

UPDATE April 12, 2018: Consumer Reports publisher has agreed to a $16.4 million settlement.  Class members include anyone with a Michigan street address who had a subscription to a Consumer Reports publication during the class period.  Top Class Actions will let our viewers know as soon as the settlement website is available.