Consumer Reports Publisher Settles Data Selling Class Action for $16M

Consumer Reports publisher Consumers Union of United States Inc. has agreed to pay nearly $16.4 million to settle a class action lawsuit accusing it of violating Michigan law by selling subscribers’ data.

On Monday, a Class of Consumer Reports subscribers asked a New York federal judge to preliminarily approve the proposed subscription privacy class action settlement.

If approved, this Consumer Reports class action settlement would be nearly double the size of the next-largest deal struck over alleged violations of Michigan’s privacy law. The $8.2 million class action settlement was reached in June 2017 by Reader’s Digest and its subscribers.

The Consumer Reports class action lawsuit was initially filed on April 1, 2016 and accused the magazine of disclosing subscribers’ personal information, such as their name, address and name of the magazine, to third parties.

Plaintiff Don Ruppel says this disclosure was made without the subscribers’ permission and constitutes a violation of Michigan’s Preservation of Personal Privacy Act. He claims he was never informed that the publisher sells subscriber data to third parties.

According to the Consumer Reports class action lawsuit, he never consented to the release of his personal information and he was never given the opportunity to opt out of such data sharing practices.

Ruppel says that his information was sold to so-called “data miners,” and as a result, he “is being inundated with a barrage of junk mail and telephone solicitations,” according to the Consumer Reports subscriber privacy class action lawsuit.

Consumers Union attempted to have the subscriber privacy class action lawsuit dismissed, but its attempts at dismissal were unsuccessful.

Consumers Union denies any wrongdoing but agreed to settle the Consumer Reports class action lawsuit to avoid the uncertainty and risk of ongoing litigation.

The proposed Class includes anyone with a Michigan street address who had a subscription to a Consumer Reports publication between April 1, 2010 and Oct. 31, 2016.

Class Members who file timely and valid Claim Forms will be entitled to a pro rata share of the settlement fund that remains after administration expenses, awards and other costs are deducted. It is estimated that each claimant will receive a payment of about $180, though the actual amount will depend on the total number of approved claims.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

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

The Consumer Reports Subscriber Data Selling Class Action Lawsuit is Don 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.