Venmo class action lawsuit overview:
- Who: A group of consumers are suing Paypal Inc., doing business as Venmo.
- Why: The plaintiffs allege Venmo shared private user data with third parties without consent.
- Where: The Venmo class action lawsuit was filed in California federal court.
A new class action lawsuit alleges Paypal, doing business as Venmo, shared private user data with third parties without consent.
Plaintiff Stacey Borquez and three others filed the class action complaint against PayPal on Sept. 1 in California federal court, alleging violations of federal and state privacy laws.
Venmo is a peer-to-peer payment platform owned and operated by PayPal. The platform generates a record for each transaction that includes the identity of the sender and recipient, the amount paid and a text note describing the transaction’s purpose.
The plaintiffs allege that PayPal promised users that this information would remain private, with Venmo’s privacy statement explicitly stating that the platform does not disclose personal information to third parties for promotional or marketing purposes.
However, the plaintiffs claim that Venmo embedded third-party tracking technologies into its platform, allowing companies like mParticle and Kochava to intercept and record users’ private financial transaction data.
According to the Venmo class action lawsuit, this data includes the sender’s full name, email address, phone number, advertising ID, the recipient’s identity, the amount paid and the note describing the transaction’s purpose.
Privacy lawsuit alleges Paypal’s actions deliberate
The plaintiffs argue that PayPal’s actions were not accidental but rather a deliberate choice to install tracking technology and transmit specific data fields. They allege that the disclosed information was neither anonymous nor aggregated, as it included directly identifying information and persistent identifiers.
They further allege that PayPal’s actions violate the Gramm-Leach-Bliley Act, which governs the privacy of financial information.
The class action lawsuit claims that Venmo’s privacy statement and marketing materials misled users into believing their data would be secure.
The plaintiffs seek to represent a nationwide class of all persons in the United States who used the Venmo platform, had their privacy settings set to private or enabled at least one private transaction, and whose personally identifiable information was disclosed to or intercepted by third parties.
The Venmo class action lawsuit contends that PayPal’s actions constitute an invasion of privacy, negligence and unjust enrichment.
The plaintiffs are suing for violations of the Electronic Communications Privacy Act, the California Invasion of Privacy Act, the California Comprehensive Computer Data Access and Fraud Act, the California Constitution’s right to privacy and California’s Unfair Competition Law.
The plaintiffs seek certification of the Paypal class action lawsuit, damages, fees, costs and a jury trial.
Under similar allegations, a consumer has accused Pfizer of secretly tracking users’ activity on its website and sharing their information with third-parties despite promising users they could opt out of tracking technologies.
What do you think of the allegations made in this Venmo class action lawsuit? Let us know in the comments.
The plaintiffs are represented by Amber L. Schubert and Sonum Dixit of Aylstock Witkin Kreis & Overholtz PLC and Christian Levis, Patricia Zapata Latzer and Anthony M. Christina of Lowey Dannenberg P.C.
The Venmo class action lawsuit is Borquez, et al. v. PayPal Inc., Case No. 5:26-cv-9340, in the U.S. District Court for the Northern District of California.
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