Oracle to pay $115M in data privacy settlement

Update: 

• Following eight months of negotiations, Oracle America agreed to pay $115 million to end claims the company illegally sold users’ personal information. 
• In a motion for preliminary approval, consumers say the deal is fair, reasonable and adequate. 
• Per the settlement, Oracle cannot capture certain “complained-of electronic communications” and needs to create an audit program to review its customers’ compliance with contractual consumer privacy obligations.
• A pair of consumers claimed Oracle violated federal privacy and wiretap laws by illegally gathering and selling the personal information of its users.
• The federal judge overseeing the case previously dismissed three of the claims against Oracle and trimmed a fourth last year but otherwise found the consumers had standing to bring the complaint. 

Oracle class action overview:

• Who: Three plaintiffs filed a class action lawsuit against Oracle.
• Why: They allege Oracle illegally sells users’ personal information.
• Where: The Oracle class action lawsuit was filed in California federal court.

(Aug. 26, 2022)

Oracle America Inc. was hit with a class action lawsuit alleging it sells users’ personal information to third parties without their consent in violation of privacy and federal wiretap laws.

Three privacy rights advocates filed the class action, alleging the massive data broker compiled digital “dossiers” on millions of internet users around the world and reaped more than $42 billion in revenue by selling their personal information.

Oracle class action says data can be used to identify individuals

Oracle allegedly utilizes cookies, cross-device tracking, device identification, JavaScript and tracking pixels to track and collect users’ personal data, according to the lawsuit.

The company also uses AddThis, software that allows users to bookmark or share links to social media, and Datalogix, an information broker that profiles shoppers by aggregating data from companies’ loyalty programs, the Oracle class action alleges.

The information allegedly collected and sold by Oracle includes addresses, political views, race, retail purchases and locations. Oracle reportedly developed the “Oracle ID Graph” using vast troves of user data that can be used to identify individual internet users, which is available for sale to private and governmental entities, the lawsuit states.

“This process provides Oracle with a virtual panopticon: Oracle purports to have vision on virtually everything ascertainable in electronic form about Class members, from where they live, to the media they consume, to the things they buy, to the views they hold,” the Oracle class action lawsuit alleges.

The plaintiffs allege Oracle collects this highly personal information on internet users without their knowledge or consent. Although Oracle has created privacy policies, they do not adequately inform internet users about how it collects and uses their personal information, the Oracle class action lawsuit says.

The plaintiffs seek to certify a worldwide class of internet users whose data was used to create digital profiles through the data marketplace or Oracle ID Graph and sold to third parties. The plaintiffs also seek to certify subclasses of United States and California internet users.

Last year, an Oracle pay bias class action lawsuit survived the company’s dismissal bid, allowing claims on behalf of 3,000 allegedly underpaid female employees to proceed. The case is currently on hold while the disbanded class appeals. 

What do you think about the class action lawsuit? Tell us your thoughts in the comments!

The plaintiffs are represented by Michael W. Sobol, David T Rudolph and Jallé H. Dafa of Lieff Cabraser Heimann & Bernstein LLP.

The Oracle class action lawsuit is Michael Katz-Lacabe, et al. v. Oracle America Inc., Case No. 3:22-cv-04792, in the U.S. District Court for the Northern District of California, San Francisco Division. 

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