Plex says data privacy class action should be arbitrated

Update:

• Plex asked a California federal judge to dismiss a class action lawsuit alleging the streaming service breached its terms of service by refusing to arbitrate claims against it.
• In a Jan. 6 brief filed in a California federal court, Plex says it is willing to move forward with arbitration and accused plaintiff Oliver Tsuya of trying to prevent existing arbitration from proceeding.
• The Plex streaming service lawsuit claims the company collects data on users’ viewing habits without consent and then avoids arbitration obligations. 
• Plex’s terms of service include a broad arbitration clause requiring all disputes to be resolved through Judicial Arbitration and Mediation Services, says Tsuya, who also accused Plex of delaying the arbitration process by declining to pay the required arbitration filing fees.

Plex streaming service class action overview: 

• Who: A Utah resident is suing the Plex streaming service.
• Why: The plaintiff claims the company blocked its users from arbitrating their allegations against it.
• Where: The Plex class action lawsuit was filed in a Califirnia federal court. 

(Dec. 30, 2024)

A Utah resident has hit Plex with a class action lawsuit alleging the streaming service breached its terms of service by refusing to arbitrate allegations against it.

Plaintiff Oliver Tsuya filed the class action complaint against Plex Inc. on Dec. 16 in a California federal court, alleging violations of state and federal consumer laws.

The Plex streaming service lawsuit claims the company collects data on users’ viewing habits without consent, and then avoids arbitration obligations.

Plex’s terms of service include a broad arbitration clause requiring all disputes to be resolved through the Judicial Arbitration and Mediation Services, Tsuya says.

The plaintiff claims he and other users informed Plex in May 2024 of alleged violations of the Video Privacy Protection Act and California Invasion of Privacy Act, triggering a 30-day window for resolution discussions.

In October, the Judicial Arbitration and Mediation Services invoiced Plex for the arbitration filing fees in order to begin the arbitration process, the lawsuit says. However, the company argued it was not required to pay under the services’ arbitration rules.

The Plex class action says the company sought to use the services’ mass arbitration rules, which have lower filing fees. Judicial Arbitration and Mediation Services rejected this interpretation, Tsuya says, asserting that Plex’s terms mandate payment of the fees. Despite this, Plex did not comply.

The lawsuit alleges Plex then simply ignored a billing invoice for $834,000 in arbitration filing fees issued by the Judicial Arbitration and Mediation Services.

Plex blocked users from holding it accountable, lawsuit alleges

Tsuya alleges that Plex’s refusal to pay undermines its arbitration agreement, effectively depriving consumers of a valid dispute resolution process. 

“Instead of fulfilling its contractual duties by accepting JAMS’ decision and paying the filing fees JAMS invoiced, Plex simply refused to pay, making it so the arbitration proceedings cannot move forward,” the lawsuit says. “This situation persists to this day, leaving Plaintiff and the proposed classes without a pathway to advance the arbitrations they are contractually entitled to pursue, and no way to hold Plex accountable for its unlawful conduct.”

As a result, Tsuya is seeking to represent a nationwide class of all users who attempted to arbitrate claims against Plex in the past two years but were blocked due to the company’s refusal to pay fees. 

He is suing for breach of contract and seeking certification of the class action, damages, fees, costs and a jury trial. 

Meanwhile, in 2022, Plex notified its users that it was the victim of a security breach which may have exposed users’ usernames, encrypted passwords, and email addresses.

What do you think of the allegations in this Plex class action? Let us know in the comments.

Tsuya is represented by Raphael Janove and Liana Vitale of Janove PLLC. 

The Plex class action lawsuit is Oliver Tsuya v. Plex Inc. et al., Case No. 5:24-cv-09078 in the U.S. District Court for the Northern District of California. 

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