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Earlier this year, discussions surrounding class action lawsuits against prominent online education platforms such as Udemy, 2U/edX, and Coursera made headlines. These legal challenges primarily allege violations of the Video Privacy Protection Act (VPPA), contending that these companies shared users’ video viewing habits and personal information with third parties, notably Meta, through tracking tools like the Meta Pixel.
According to ClassAction.org, there are approximately 60 lawsuits across various sectors, including healthcare, retail, media, and education. These cases accuse companies of unauthorized disclosure of sensitive user information via the Meta Pixel.
Recently, both Udemy and Coursera published their quarterly financial reports (10-Qs), which offer updates regarding these ongoing legal issues.
Coursera’s Update
In its most recent filing, Coursera announced a principal agreement to settle a class action lawsuit initiated in November 2023, concerning alleged infractions of the VPPA through unauthorized sharing of users’ video viewing history. Although the precise settlement amount was not disclosed, the company has designated approximately $8.12 million to address these legal challenges.
Moreover, Coursera’s filing indicated that legal representatives of around 30,000 claimants have either threatened or filed individual arbitration claims based on similar allegations. In October 2024, Coursera reached settlements with roughly 7,300 individuals and continues to negotiate settlements with many others.
The claimants appear to be organized through ClassAction.org. Coursera’s presence on the site emphasizes that while claims can be submitted, there are no assurances of successful outcomes or the extent of any potential compensation. The VPPA enables plaintiffs to seek damages of $2,500 for each infringement.
While Coursera disputes the claims against them and plans to mount a robust defense, the company noted the presence of insurance policies that could potentially cover some claims, though coverage is not guaranteed.
Udemy’s Update
Udemy finds itself in a comparable legal scenario. In December 2022, allegations surfaced against the platform under the VPPA, leading to a class action complaint. This case has since been directed to individual arbitration as of March 2024.
Furthermore, several law firms are preparing to file individual arbitration demands for about 20,000 Udemy users, echoing similar accusations. To date, Udemy has managed to settle with around 6,000 users for a nominal amount and is gearing up to defend itself against the remaining claims.
Source
www.classcentral.com