GameStop Corp. (NYSE:GME) has agreed to pay $4.5 million to its customers following allegations of privacy law violations. The gaming retailer was accused of sharing personal customer information with Facebook without consent.
What Happened: GameStop Corp is gearing up to distribute millions to its customers to settle a class action lawsuit. The lawsuit accused the company of violating the federal Video Privacy Protection Act (VPPA) by allegedly sharing sensitive customer data with Facebook.
The gaming retailer is specifically accused of implementing a Facebook tracking pixel on its website. This pixel allegedly sent customer’s personal information, including details of video game purchases, to Facebook without their knowledge or consent.
The settlement, which totals $4.5 million, applies to individuals who purchased a game from GameStop’s online store between August 18th, 2020, and April 17th, 2025.
To qualify for the settlement, customers must have been Facebook members and maintained a public Facebook profile using their real name at the time of purchase.
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While the exact number of affected customers is not yet known, the settlement suggests that hundreds of thousands of customers may be eligible for compensation. Affected customers are set to receive up to $5 cash or a $10 voucher.
Despite agreeing to the settlement, GameStop has not admitted to any wrongdoing. The company has, however, committed to permanently removing the tracking pixel to prevent future unauthorized data sharing.
Why It Matters: This settlement highlights the increasing scrutiny on companies to ensure they adhere to privacy laws and respect customer data.
As consumers become more aware of their digital rights, companies like GameStop are being held accountable for their data practices.
This case serves as a reminder for businesses to review their data sharing practices and ensure they are in line with legal requirements.
Image: Shutterstock/Jillian Cain Photography
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