GameStop agrees to pay cash settlements to customers over Facebook privacy breach
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GameStop Corp. has agreed to a $4.5 million class-action settlement following accusations that it shared personal customer information without consent. The video game retailer has been battling allegations of violating federal privacy laws through the use of tracking technology on its website since 2023. According to the settlement website, customers who made purchases online from GameStop from 2020 to 2025 could be eligible for a small payout or store voucher, as part of the court resolution. After the news of the settlement broke late Tuesday, GameStop shares closed the day’s trading session at $23.74, a downtick of 2.38% from Monday’s close. The equity has shed 22.51% over the past month, although it is still up 1.37% year-on-year Lawsuit blames GameStop for unauthorized data sharing with Facebook According to the court records, the first action against GameStop was filed in 2023. The federal court heard the case brought by plaintiffs Scott Gallie and Alejandro Aldana. They asserted that GameStop had leaked users’ private information to Facebook’s parent firm, Meta Platforms Inc., by use of a tracking feature on its website. Court documents show that the original complaint was submitted to the US District Court for the Southern District of New York. Aldana and Gallie mentioned GameStop’s use of the Facebook Tracking Pixel, a data-collection feature used for marketing analytics. According to the legal filing, this pixel unlawfully shared the identities of online customers and details about their video game purchases to Facebook without the customers’ consent or approval. The plaintiffs also argued that the shared information violated the Video Privacy Protection Act (VPPA). This US law bans the disclosure of personally identifiable information in relation to video content rentals or purchases. GameStop agrees to settlement Per the proposed settlement terms, GameStop will pay a gross settlement amount of $4.5 million. This…
