Digital Subscriber Dismissal: Federal Court on Video Privacy Protection Act’s Definition of “Consumer”

In a case closely watched by legal professionals and corporations with online subscription services, a U.S. Federal Court recently dismissed a claim by a newsletter subscriber under the Video Privacy Protection Act (“VPPA”). The court reasoned that, despite holding a digital subscription to an online newsletter, the plaintiff was not a “consumer” within the definition of the VPPA, thereby undermining the claim’s validity. The judgement, released by the Davis Wright Tremaine LLP, offers valuable insight into the interpretation and application of the VPPA in the era of digital subscription services.

The plaintiff alleged that their personal information was unlawfully disclosed in violation of the VPPA after accessing audio-visual content online. The VPPA, enacted in 1988, was originally intended to prevent video tape service providers from disclosing consumers’ personally identifiable information to third parties without their consent. However, how it applies to modern digital services, and in particular newsletter subscriptions, remained debated.

The dismissal of the claim hinged on the court’s interpretation of the term “consumer”. As affirmed by the court, even though a digital subscriber may have standing to sue under VPPA, if the newsletter subscription contains no audio-visual content, that digital subscriber cannot be construed as a “consumer” as defined under the VPPA. Therefore, the subscriber can not plausibly allege the elements of a VPPA claim when viewing digital audio-visual content online.

The court’s decision unpacks crucial aspects of privacy law and presents key modes to approach and understand its application in today’s digital world. Given the increasing prevalence of digital subscriptions and online content consumption, such interpretations of existing laws signal for both businesses and consumers to realistically assess their rights and liabilities in this continually evolving landscape.