comScore Panelists Seek Approval Of Privacy Settlement

Measurement company comScore will pay an estimated 16,000 panelists between $500 and $700 to settle a class-action lawsuit alleging that the company violated panelists' privacy by collecting too much information about them.

The payout details were revealed on Wednesday, in a motion asking U.S. District Court Judge James Holderman in the Northern District of Illinois to grant final approval to the $14 million settlement. The deal also requires comScore to revise its disclosures to panelists and implement procedures to make sure its “bundling partners” -- companies that distribute comScore's software along with free screensavers, games or other programs -- also disclose the company's terms.

The plaintiffs' lawyers say in court papers that the deal should be approved, due  to the “exceptional results achieved” and the “overwhelmingly positive response” from panelists. They add that 9,600 panelists have so far submitted claims, and that an additional 6,300 are expected to do so. To date, only one panelist has opted out of the settlement, according to class counsel.

“Plaintiffs view the $14 million non-reversionary settlement fund ... as well as the prospective relief offered by the settlement, to be an extraordinary result for the class, especially when compared to other privacy class action settlements,” lawyers for the consumers argue. They specifically note that privacy class-actions against other companies -- including Facebook, Google and Netflix -- were resolved without payment to the Web users affected by the alleged violations.

If approved by Holderman, the deal will put an end to a lawsuit brought against comScore by panel members Jeff Dunstan and Mike Harris in 2011. They alleged that they installed comScore's software after downloading a free product, but didn't realize that the company would collect a “terrifying” amount of data -- including usernames and passwords, search queries, credit card numbers and retail transactions.

The latest motion notes that settlement talks grew more serious last August, shortly after Holderman said the consumers could proceed as a class, instead of as individuals. comScore, which opposed class-action status, unsuccessfully attempted to appeal that ruling to the 7th Circuit Court of Appeals.

That effort was backed by a coalition of trade groups, including the Direct Marketing Association, Interactive Advertising Bureau, Association of National Advertisers, American Association of Advertising Agencies and the U.S. Chamber of Commerce. The trade groups argued that privacy lawsuits against Web companies could hinder online commerce. “This case and others like it implicate foundational internet communication and commerce technology,” they said at the time.

Holderman could decide as early as Oct.1 whether to grant the deal final approval.

1 comment about "comScore Panelists Seek Approval Of Privacy Settlement".
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  1. Nicholas Schiavone from Nicholas P. Schiavone, LLC, September 18, 2014 at 7:09 p.m.

    This is one of the most important Marketing & Media Research, as well as "Digital', news stories of the year, decade, and perhaps the century to date. Where is the 'New York Times,' 'Washington Post' or 'USA Today?' (Not to mention broadcast outlets like 'NBC Slightly News' (sic) tonight. Thank you, MediaPost, for understanding what is -- or ought to be -- important to America and your readers, who consider themselves media, marketing and advertising professionals. Your sensitivity to the issue of Privacy is outstanding. In closing, the quality of this reporting makes this commentator fearful of the privacy breaches or litigation we know nothing about. It matters not whether you call it research or consumer data collection. Too much of a good thing is still too much -- and quite possibly unethical and illegal. Congratulations, MediaPost on a job well done. Sincerely, Nicholas P. Schiavone

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