On Friday, a federal judge in Michigan granted preliminary approval of a settlement in the amount of $7.5 million that would resolve allegations that the magazine publisher Meredith Corp. violated Michigan’s Video Rental Privacy Act (VRPA).
Under the terms of the settlement, the magazine publisher will financially compensate eligible Class Members who set up a claim through the approved settlement administrator. Additionally, Meredith will be prohibited from disclosing any personal data regarding its magazine subscribers to third parties for the next four years, unless they obtain prior express written consent.
While Meredith will be unable to share its data with data miners or advertisers, the company may share subscriber information with the intent to use the information to bill, collect payment for, deliver, produce, renew, manage, market or fulfill orders. The information can also be shared in the event of a sale, merger or licensing agreement, but may not be shared otherwise.
Lead plaintiff Deborah Kinder initially filed the proposed class action lawsuit against Meredith in March 2014, alleging that the company inappropriately disclosed personal reading information to third parties, including direct mail advertisers and data miners, without consumer consent. The information included magazine choices, addresses, and other information about customers’ income and household composition.
Under VRPA, businesses involved in the retail sales, renting or lending of books or other written materials, sound and video recordings are barred from disclosing to third parties any information regarding consumer’s purchase, lease, rental or borrowing of such materials.
While Meredith argued that magazines were not covered, U.S. District Judge Thomas L. Ludginton said that a “reasonable interpretation” of the wording “other written material” could include magazines, countering Meredith’s argument. He said that providing security of subscriber data was consistent with the purpose of VRPA.
Judge Ludington allowed the class action lawsuit to continue with claims of video privacy violations and unjust enrichment, but did not allow Kinder’s breach of contract allegation to continue in August 2014.
Following the August 2014 order, both parties submitted a settlement agreement to the court in October.
The privacy class action lawsuit settlement will be open to approximately 980,000 Michigan residents who purchased subscriptions to any of Meredith’s magazine publications between Jan. 1, 2009 and Mar. 28, 2014.
Judge Ludington concluded, “The motion for preliminary approval submitted by the parties is thorough and reflects a comprehensive and diligent process by which resolution was reached, considering the likelihood of success on the merits and the risks, expense and delay of further litigation. The settlement agreement adequately resolves the dispute between the parties in a manner that is fair to those involved.”
Eligible Class Members have until Apr. 11, 2016 to object to the magazine class action settlement and a final approval hearing will be held on May 11, 2016.
More information about the Meredith class action lawsuit settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.
Kinder is represented by Jay Edelson, Ari J. Scharg and Benjamin S. Thomassen of Edelson PC.
The Meredith Magazine Privacy Class Action Lawsuit is Kinder v. Meredith Corp., Case No. 1:14-cv-11284, in the U.S. District Court for the Eastern District of Michigan.
The post $7.5M Settlement Reached in Magazine Privacy Class Action Lawsuit appeared first on Top Class Actions.
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