Venmo Users Sue PayPal Over Alleged Disclosure of Private Financial Data
Case Overview
The lawsuit was initiated by consumers, including Stacey Borquez, against PayPal, which operates Venmo. The core allegation is that PayPal shared private user data with third parties without obtaining the necessary consent from the users. Venmo, a peer-to-peer payment service owned by PayPal, generates transaction records containing sender and recipient identities, amounts, and transaction notes.
The plaintiffs contend that despite PayPal's privacy statements assuring users that personal information would remain private and not be disclosed for marketing purposes, Venmo embedded third-party tracking technologies. This allegedly allowed companies such as mParticle and Kochava to intercept and record sensitive data, including full names, email addresses, phone numbers, advertising IDs, and transaction details. The suit further alleges that these actions violate federal and state laws, including the Gramm-Leach-Bliley Act, the Electronic Communications Privacy Act, and various California privacy statutes.
The plaintiffs seek to represent a nationwide class of individuals who used Venmo, had private settings enabled, and whose personally identifiable information was allegedly intercepted by third parties. The lawsuit claims PayPal's actions were deliberate, constituting an invasion of privacy, negligence, and unjust enrichment. The case is currently filed in the U.S. District Court for the Northern District of California, and the plaintiffs are seeking class certification, damages, and a jury trial.
Who May Qualify
All persons in the United States who used the Venmo platform, had their privacy settings set to private, or enabled at least one private transaction, and whose personally identifiable information was disclosed to or intercepted by third parties.
Frequently Asked Questions
What specific data is allegedly being disclosed?
The lawsuit alleges that the disclosed information includes the sender’s full name, email address, phone number, advertising ID, the recipient’s identity, the amount paid, and the note describing the transaction’s purpose.
What laws are cited in the lawsuit?
The plaintiffs allege violations of federal and state privacy laws, specifically mentioning the Gramm-Leach-Bliley Act, the Electronic Communications Privacy Act, the California Invasion of Privacy Act, the California Comprehensive Computer Data Access and Fraud Act, and the California Constitution’s right to privacy.
Who is representing the plaintiffs?
The plaintiffs are represented by Amber L. Schubert and Sonum Dixit of Aylstock Witkin Kreis & Overholtz PLC, and Christian Levis, Patricia Zapata Latzer, and Anthony M. Christina of Lowey Dannenberg P.C.
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