DirectToU $1.58M Video Privacy Class Action Settlement

Consumers who purchased a video or videogame from DirectToU or signed up to receive notices about videos or videogames from DirectToU, may qualify to submit a claim for a cash payment estimated at $60 to $145 from a class action settlement.

DirectToU LLC and Alliance Entertainment LLC have agreed to pay $1.58 million to settle a class action lawsuit alleging that they disclosed customers’ personally identifiable information to third parties without consent, in violation of the Video Privacy Protection Act (VPPA) and California law.

Who can file a claim for a class action payout?

The settlement class includes:

• Nationwide class: Individuals residing in the United States who purchased a video or videogame from DirectToU or signed up to receive notices about videos or videogames from DirectToU, and whose information identifying them as having requested or obtained specific video materials or services from the defendants may have been disclosed to a third party between Aug. 8, 2022, and Sept. 22, 2025.
• California subclass: Individuals residing in California who purchased a video or videogame from DirectToU or signed up to receive notices about videos or videogames from DirectToU, and whose information identifying them as having requested or obtained specific video materials or services from the defendants may have been disclosed to a third party between Aug. 8, 2020, and Sept. 22, 2025.

How much is the privacy settlement payment?

Pro rata cash payment: Class members can submit to receive a pro rata cash payment, estimated between $60 and $145. The final payment amount will be determined by the number of claims filed.

How to claim a class action rebate

To receive a settlement payment, a claim form must be submitted by Jan. 20, 2026. Class members can file a claim online or print and mail the PDF claim form to the settlement administrator.

Settlement administrator's mailing address: DirectToU Settlement Administrator 1650 Arch Street, Suite 2210 Philadelphia, PA 19103

Required claim information

Notice ID and Confirmation code from official settlement notice required to submit an online claim.

Payout options

Class members can select from the following payment options:

• Paper check mailed to the address provided
• Prepaid Mastercard
• Venmo payment
• Zelle
• PayPal

$1.58 million VPPA settlement fund

The settlement fund of $1,577,000 will include:

• Settlement administration costs: Up to $125,000
• Attorneys' fees: Up to $394,250
• Attorneys' costs: $20,000
• Service awards to class representatives: Up to $5,000 each, a total of $15,000
• Payments to class members with valid claims: Remaining settlement funds

Important dates

• Deadline to file a claim: Jan. 20, 2026
• Exclusion deadline: Jan. 20, 2026
• Fairness hearing: Jan. 28, 2026

When is the DirectToU and Alliance Entertainment settlement payout date?

Payments to approved claimants are expected to be distributed approximately 75 days after the court grants final approval of the settlement.

Why was there a class action settlement?

The class action lawsuit alleged that DirectToU LLC and Alliance Entertainment LLC disclosed customers’ personally identifiable information to third parties without consent, violating the Video Privacy Protection Act and California law. The companies denied any wrongdoing, but agreed to settle in order to avoid the cost and uncertainty of continued litigation and a possible trial.

The settlement also requires the defendants to change their data-sharing practices, including modifying Facebook Pixel settings to prevent sharing specific product information with Facebook and ceasing sharing customer transaction data with third parties except as permitted by law.

Sources

1. Official class notice
2. Settlement website FAQ page
3. Claim form