2U finally released their annual report, or 10-K, last week. While reading through it, I noticed they mentioned a class action lawsuit against edX.

This looked very similar to the one that Coursera mentioned in their annual report, which I wrote about last week. Intrigued, I rushed to search through Udemy’s annual report, and there it was—another lawsuit!

Upon further research, I discovered that these kinds of class action suits go beyond online course providers and extend to many video platforms.

The Culprit: Facebook / Meta Pixel

The common thread among these lawsuits is the Facebook / Meta Pixel. It’s a small piece of code that many websites use to track user behavior, optimize advertising, and share data with Meta. Class Central had previously analyzed how closely the top online course platforms are tracking learners.

What’s the Lawsuit About? 

The Video Privacy Protection Act (VPPA), a federal law enacted in 1988, is at the heart of these legal battles. Originally designed to safeguard the confidentiality of video rental records, the VPPA prohibits “video tape service providers” from sharing personally identifiable information about a consumer’s viewing habits without written consent.

The lawsuits hinge on whether online platforms with video content qualify as “video tape service providers” under the law. Plaintiffs argue that the use of tracking technologies, such as Meta Pixel, to monitor video consumption and share data with Meta amounts to a violation of the VPPA—even though the law predates these technologies.

Bloomberg Law reported that in October 2022, more than 50 such class action lawsuits were filed. A notable case against the Boston Globe, which was settled for $5 million, centered on allegations that the newspaper’s integration of Meta Pixel for tracking video views on their website violated the VPPA.

Online Course Giants Targeted

The lawsuits against Udemy, edX, and Coursera share similar allegations. In each case, the plaintiffs claim that the companies disclosed users’ video viewing history and other personal information to third parties, such as Facebook or advertisers, without obtaining proper consent from the users. The plaintiffs seek various forms of relief, including injunctive relief (i.e. putting an end to the alleged infringements), monetary damages, and attorney fees.

Udemy, edX, and Coursera have all stated their intention to vigorously defend themselves against these claims. They have filed motions to dismiss the complaints or compel arbitration in some cases.

I wouldn’t be surprised if other course providers have also been targeted in a similar fashion.