A Wisconsin federal judge has ruled against dismissing a proposed class action lawsuit accusing Pesi Inc., a healthcare continuing education provider, of violating federal video privacy laws by sharing customers’ video purchase information with major tech companies and data brokers.
In an order issued on Tuesday, U.S. District Judge James D. Peterson denied Pesi Inc.’s motion to dismiss the claims brought by plaintiff Dana Manza. The lawsuit alleges that Pesi unlawfully disclosed customers’ educational video purchase data, including to companies such as Meta, Google, and Pinterest, in violation of the Video Privacy Protection Act (VPPA). Additionally, Manza claims Pesi sold purchase histories and other personally identifiable information (PII) to NextMark Inc. and other third-party data brokers.
Pesi, a nonprofit organization specializing in healthcare-related educational videos on topics like sex and couples therapy, argued it did not qualify as a “videotape service provider” under the VPPA and that the data disclosed was not considered PII under the statute. However, Judge Peterson rejected these arguments, clarifying that the VPPA applies to “prerecorded audiovisual materials” beyond traditional videotapes and that nonprofit status does not exempt Pesi from the law’s requirements.
The judge further emphasized that information linked to video purchases, even if encoded or presented as unique identifiers, constitutes PII if it can be used by third parties to identify individuals. He found the defense’s reliance on an “ordinary person” identification standard unpersuasive, warning that it would create a significant loophole allowing providers to circumvent privacy protections by using coded identifiers.
Judge Peterson also dismissed claims that the plaintiff failed to state a plausible case due to alleged gaps in the complaint, stating these issues are premature to resolve at the motion to dismiss stage.
This decision marks a significant development in the Health Education Provider Video Privacy Suit, affirming the applicability of federal privacy protections to digital educational video providers and their data-sharing practices.
