Amended Complaint Targets NBA Properties and Dapper Labs in Data Privacy Case
On Friday, November 1, 2024, Thomas Fan, Matthew Kimoto, and Clinton Brown filed a third amended complaint in the US District Court for the Northern District of California against NBA Properties, Inc. and Dapper Labs, Inc. The plaintiffs allege that the defendants violated the Video Privacy Protection Act (VPPA) by collecting and sharing sensitive information regarding basketball fans’ video consumption without their informed consent.
The lawsuit centers on NBA Top Shot, a digital platform developed by the defendants that allows fans to buy and trade blockchain-based “moments” of NBA highlights. These moments function similarly to trading cards but are represented as non-fungible tokens (NFTs), which are stored on a private blockchain. The plaintiffs claim that despite the anonymity intended by blockchain technology, NBA Top Shot disclosed personally identifiable information (PII) to third parties, particularly Meta Platforms, Inc., without user consent.
According to the complaint, NBA Top Shot uses a tracking feature known as the “Meta Tracking Pixel.” This tool is said to monitor user activity and track video consumption. The plaintiffs assert that this tracking occurs without the knowledge of users and results in the transmission of their video viewing history to Meta, which utilizes this data for targeted advertising.
The VPPA was enacted to protect consumers’ privacy regarding their video rental and viewing habits. The plaintiffs argue that the defendants’ practices contravene the VPPA’s intent, which is to prevent the misuse of personal information collected for one purpose. The complaint notes that the VPPA prohibits video service providers from knowingly disclosing PII without consent.
In the lawsuit, the plaintiffs detail their experiences with NBA Top Shot and how their viewing habits were tracked and shared. They describe the process of creating accounts on the platform, which involves generating random usernames that are meant to maintain user anonymity. However, the plaintiffs assert that this anonymity is compromised by the data-sharing practices of NBA Top Shot with Meta, which links users’ viewing activities to their real identities through cookies.
The complaint outlines the structure of NBA Top Shot and explains that it operates as an unincorporated joint venture selling digital highlights to fans. The platform allows fans to own and trade specific moments from NBA games, which are minted and numbered as NFTs. The plaintiffs state that while users can view these moments publicly, only those who purchase them can claim ownership.
Amidst the allegations, the plaintiffs emphasize the importance of informed consent in the digital age, particularly as it relates to personal data. They contend that the practices of NBA Top Shot undermine this principle by sharing users’ data without their explicit agreement.
The complaint also highlights the legal framework surrounding the case, establishing that the court has subject matter jurisdiction due to the federal nature of the VPPA violation. The plaintiffs seek class-action status for individuals similarly affected by the defendants’ data practices, claiming that the potential class exceeds 100 members and the amount in controversy exceeds $5 million.
Please contact BlockTribune for access to a copy of this filing.
