Roku Uses Fine Print to Push Kids’ Privacy Suits Into Arbitration

Roku is attempting to force class-action lawsuits over alleged child privacy violations into private arbitration, arguing a clause in its terms of service, which parents agree to, also applies to their children. The legal maneuver is a bid to dismantle the lawsuits and avoid a public court battle.

• A fine-print defense: The foundation of Roku’s argument is a February 2024 update to its 'dispute resolution terms', which requires users to consent to arbitration. "When parents agree to arbitrate disputes related to products and services they bring into their home and for their children’s benefit, claims brought by their children... must be resolved through arbitration as the parents agreed," the company stated in court filings.

• How it started: The legal challenges stem from charges filed by Michigan Attorney General Dana Nessel, who accused Roku of violating child privacy laws by collecting data from users under 13 and sharing their viewing histories with tech giants like Google and Meta. While Roku "strongly disagrees" with the allegations, the private lawsuits followed, citing similar claims.

• Wiretaps and privacy rights: The private lawsuits also introduce distinct legal claims not in the AG’s complaint, including violations of federal and state wiretap laws and a right to privacy under California's constitution. The legal teams for the children have yet to file a formal response to Roku's push for arbitration.

The case is shaping up to be a major test of whether a parent's consent to a company's terms of service can waive a child's statutory privacy rights and shield a company from class-action liability. As the legal battle unfolds, you can review Roku's official privacy policy to see its public statements on data collection.