The Video Privacy Protection Act ( VPPA) is a landmark federal law that emerged in 1988, primarily to address concerns about the unauthorized disclosure of video rental information. Initially designed for the age of physical video rentals, the VPPA has since become a key tool in modern data privacy litigation, especially in an era where video streaming and digital tracking are pervasive. As we’ve seen more and more claims being lodged against businesses big and small we’re seeing an explosion in insurance claims that are costing insureds millions of dollars from this obscure 1988 law.
Captain Compliance explores the VPPA’s purpose, its requirements, and its implications for businesses, with a focus on litigation risks and strategies for compliance and how data privacy software can resolve these issues.
What Is the VPPA and Why Does It Matter?
The VPPA was signed into law after a high-profile incident involving the unauthorized release of Supreme Court nominee Robert Bork’s video rental records. This event highlighted the need for consumer privacy protections in the video rental market. Today, the VPPA applies broadly to any “video tape service provider,” which includes streaming platforms, video content websites, and mobile applications. So that video player on your website is now a risk.
Key Objectives of the VPPA Lawsuits
- Protect Consumer Privacy: Prevent unauthorized disclosure of personally identifiable information (PII) related to video services.
- Enforce Accountability: Establish legal remedies for consumers whose privacy rights are violated.
- Adapt to Technology: Although written in 1988, the VPPA’s language applies to digital contexts, such as data sharing by video streaming services and tracking technologies. The image below is where the VPPA stemmed from leaks of video rental records.

VPPA and Personally Identifiable Information (PII)
Under the VPPA, PII refers to any information that identifies an individual as having requested or obtained specific video materials or services. This includes traditional identifiers like names and addresses, but in the digital era, it also extends to device IDs, IP addresses, or unique user identifiers if they can be linked to video-viewing behavior.
Examples of PII in Modern Applications
- Email addresses used for video service accounts.
- Cookies or tracking pixels that record video-viewing habits.
- Device information tied to specific content consumption.
- Chatbots on websites that play videos and take in your personal data without your consent.
Consent Requirements Under the VPPA
Under the VPPA, consent for the disclosure of personally identifiable information (PII) must be explicit, informed, and in writing. This consent must clearly outline the scope of data sharing, specify the recipient parties, and explain how the information will be used. Importantly, consent cannot be bundled with unrelated agreements or coerced through misleading practices. Businesses must ensure their consent mechanisms comply with these requirements, such as providing clear options for users to opt-in or opt-out, to avoid potential legal challenges under the VPPA.
What Constitutes Valid Consent?
The VPPA places significant emphasis on obtaining valid consumer consent before disclosing PII. Consent must be:
- Informed: Consumers must fully understand what data is being shared, who it is shared with, and for what purpose.
- Written: Consent should be documented, whether digitally or physically.
- Freely Given: Consent must not be coerced or buried within unrelated agreements.

Challenges in Implementing VPPA-Compliant Consent
Many companies face difficulties ensuring their consent mechanisms meet VPPA standards. For instance, using vague language in privacy policies or failing to separate consent from general terms of service can lead to violations. Thats why having a strong privacy notice that fully discloses data sharing practices and can be dynamically updated like our Adaptive Privacy Policy software is so valuable to businesses.
VPPA Litigation: An Increasing Trend
As digital video platforms have expanded, so too has litigation under the VPPA. Consumers have filed numerous lawsuits against companies for allegedly mishandling PII, often focusing on unauthorized sharing with third parties like analytics or advertising platforms. The most well known litigators happen to be coming out of California. It’s led by Joshua Swigart of Swigart Law and Scott Ferrell of Pacific Trial Attorneys who have successfully filed, won, or settled cases for millions of dollars related to privacy violations either from CIPA or VPPA.
High-Profile VPPA Lawsuits
- Hulu Case (2015): Hulu was accused of sharing user viewing data with Facebook. Although the court found Hulu did not knowingly disclose PII, this case underscored the importance of understanding what constitutes “knowing disclosure” under VPPA.
- Harris v. HBO Max (2022): This case involved allegations that HBO Max shared users’ data with social media platforms for advertising purposes, without proper consent.
- ESPN Settlement: ESPN resolved claims that it had shared app users’ PII with marketing partners without appropriate disclosures or consent.
Understanding VPPA Exceptions
While the VPPA broadly prohibits unauthorized disclosure of PII, it provides certain exceptions:
- Legal Orders: Disclosure is permissible when required by a valid court order, subpoena, or law enforcement directive.
- Written Consent: Consumers can authorize disclosure through informed, written consent. So check the cookie consent banner and privacy notice on the website.
- Business Transactions: Data may be shared as part of a company merger, acquisition, or sale, provided privacy protections remain in place.
- Use by the Service Provider: Companies may share data internally to improve their services without breaching VPPA.
VPPA Privacy Policies and Best Practices
Companies subject to the VPPA must maintain robust privacy policies that clearly communicate:
- What data is collected and how it is used.
- Who has access to the data.
- How consumers can opt-out or withdraw consent.
Failure to include VPPA-specific language in privacy policies can lead to compliance failures and increase litigation risks. Again all of these claims are avoidable if you have good privacy hygiene.
VPPA Claims and Statutory Damages
The VPPA allows consumers to file lawsuits for alleged violations, with potential statutory damages of $2,500 per person per violation. Given the scale of modern data collection, this can lead to massive financial exposure for companies facing class-action lawsuits.
Common VPPA Violations
- Sharing user data with third-party advertisers or analytics platforms without consent.
- Embedding tracking tools like session replays or cookies that disclose PII.
- Failing to provide clear and specific disclosures in privacy policies.
VPPA Settlements: Learning from the Past
Settlements in VPPA cases often require companies to pay significant financial penalties while agreeing to revise their data practices. These practices include adding into their privacy notice the details of the tracking software, adding a version of the Captain Compliance Cookie Consent Banner to give users the ability to accept or deny consents, and to stay vigilant of new tracking tech on their websites. These settlements send a strong message about the importance of compliance.
Notable VPPA Settlements From Major Companies
- Netflix Case: Netflix faced VPPA-related claims regarding data retention policies. The company resolved the lawsuit by enhancing its privacy measures.
- TikTok Settlement: TikTok settled claims involving allegations that it violated VPPA by tracking and sharing users’ video preferences without proper consent.
Best Practices on How to Protect Against VPPA Claims
Businesses can take several proactive steps to minimize VPPA litigation risks:
- Clearly disclose data collection and sharing practices in privacy policies.
- Obtain explicit and written consent for any data sharing related to video preferences.
- Audit third-party integrations, ensuring vendors comply with VPPA standards.
- Regularly review and update privacy policies to address changes in the law.
Five Steps for VPPA Compliance
- Conduct a Data Audit: Identify what PII is being collected and how it is used.
- Implement Consent Mechanisms: Develop tools to capture informed, written consent from consumers.
- Limit Data Sharing: Restrict data sharing to only what is essential and permitted under the VPPA.
- Train Employees: Ensure staff understand the importance of VPPA compliance and how to achieve it.
- Leverage Privacy Software: Use tools like CaptainCompliance.com to automate compliance efforts, track consent, and flag potential violations.
Using Technology to Prevent VPPA Violations
Technology can play a crucial role in preventing VPPA litigation. Compliance software like CaptainCompliance.com offers robust tools to manage data sharing, track consent, and ensure compliance with privacy regulations.
Key Features of VPPA Compliance Software
- Consent Tracking: Automatically records consumer consent for data sharing.
- Policy Automation: Generates VPPA-compliant privacy policies.
- Third-Party Monitoring: Audits vendor relationships to ensure compliance.
- Real-Time Alerts: Flags potential violations before they escalate.
By integrating compliance tools into your businesses operations, you can proactively address VPPA risks and maintain consumer trust. Most of this is automated after being setup so it doesn’t require a full time compliance officer or law firm to oversee.
VPPA Was Made For Blockbuster Video But Here’s How To Deal With it in 2025
The Video Privacy Protection Act remains a cornerstone of data privacy law, with its influence growing in the digital age. Companies must understand the VPPA’s requirements, address compliance gaps, and proactively manage risks to avoid costly litigation. By adopting best practices, implementing robust consent mechanisms, adaptive privacy notices, and leveraging data privacy and Captain Compliance’s software, businesses can navigate this complex legal landscape with confidence and stop getting sued for VPPA violations and paying out millions of dollars.
As data privacy concerns continue to evolve, adhering to the principles of the VPPA will not only mitigate legal risks but also strengthen consumer trust in an increasingly data-driven world. If you don’t add privacy software to your apps and websites you can almost guarantee that you will be targeted sooner than later.