Game over for these companies?
DirectToU and Alliance Entertainment have agreed to a $1.57 million class action settlement after video game players claimed the businesses shared consumer information with third parties without consent, violating the federal Video Privacy Protection Act (VPPA).
Consumers who purchased videos or video games or signed up to receive notifications about videos or video games from DirectToU between Aug. 8, 2022, and Sept. 22, 2025, may have had their information disclosed to a third party.
They will be eligible for a portion of the seven-figure sum.
Meanwhile, the settlement also benefits California residents whose information was shared with a third party between Aug. 8, 2020, and Sept. 22, 2025.
DirectToU is a retailer selling videos and video games from a variety of brands, and Alliance Entertainment is a similar retailer that sells videos, video games, music and more.
DirectToU and Alliance Entertainment agreen to the settlement, though they have not admitted any wrongdoing.
According to the lawsuit, the companies violated the VPPA by using Facebook Pixel technology on their sites, which allegedly allowed consumer information — including what the consumers purchased — to be shared with Facebook.
Eligible class members are estimated to receive a cash payment between $60 and $145, though actual payouts may be higher or lower depending on the number of members and the net fund after deductions.
To receive a payment, eligible class members must submit a valid claim form by Jan. 20, 2026.
For proof of purchase, members will have to provide their DirectToU account number, if known. Those who received a personalized notice in the mail or via email will have a Notice ID and Confirmation Code to enter.
The final approval hearing for the class action settlement is scheduled for Jan. 28, 2026.
