Forbes to Pay $10 Million in Privacy Class Action Settlement
Forbes Media has agreed to a $10 million preliminary settlement to resolve a class-action lawsuit alleging the company violated California privacy laws by tracking users without consent.
Forbes Media has reached a preliminary settlement of $10 million to resolve a class-action lawsuit alleging that the company engaged in unauthorized digital tracking of its website visitors. The lawsuit, filed in California, accused the media organization of violating state privacy laws by deploying tracking technologies that monitored user activity across the internet without obtaining proper consent The Record.
The core of the legal challenge centered on allegations that Forbes utilized "pen registers" and "trap and trace" devices to harvest unique identifiers, including IP addresses, from its users. According to the plaintiffs, these trackers—developed by LinkedIn and Microsoft—were designed to transmit user data to third-party databases. This information was subsequently used to build comprehensive profiles of individuals' browsing and shopping habits across the web The Record.
The plaintiffs argued that these practices constituted a direct violation of the California Invasion of Privacy Act and the state’s Unfair Competition Law. By failing to disclose the extent of this data collection, the lawsuit claimed Forbes deprived users of the ability to control their personal information, effectively tracking them across the internet without their knowledge or authorization The Record.
Under the terms of the preliminary settlement agreement released this past Thursday, Forbes has committed to significant changes in its business practices. The company will provide users with "greater notice" regarding its use of tracking technologies. Furthermore, Forbes will implement new language on its website specifically designed to grant California residents enhanced control over how their personal data is collected and shared with third-party entities The Record.
The financial component of the settlement provides for payments to class members, with individual payouts estimated to range between $32 and $189, depending on the final number of valid claimants who participate in the settlement process The Record. As of the time of the announcement, a spokesperson for Forbes Media had not provided a comment regarding the agreement.
This settlement highlights the growing legal scrutiny surrounding the use of third-party tracking scripts on high-traffic websites. As privacy regulations tighten, particularly in jurisdictions like California, companies are increasingly facing litigation over the transparency of their data collection practices. The outcome of this case serves as a reminder of the potential financial and operational risks associated with integrating third-party trackers that aggregate user behavior for external data ecosystems The Record.