We have seen several cases in the last two years alleging privacy violations, HIPAA breaches, and illegal wiretapping in relation to the tracking pixels used by social media companies and their B2B customers to support back-end website functionality. (For example, if you had a business selling socks over the internet and used Facebook's merchant services, you might have the pixel implemented on your site and not be aware that it is communicating with Facebook about Facebook users' activity on your site.) Although many plaintiffs are suing Facebook for such activities, the user lawsuits are also targeting the customer websites, many of which belong to small businesses that lack the resources to fight these claims vigorously.
Now comes a new flavor: allegations that use of the Meta Pixel by outdoor sporting shops may disclose personal information about gun buyers in violation of a Pennsylvania law that preserves the privacy of such purchases. The panel in charge has ordered that the gun buyers' claims be consolidated with other wiretapping and privacy class action claims associated with the pixel.
Why It Matters
Plaintiffs' lawyers are trying ever-more specialized laws on for size as they seek to capitalize on alleged privacy violations by the Facebook pixel (and similar trackers from Google and other companies). The use of gun-buying privacy laws is a new front, however, and one that has the potential to be more politically fraught than allegations of unauthorized use of less-sensitive personal information. Small businesses should be sure they know what information the pixel transmits about their users, and to make user disclosures accordingly. Privacy will continue to be a big-dollar issue for the plaintiff's bar, and there is substantial potential for overlap with sensitive topics.