Crunchyroll Faces 2nd VPPA Lawsuit Alleging Illegal Sharing of Anime Viewing Data

Crunchyroll is in legal hot water, and this time it is not about a licensing dispute or a subtitle controversy. The popular anime streaming platform has been hit with a class action lawsuit alleging it violated the Video Privacy Protection Act, or VPPA, by allegedly sharing subscribers’ personal information and anime viewing habits with a third-party marketing company, all without user consent.

And here’s the kicker: this isn’t the first time Crunchyroll has been down this road.

What the Crunchyroll Lawsuit Actually Claims

According to court documents filed in the Central District of California (Cabonios v. Crunchyroll, LLC, 2:26-cv-02373), plaintiffs claim that the Crunchyroll app embedded a Software Development Kit (SDK) from Braze, a marketing company formerly known as Appboy. Braze’s SDK is normally used to power features like targeted push notifications, in-app messages, and email campaigns. Pretty standard stuff, right? Not so fast.

The lawsuit alleges that through this integration, Crunchyroll was transmitting sensitive user data to Braze without ever getting proper consent. We’re talking email addresses, device IDs, and the specific names of anime titles and episodes users were actively watching. That’s not just metadata. That’s your entire viewing profile.

Plaintiffs argue that over time, this information enabled Braze to build “comprehensive profiles” of individual users’ viewing behavior across multiple sessions. In other words, someone out there potentially knows you’ve rewatched the same arc of Fullmetal Alchemist: Brotherhood four times. Honestly, no judgment there, but that’s not really the point.

Why the VPPA Matters in This Lawsuit

The VPPA was introduced by Senator Patrick Leahy after a reporter published the video rental history of Supreme Court nominee Robert Bork back in 1988. Yes, this law has a remarkably specific origin story. The legislation prohibits companies offering video content from disclosing personally identifiable information without consumer consent.

There are limited exceptions under the law, such as disclosures made with written consent, or those arising from court orders. Plaintiffs argue that Crunchyroll did not satisfy any of those exceptions. No consent form. No court order. Just data flowing to a third party.

Senator Leahy, in his words when introducing the bill, put it plainly: the movies we watch and the books we read reveal our dreams, fears, hopes, and individuality. For anime fans watching titles that include graphic violence or mature themes, the implications of that data being shared without consent are not exactly trivial.

Crunchyroll Has Been Here Before

This is where things get particularly embarrassing for Crunchyroll. The lawsuit describes the company’s alleged conduct as “particularly egregious” because Crunchyroll already settled a similar VPPA-related lawsuit back in 2023. That settlement came out to roughly $30 per affected user, totaling around $16 million. The company apparently didn’t walk away from that experience with a strong enough lesson.

At the time of filing, Crunchyroll had not responded to the lawsuit or to a request for comment from reporters who gave the company advance notice. Not exactly a great look when you’re sitting on a platform with over 17 million paying subscribers and approximately 130 million registered users globally.

Who the Lawsuit Covers and What’s at Stake

The plaintiffs are seeking class certification for two groups, both covering U.S. users only:

• Minor Subscriber Class: U.S. minors who created Crunchyroll accounts, watched videos through the app, and had their personal viewing information disclosed to Braze.
• Adult Subscriber Class: U.S. adults who created accounts and watched videos through the app, with the same alleged data disclosure occurring within the applicable statute of limitations.

Each VPPA violation carries potential damages of $2,500. Do the math with 17 million subscribers, and you’re looking at a number that could theoretically run into the billions. Realistically, these cases almost never reach that ceiling. Companies litigate aggressively, the process can drag on for years, and settlements tend to land far below worst-case projections.

What Happens Next

The case is currently before the U.S. District Court for the Central District of California. Crunchyroll, owned by Sony through Funimation’s merger, has not yet issued a public response. Given its prior settlement history, the company will likely contest the claims while simultaneously exploring whether a deal can be reached out of court.

For subscribers, the bigger question is one of trust. Anime viewership can be deeply personal. Some titles carry mature themes, graphic content, or subject matter that viewers reasonably expect to keep private. Finding out that information may have been transmitted to a marketing platform without consent is the kind of thing that makes you want to go back and check exactly what you’ve been watching over the past few years.

Crunchyroll built its brand on being the home for anime fans. Whether it can weather another lawsuit and come out with its credibility intact remains to be seen.