Funko Hit with New Lawsuit Over Data Mismanagement
A new lawsuit filed in federal court this week claims Everett-based Funko, maker of the beloved Pop! vinyl figures, has been collecting and selling users’ data without permission.
Data Collection at the Heart of the Lawsuit
The lawsuit, filed by the law firm Edelson PC, alleges that Funko has been using its websites and mobile apps to collect personal data from users, including credit card information and browsing history. The company then sells this data to third-party companies, the lawsuit claims, often without the user’s knowledge or consent.
“Funko’s business model is built on collecting and selling its users’ personal data,” said Gregory Ostfeld, a partner at Edelson PC. “We believe this is a blatant disregard for consumers’ rights and we’re seeking accountability on their behalf.”
The lawsuit specifically targets Funko’s collection and sale of sensitive information, including credit card numbers and expiration dates. The company uses this data to market its products and offer personalized experiences to its users, the lawsuit claims.
Funko’s Response: Protecting Customer Data
Funko, in a statement released earlier this week, maintained that it takes the collection and protection of customer data seriously. The company claims to have implemented robust security measures to safeguard its users’ information and prevent unauthorized access.
“Funko is committed to ensuring the security and integrity of its customers’ data,” a company spokesperson said. “We take all allegations of data misuse seriously and will work to resolve this matter in a fair and transparent manner.”
The lawsuit seeks damages, as well as a court order requiring Funko to change its data collection practices. Funko, which has seen significant growth in recent years, is a beloved brand among pop culture enthusiasts and collectors.
The lawsuit marks the latest development in a growing trend of companies facing scrutiny over their data collection and use practices. As consumers become increasingly aware of the value of their personal data, companies are under mounting pressure to be transparent about how they collect, use, and protect this information.
Funko has faced similar allegations in the past, with the company agreeing to a settlement with the Federal Trade Commission (FTC) in 2014 over concerns about its data collection practices. The latest lawsuit, however, is more severe, alleging wilful disregard for consumers’ rights.