San Francisco — Millions of Cash App users might be eligible to claim a slice of a hefty lawsuit settlement after a class action suit targeted the financial platform for alleged privacy violations. Cash App, a popular mobile payment service managed by Block Inc., formerly known as Square Inc., has agreed to a preliminary $23.5 million settlement over claims it violated users’ privacy by using their personal data for targeted advertising.
The lawsuit, originating from a complaint filed in California in 2020, contended that Cash App improperly shared personal and financial information of its users without adequate notice or consent. If the court finalizes the settlement in the upcoming hearing, users who conducted transactions between July 1, 2017, and August 1, 2022, will be eligible to file for compensation.
Each eligible user could receive up to $2500, depending on the number of claims and how much the app impacted each individual during the specified period. Legal specialists commented that the significant potential payout underscores the seriousness of protecting consumer data in an era where digital transactions have become the norm.
The scale of potential beneficiaries is vast — Cash App boasts tens of millions of users in the U.S., many of whom might have been unknowingly affected by the privacy breaches. This legal resolution represents one of the larger settlements in recent years concerning privacy violations in the tech industry.
According to the proposed settlement terms, Cash App will not only pay financially but will also agree to improve its privacy disclosures and practices. Expert opinion suggests that the changes mandated by this settlement may lead future mobile payment services to bolster their own privacy measures to avoid similar legal challenges.
Consumer rights advocates have hailed the settlement as a victory for individual privacy rights. They hope this case sets a precedent that reinforces the responsibility of tech companies to safeguard user data diligently.
Details on how affected users can claim their part of the settlement will be provided once the agreement is approved by the court. Users might need to complete a claim form, providing evidence of their eligibility by submitting transaction records or other relevant documentation from their Cash App accounts.
The hearing for final approval of the settlement is scheduled for the upcoming months. If approved, Block Inc. will also cover legal fees and administrative costs, further adding to the settlement’s total value.
This case highlights the ongoing tension between convenience and privacy in the digital age, advocating for a balance that protects consumer rights without stifiling innovation. As the digital economy continues to expand, this legal case will likely influence how companies address privacy concerns moving forward.