The agreement will create a $3.75 million compensation fund that will pay up to $10,000 each to buyers who used the companion We-Connect app, and $199 to those who just used the vibrator.
According to the lawsuit, the We-Connect app was transmitting information including dates and times of use, as well as vibration mode and pattern to the company’s servers, along with personally-identifiable email addresses without notifying customers.
Standard Innovation is now required to collect only non-identifiable information in aggregate form and inform customers it is doing so.
Customers who used the app to control the We-Vibe device before Sept. 26, 2016 are eligible for up to $10,000, whereas those who simply bought a device are eligible to receive up to $199 each.
The lawsuit highlights growing concerns over connected devices and the information they share. We-Vibe and We-Connect were only supposed to be sending data to assist with product improvement and diagnostics, but purchasers were neither informed about this nor told that their information would not be sold to advertisers or otherwise misused.
The Plaintiffs, identified only as “N.P.” and “P.S.” in court documents, had alleged unjust enrichment and violations of the Federal Wiretap Act, along with Illinois state privacy laws.