In a recently filed proposed class-action lawsuit, it has been alleged that H&R Block, Meta (formerly Facebook), and Google collaborated to collect and share sensitive financial information from taxpayers using spyware. The lawsuit claims that these companies violated privacy laws and exploited tracking pixels, a data collection technology, to gather and monetize users’ personal information without their consent.
The Allegations
The lawsuit asserts that H&R Block, Meta, and Google conspired to collect and exploit data on H&R Block customers without their consent. It claims that tracking pixels, which operate in the background of websites, tracked visitors’ entries in real time. H&R Block, as a tax preparation service, was legally obliged to protect customers’ sensitive financial information and refrain from sharing it with third parties without their consent.
However, the plaintiffs argue that H&R Block tried to bypass these legal obligations by using vague language in customer consent agreements and programming agreements with Meta and Google. The complaint further alleges that Meta and Google misled consumers by concealing the types of information that could be accessed by website developers like H&R Block.
Violations of Privacy Laws
The lawsuit contends that H&R Block, Meta, and Google violated federal privacy and wiretapping laws, as well as the Internal Revenue Code. It claims that the companies collected taxpayers’ names, Social Security numbers, addresses, adjusted gross incomes, filing statuses, refund amounts, deductions, dependents, income properties, birthdates, health savings account contributions, education expenses, and other sensitive information without proper consent.
The Impact of Spyware
The complaint states that H&R Block illegally deployed Meta’s Pixel software, which tracks the information entered by tax preparers into their online portal. This spyware assigns each H&R Block user a unique digital identifier, allowing Meta to track their activities both on the H&R Block website and on other websites containing Meta Pixel. By doing so, Meta can provide marketing partners with detailed insights into users’ online activities.
Similarly, Google’s pixel system, Google Analytics, was allegedly used by H&R Block to collect and send default user information to Google. For more sophisticated companies like H&R Block, Google offered an additional pixel product called Google Tag, which collected more intimate details about website visitors. This allowed H&R Block to collect and send taxpayers’ names, health savings account contribution information, and other sensitive data to Google.
Monetary Gains from Data Collection
The plaintiffs argue that H&R Block, Meta, and Google understood the value of highly sensitive personal financial data. Meta’s annual advertising revenue in 2022 exceeded $113 billion, while Google’s search advertising revenue surpassed $160 billion. These companies, according to the complaint, treated users’ personal financial data as a form of currency and used it to generate significant revenue through targeted advertising.
The Lawsuit and Legal Implications
The proposed class-action lawsuit seeks to hold H&R Block, Meta, and Google accountable for their alleged illegal data collection practices. The plaintiffs are requesting an injunction to prevent the companies from using tracking pixels to collect sensitive information. Additionally, they seek punitive damages and the disgorgement of profits obtained through the unauthorized use of consumers’ data.
The plaintiffs argue that H&R Block, Meta, and Google violated federal racketeering and other laws by misleading consumers and conspiring to collect and share personal tax data without consent. If the allegations are proven, the companies could face significant legal consequences, including substantial fines and reputational damage.
Response from the Companies
Google and Meta have responded to the lawsuit, asserting that they have strict policies in place to prevent the collection of identifying information through their analytics and pixel systems. They maintain that website owners, not Google or Meta, control the information collected and are responsible for informing users of its use. Both companies claim to have strict policies against advertising based on sensitive information.
H&R Block has yet to respond to the allegations made in the lawsuit.
See first source: Yahoo Finance
FAQ
1. What is the class-action lawsuit against H&R Block, Meta, and Google about?
The lawsuit alleges that H&R Block, Meta (formerly Facebook), and Google collaborated to collect and share sensitive financial information from taxpayers using spyware. It claims that these companies violated privacy laws and exploited tracking pixels, a data collection technology, to gather and monetize users’ personal information without their consent.
2. What are the specific allegations made in the lawsuit?
The allegations in the lawsuit include:
- H&R Block, Meta, and Google conspired to collect and exploit data on H&R Block customers without their consent.
- Tracking pixels were used to track visitors’ entries in real time.
- H&R Block attempted to bypass legal obligations by using vague language in customer consent agreements.
- Meta and Google misled consumers by concealing the types of information that could be accessed by website developers like H&R Block.
3. What privacy laws are alleged to have been violated by these companies?
The lawsuit contends that H&R Block, Meta, and Google violated federal privacy and wiretapping laws, as well as the Internal Revenue Code. It claims that these companies collected a wide range of sensitive financial information without proper consent.
4. How did spyware impact users in this case?
The complaint states that H&R Block deployed Meta’s Pixel software, which tracks information entered by tax preparers into their online portal. Google’s pixel system, Google Analytics, was also allegedly used to collect user data. These technologies allowed the companies to track users’ online activities and collect sensitive information.
5. What were the monetary gains from data collection alleged in the lawsuit?
The plaintiffs argue that H&R Block, Meta, and Google treated users’ personal financial data as a form of currency and used it to generate significant revenue through targeted advertising. Meta’s annual advertising revenue in 2022 exceeded $113 billion, while Google’s search advertising revenue surpassed $160 billion.
6. What are the legal implications of this lawsuit for H&R Block, Meta, and Google?
The proposed class-action lawsuit seeks to hold these companies accountable for their alleged illegal data collection practices. The plaintiffs are requesting an injunction to prevent the use of tracking pixels for collecting sensitive information, punitive damages, and the disgorgement of profits obtained through unauthorized data use. If the allegations are proven, the companies could face substantial fines and reputational damage.
7. How have Google and Meta responded to the lawsuit?
Google and Meta have responded by asserting that they have strict policies in place to prevent the collection of identifying information through their analytics and pixel systems. They maintain that website owners, not Google or Meta, control the information collected and are responsible for informing users of its use. Both companies claim to have strict policies against advertising based on sensitive information.
Featured Image Credit: Michael Geiger; Unsplash – Thank you!
