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We-Vibe Privacy Lawsuit: What the $3.75 Million Settlement Actually Resolved

Standard Innovation's C$5 million We-Vibe settlement resolved U.S. privacy claims over alleged app telemetry. The company denied wrongdoing, and the case is now closed.
From TheFinanceBase Team5 min to read
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Standard Innovation agreed to a C$5 million settlement—about US$3.75 million at the time—in a 2017 U.S. class action over alleged data collection by its We-Connect app and We-Vibe products. The company denied wrongdoing and liability; the settlement was not a court finding that it spied on customers or violated privacy laws. The case is closed, and claims are no longer being accepted.

What was the We-Vibe lawsuit about?

In N.P. and P.S. v. Standard Innovation Corp., Case No. 1:16-cv-08655, two women sued the Canadian maker of We-Vibe products in the U.S. District Court for the Northern District of Illinois. The dispute focused on the We-Vibe 4 Plus and the We-Connect mobile app. The complaint was filed in September 2016, followed by an amended complaint in February 2017. The settlement was announced in March 2017 and received final approval on August 15, 2017. The settlement filing sets out the case and its terms.

The We-Vibe 4 Plus connected to a smartphone over Bluetooth. We-Connect let a user adjust settings and, in a partner-enabled configuration, let a remote partner control the device. That remote feature relied on the app and server infrastructure, placing data transmission at the center of the dispute. Contemporaneous reporting described the product and the allegations.

What information did plaintiffs say the app transmitted?

The plaintiffs alleged that the app sent usage information to company servers, including servers in Canada, without adequate consent or disclosure. Settlement materials identified these categories:

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  • Dates and times of use.
  • Vibration intensity and selected mode or pattern.
  • Device temperature and battery life.
  • Email addresses provided during app registration, with exceptions for addresses supplied for newsletter or product-registration purposes.

These are app and device telemetry categories. The reviewed settlement materials do not establish that Standard Innovation recorded audio or video, collected biometric information, identified a user’s physical partner, or sold sexual data. The allegation that usage telemetry was collected and transmitted should not be turned into a broader claim about what the company knew.

What did the complaint claim, and what did the company say?

The complaint invoked the federal Wiretap Act, Illinois privacy law, intrusion upon seclusion, and other state and federal legal theories. Those were allegations, not findings that the laws had been violated. The case ended in a settlement rather than a trial or judgment on the merits.

Standard Innovation denied the allegations and liability, and maintained that users had consented to the conduct at issue. It said it was pleased to reach a fair and reasonable settlement and described steps including an enhanced privacy notice, increased app security, and more customer choice over data sharing. The agreement resolved the case without an admission of wrongdoing. The settlement agreement describes the parties’ positions and the terms.

Was this a hacking case?

Security demonstrations involving connected sex toys helped draw attention to privacy risks, but the lawsuit’s central issue was alleged app-to-company data collection and transmission. A possible device vulnerability and manufacturer telemetry are distinct issues: a demonstration of a potential way to access or control a device does not establish that hackers obtained the data discussed in this case. Contemporaneous coverage discussed the broader security context; it is not proof of a customer data breach.

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How was the settlement structured?

The agreement created two non-reversionary funds totaling C$5 million, described in contemporaneous U.S. reporting as approximately US$3.75 million. The court filing estimated about 300,000 purchasers and about 100,000 app users; those were estimated class sizes, not counts of successful claimants.

Settlement group Fund Who it covered
App Settlement Fund C$4 million, approximately US$3 million at the time Eligible U.S. residents who downloaded We-Connect and used it to control a We-Vibe product before September 26, 2016
Purchaser Settlement Fund C$1 million, approximately US$750,000 at the time Eligible U.S. purchasers of qualifying We-Vibe products, including purchasers who did not use the app

Contemporaneous coverage described potential maximum payments of up to US$10,000 for qualifying app users and up to US$199 for qualifying purchasers. These were ceilings, not guaranteed payments: the amount depended on valid claims and deductions for approved expenses, attorneys’ fees, and other payments. Later reporting said some checks were about US$128.16, illustrating the difference between a maximum and an actual distribution. The later payment report covered checks mailed in 2017.

The classes were defined for U.S. residents and qualifying purchasers under the agreement. The Canadian location of the company did not make this a worldwide settlement, and the product classes should not be read as proof that every We-Vibe model had identical data practices. The settlement motion and agreement define the covered groups and products.

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What did the settlement require beyond payments?

Standard Innovation agreed to destroy or purge covered information, subject to legal-retention and similar exceptions. The terms addressed app-registration email addresses, except those supplied for newsletter or product-registration purposes, and usage information such as timestamps, intensity, patterns, temperature, and battery life. The company also agreed to modify its privacy policy and implement protocols intended to align future data practices with disclosures to consumers. These obligations were part of a negotiated resolution; they are not a finding that every listed data field was unlawfully collected.

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Can consumers still file a claim?

No. The reported claim deadline was July 20, 2017, and the court granted final approval on August 15, 2017. The claims process has closed; reports said checks were mailed in October 2017. The settlement-status page records the deadline and approval information. The settlement is historical, not an open compensation program.

What can connected-device users learn from the case?

The practical privacy question is not simply whether a device connects by Bluetooth or offers remote control. App and cloud features may involve information beyond the device’s immediate settings. Before connecting an intimate or other sensitive device, check its current privacy notice and app settings for concrete answers:

  • Is an account required, and what information is tied to it?
  • What device telemetry is collected, and is it shared with analytics or advertising providers?
  • Can remote-control or cloud features be disabled while retaining basic device use?
  • How is information protected in transit and at rest, and how long is it retained?
  • Can you delete the account and associated device data, and does the policy explain exceptions?

Those questions help distinguish a manufacturer’s own data collection from the separate risk of unauthorized access. This case does not establish the current privacy practices, product lineup, or security of any present-day We-Vibe product.

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