Crunchyroll Controversy: Unraveling the Class-Action Lawsuit and RightStuf Acquisition Fueling Anime Fans' Frustration
Crunchyroll, the leading anime streaming platform worldwide, has faced backlash from fans A class-action lawsuit was filed due to violations of the Video Privacy Protection Act The lawsuit was settled, and Right Stuf migrated its products to Crunchyroll
Crunchyroll, the largest anime streaming platform globally, is a go-to choice for fans worldwide. They provide a wide range of services, including anime streaming, merchandise purchase, and news updates. However, recent revelations have left fans disappointed and outraged regarding the company's actions.
In 2021, Crunchyroll made an announcement about acquiring the content libraries of Funimation and Wakanim, solidifying its position as the leading anime platform. Adding to its growth, in 2022, the streaming website also acquired anime retailer Right Stuf, allowing it to broaden its market reach.
What did Crunchyroll do that infuriated its users?
The anime streaming company violated United States' Video Privacy Protection Act; class action lawsuit ensued
Sony's website features the company's mascot (Image via Sony).
According to reports, Sony Pictures Entertainment and Crunchyroll have reached a settlement in a class action lawsuit on September 15, 2023, after losing the case to Salvador Beltran, Jr., Eli Gross, and other parties.
The streaming company, allegedly, violated the Video Privacy Protection Act of the United States by sharing its subscribers' personal information with third-party companies like Facebook and Adobe. Although both companies initially denied the accusation, they eventually settled to avoid further complications and expenses related to the lawsuit.
This caused outrage among fans, considering Crunchyroll's status as the largest anime platform in the world. Consequently, users worldwide may have had their data compromised. With even the most prominent anime streaming platform appearing untrustworthy, many fans began to believe that piracy was the only option to watch anime.
How was the lawsuit settled?
The company's mascot and her cat as seen in the website (Image via Sony)
Crunchyroll users in the United States who have registered, streamed, or used the website or application in the past are entitled to a US$30 payment as part of the settlement. However, eligible users are required to submit a claim form by December 12, 2023 in order to receive the payment.
According to online sources, many users reported receiving an email requesting them to complete a compensation form. Unfortunately, numerous users disregarded these emails, mistaking them for junk or spam. With the significant number of users who likely neglected the email, there is a strong likelihood that the company will not incur as much financial loss as initially anticipated.
Displayed on Sony's website, is the company's mascot (Image via Sony).
Additionally, it remains uncertain whether any financial implications will occur. It is important to acknowledge that there have been no reports indicating the monetary value received by the streaming platform for accessing users' personal data. Consequently, it is impossible to determine whether the company has incurred losses or gains as a result of the lawsuit.
While fans are furious, it's important to acknowledge that Crunchyroll isn't the sole company that has compromised its users' private information by selling it to third-party companies. Notably, even giants like Facebook have encountered similar allegations and have successfully regained the trust of their users.
The company's website showcases its adorable mascot and her charming cat (Image via Sony)
Right Stuf migrates all its products to Crunchyroll
Consequently, although the fanbase currently harbors some mistrust, it is highly likely that customers will persist in utilizing the company's services. This is primarily due to the company's successful monopolization of the Western market.
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On October 6th, it was announced that Right Stuf will be gradually discontinued by the streaming company. Effective October 10th, all products previously available on Right Stuf will be migrated to the Crunchyroll Store. In line with this transition, the company unveiled its plans to hold a sale that resembles the one offered by Right Stuf. Additionally, the company expressed its commitment to expanding its range of e-commerce offerings.
Furthermore, the acquisition of Right Stuf by Sony Pictures Entertainment will have no impact on the existing licenses and projects established by the e-commerce store. Nevertheless, fans have noted alterations made by Crunchyroll to Right Stuf's pre-order and backlog system, as well as the store's practice of storing customers' credit card details without request.
