Roku Inc. issued a statement strongly disagreeing with a lawsuit filed by a private plaintiffs' law firm representing the Michigan Attorney General's office. The lawsuit alleges that Roku collects and monetizes personal data from children without proper consent, violating the Children's Online Privacy Protection Act (COPPA) and other privacy laws.
The complaint asserts that Roku's practices do not reflect how its services work or its efforts to protect viewer privacy. Roku stated its plan to challenge these inaccurate claims and demonstrate its commitment to trust and compliance, affirming it does not use or disclose children's personal information for targeted advertising or other prohibited purposes.
This legal challenge represents a significant regulatory risk for Roku, potentially leading to substantial fines, reputational damage, and mandated changes to its data collection and advertising practices. The outcome of this lawsuit could have material financial and operational implications for the company.
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