Observed Signal · Feb 25, 2026 · Legal Action · Source: State of Streaming · Impact: 3/5 · Sentiment: Negative
Roku Seeks Arbitration for Kids' Privacy Lawsuits
Roku has asked a court to compel private arbitration for class-action lawsuits alleging violations of children’s privacy protections, arguing that a February 2024 update to its dispute resolution terms — agreed to by parents — requires arbitration for claims brought on behalf of their children. The lawsuits follow a Michigan Attorney General complaint by Dana Nessel accusing Roku of collecting data on users under 13 and sharing viewing histories with third parties including Google and Meta. Private plaintiffs have also asserted separate claims under federal and state wiretap laws and California’s constitutional privacy protections. Roku says it strongly disagrees with the AG’s allegations. The dispute will test whether parental assent to a platform’s terms of service can force children’s privacy claims into arbitration and limit class-action exposure.
A courtroom decision on whether parents' consent to a platform's terms can force arbitration of children's statutory privacy claims could set precedent affecting CTV platforms' liability, consumer privacy enforcement, and litigation strategies across the ad-supported streaming ecosystem.
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Key Takeaways & Evidence Grounding
- Roku filed court papers arguing a February 2024 update to its dispute resolution terms requires arbitration for disputes, including those brought on behalf of children.
- Michigan Attorney General Dana Nessel accused Roku of collecting data from users under 13 and sharing viewing histories with Google and Meta.
- Private lawsuits against Roku include claims alleging violations of federal and state wiretap laws and a California constitutional right to privacy.
- Roku states it "strongly disagrees" with the Michigan AG's allegations; child plaintiffs have not yet filed a formal response to Roku's arbitration motion.
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