IoT Device Maker Settles Class Claims For $3.75 Million

In one of the first Internet of Things (IoT) class action settlements, the maker of a Bluetooth-enabled personal vibrator agreed to settle privacy class claims for $3.75 million.

The We-Vibe product allows a user to connect the product to a smartphone. The user can then control the device from the phone via Bluetooth connection. The We-Vibe also allows different users to communicate with each other through video chats and text messages, and by remotely controlling their partner's We-Vibe device in real-time. However, consumers must download the company's mobile application, or "app," to access these features. The class plaintiffs alleged that the company, through its app, collected a substantial amount of information about its customers and their usage habits without customer knowledge or consent. Such information purported to include (1) the date and time of each use, (2) the vibration intensity level selected by the user, (3) the vibration mode or pattern