ABSOLUTE DISASTER: Facebook Pixel Usage Leads to Huge VPPA and ECPA Loss for the University of Phoenix and They Hired the Wrong Law Firm

Hire #biglaw expect a Big Loss.

While Troutman Amin, LLP keeps delivering impressive wins for its clients in cases involving emerging technologies and first-in-the-nation legal issues, big law firms keep falling on their faces.

Here’s another example.

The University of Phoenix is facing potentially crushing exposure in a class action lawsuit arising out of its use of Facebook Pixel and other common targeting pixels. The complaint alleges UoP used targeting pixels to track and market to students who viewed recorded online courses and other parts of the UoP website. The suit charges UoP violated two federal laws– the Video Privacy Protection Act and the Electronic Communications Privacy Act.

Now Troutman Amin, LLP helps clients navigate VPPA and ECPA issues all the time but UoP didn’t hire Troutman Amin, LLP– they hired a big law firm.

And the case is going SOMEWHERE.

In Dawson v. University of Phoenix, 2026 WL 92248 (N.D. Ill Jan. 13, 2026) the court held Plaintiff had alleged perfectly valid claims against UoP–at least as it came to its use of Facebook pixel–UoP is now facing MASSIVE damages as a result.

Under the VPPA the court held UoP constituted a “video tape service provider” because it supplied online recorded courses to its students in exchange for tuition. While UoP’s counsel argued–apparently poorly– that a university couldn’t qualify as a VTSP the court just walked through the words of the statute and had little problem concluding that providing video coursework for profit definitely met the definition.

The court also found UoP allegedly knowingly disclosed personal identifiable information regarding the plaintiff by transmitting facebook pixel information when plaintiff visited the UoP website. And since this was done without Plaintiff’s consent UoP is now facing massive penalties of $2,500.00 per violation!

Since VPPA carries a two year statute of limitations and given that UoP likely used facebook pixel for that entire timeframe, UoP is likely facing tens of millions in exposure on this claim– or more.

Just terrible. And it all could have been avoided with a cookie banner.

But we move on.

Because there is also the ECPA to consider and–yes– UoP’s #biglaw attorneys lost this piece too (and that’s wild.)

The ECPA is typically a dead statute in one-party consent states. This is so because if either party consents to the recording of a communication then there is no violation. But the Court in Dawson –perhaps cranky with poor advocacy by the defense– followed a minority position and allowed the case to proceed.

The Dawson court held: under § 2511(1)(a), persons whose communications are intercepted include those persons whose communications were intercepted by a third-party who was procured to do so by a defendant. Both the persons directly intercepting the communications and the persons who procured interception have violated the ECPA. It follows that the victim of the wiretap may sue any person or entity who engaged in the violation, including procuring interception. And here, Plaintiff has sufficiently alleged the University procured third-parties to intercept or endeavor to intercept Plaintiff’s electronic communications.

Most courts disagree and would not apply the “procurement” component in the context of civil litigation. So UoP usually wouldn’t be liable. But this court decided to hold otherwise.

And, yes, the court held Plaintiff’s allegations pixels fired when she visited websites constituted real time capture of communications in violation of the ECPA– probably none of which is correct, but that’s what happens when you hire #biglaw.

Violating the ECPA carries fines up to $1k per violation– but it also had criminal penalties of like $500k each (seriously) and UoP staff may end up in prison over this (I’m kidding, but not really.)

In short this is a train wreck of a dumpster fire for UoP and it never should have happened.

If you have questions about when you can use pixels and tracking software PLEASE get attorneys who know this stuff inside and out. And if you get sued in a VPPA or an ECPA class action DO YOUR RESEARCH and get yourself attorneys who are HIGHLY SKILLED in defending consumer class litigation in the data privacy space!

And yes Troutman Amin, LLP just raised its rates– and yes I am now the most expensive attorney in history based on my $6k hourly rate— but if $6k could save you $6MM (or $6BB) then you’d be a fool not to spend it.

Chat soon.