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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Technology

Technology

Questions Over Privacy Causes Sex Toy Maker $3.75 Million in Settlement

Standard Innovation Corp, an Ottawa-based marital aid maker, recently settled a lawsuit with two women for $3.75 million. The women’s claims were against the way the toy maker handles the type of personal data which the products are capable of generating.

The women filed the lawsuit last fall in September. In an Illinois court, they brought their claims against Standard Innovation Corp who makes the popular sex toy the We-Vibe. The newer version of the vibrating toy, called the We-Vibe Rave has Bluetooth and WiFi options through and app called We-Connect. The app allows users and their partners to change the intensity settings of the toy’s vibrations and even share private videos and messages using the internet.

The lawsuit, which was filed on the 2nd of September, was filed on the behalf of two women who are both We-Vibe users. One woman was identified as N.P. and the other as P.S. Both users claim that Standard Innovation Corp. did very little to explain the depths of use of the information collected through We-Connect and the devices. We-Vibe and We-Vibe Rave owners were deeply worried that their most intimate conversations were being exposed to the company.

Both N.P. and P.S. sought a certification as a class action suit and wanted the court to present the case to a jury. Their complaints stressed the fact that Standard Innovation Corp. displayed a “wholesale disregard” for the privacy of its users which in turn violated dozens of U.S. laws.

As a result of the lawsuit the company agreed to pay $3.75 million (US) in order to prevent any further litigation. Yet nearly 300,000 other report using the devices and nearly 100,000 are We-Connect users. In order to compensate those people, Standard Innovation Corp. put aside 75,000 for those who use internet connected toys and $3 million for those who are We-Connect users.

Aside from paying it users compensation, the company spokesperson, Denny Alexander, stated that Standard Innovation has since corrected its privacy policy so that requirements for users to put in their names, email, and other personal information into the We-Connect app have been removed.

Customers have also been given the option to opt out of sharing anonymous data. The privacy policy has also been re-written to make it simpler for customers to understand how data is being used and what type of data is collected by the company.

Currently, spanning across the ever growing internet, there are 6.4 billion devices sharing information. Those devices range from coffee makers to solar panels and sex toys to watches. The litigation against Standard Innovation Corp. brought up the steadily increasing issue of devices that are capable of gaining personal information, storing that information, and potentially sharing what has been gained. The number of devices that the internet encompasses is said to be increased by 20.8 billion which doesn’t include smart phones or tablets.

Alexander made a final statement regarding the lawsuit and its results saying,

“We are pleased to have reached a fair and reasonable settlement. At Standard Innovation we take customer privacy and data security seriously. We have enhanced our privacy notice, increased app security, provided customers more choice in the data they share, and we continue to work with leading privacy and security experts to improve the app. With this settlement, Standard Innovation can continue to focus on making new, innovative products for our customers.”


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