Dapper Labs has agreed to pay $5 million to settle a class action lawsuit involving unauthorized tracking pixels embedded on its NFT platforms without user consent. The settlement affects millions of users who held accounts on Dapper Labs’ platforms—including NBA Top Shot, NFL All Day, Disney Pinnacle, UFC Strike, and La Liga Golazos—between June 15, 2020, and January 30, 2025. If you purchased, viewed, or traded NFTs on any of these platforms during this period, you may be eligible to file a claim for compensation. The lawsuit centers on Dapper Labs’ use of invisible tracking pixels from major technology companies like Meta, Google, Microsoft, Snapchat, Reddit, X (Twitter), and TikTok embedded on video purchase and viewing pages.
These pixels transmitted information about which videos users viewed to third-party companies without explicit consent, allegedly violating the Video Privacy Protection Act (VPPA). The VPPA is a federal law that protects user privacy when watching videos online, requiring companies to get clear permission before sharing viewing activity with outside companies. Under the settlement, class members will receive equal shares of the $5 million fund, with individual payments expected to be approximately $5.00 per valid claim. While this amount may seem modest, the settlement also includes requirements that Dapper Labs permanently disable these tracking pixels on video-related pages unless the company can demonstrate compliance with privacy laws. This injunctive relief is significant because it prevents future violations across all five platforms.
Table of Contents
- What Are Tracking Pixels and Why Did This Violation Matter?
- The Scope of Affected Platforms and User Base
- How Much Money Are Settlement Claimants Receiving?
- The Claims Process and Critical Deadlines
- Understanding the VPPA and Why It Protects Video Privacy
- What Happens to the Tracking Pixels After Settlement?
- The Broader Implications for NFT Platforms and Privacy Compliance
- Conclusion
What Are Tracking Pixels and Why Did This Violation Matter?
Tracking pixels are tiny, nearly invisible pieces of code embedded in websites and applications that monitor user behavior and transmit data to third parties. When you view a video on a website, a pixel from Facebook, Google, or another company can silently record that activity and send information back to that company’s servers. These pixels are commonly used for advertising and analytics, but they can also create privacy risks when users don’t know they’re being tracked. In the Dapper Labs case, these pixels were placed on pages where users purchased or viewed NFT videos. This is particularly sensitive because the VPPA specifically protects video viewing activity, treating it as private information.
For example, if you viewed a video of an NBA player performing a particular move before deciding whether to purchase that NFT, that viewing history was captured by Meta, Google, and other companies without your knowledge. The law recognizes that people may not want their video watching habits shared with tech companies that use this data for targeted advertising or other purposes. What made this violation especially concerning is that Dapper Labs didn’t just use one tracking pixel—the company embedded pixels from seven different tech companies simultaneously. This multiplied the privacy exposure. A user thinking they were simply browsing NFTs on a closed platform had their viewing activity shared with Facebook, Google, Microsoft, Snapchat, Reddit, Twitter, and TikTok. This kind of broad data sharing to competing tech companies is exactly what the VPPA was designed to prevent.
The Scope of Affected Platforms and User Base
The settlement covers five distinct platforms operated by dapper Labs, each with millions of users at various points during the violation period. NBA Top Shot was the flagship platform where users purchased, sold, and traded officially licensed NBA video clips as NFTs. NFL All Day followed a similar model with NFL video moments. Disney Pinnacle featured Disney-themed video NFTs. UFC Strike focused on mixed martial arts video moments. La Liga Golazos offered Spanish soccer video highlights.
Together, these platforms attracted millions of users during the NFT boom period between 2020 and 2024. The time period covered by the settlement—June 15, 2020, through January 30, 2025—spans the entire rise and fall of Dapper Labs’ NFT ecosystem. This nearly five-year window means that even users who participated early in NBA Top Shot’s explosive growth are eligible if they still held accounts when the settlement period ended. However, not all users will receive equal compensation; only those who submit valid claims will be eligible for payment, and the total fund will be divided equally among all valid claimants. A significant limitation of the settlement is that it only covers users with “active accounts” on these platforms during the covered period. Users who deleted their accounts before January 30, 2025, but still received the benefit of the platforms during the violation period, may struggle to prove they had active accounts at the time. If you used NBA Top Shot in 2021 but deleted your account in 2023, you’ll need documentation showing your account was active during that usage to file a claim.
How Much Money Are Settlement Claimants Receiving?
The total settlement amount of $5 million will be divided equally among all approved claimants, with individual payments capped at $5.00 per claim. This equal share distribution is more straightforward than settlements where different classes of people receive different amounts, but it also means the amount per person depends entirely on how many valid claims are submitted. If 500,000 people file claims, each person might receive around $10. If 1,000,000 people file claims, each person might receive around $5. Before any money reaches claimants, several deductions come out of the settlement fund. Attorneys’ fees will be capped at approximately $1.67 million—about one-third of the total settlement, which is standard for class action litigation.
Class representatives who served as the named plaintiffs in the lawsuit will receive incentive awards of $5,000 each for their participation and effort. These amounts are deducted from the $5 million before the remaining funds are divided among all eligible claimants, which further reduces the per-person payout. The $5.00 payment represents compensation for the privacy violation itself—the fact that your video viewing activity was shared without permission. This amount doesn’t reflect the value of your specific data or any financial harm you suffered; rather, it’s a statutory damages amount typical in VPPA cases. While $5 may seem small, the real benefit of this settlement is not the payment but the injunctive relief requiring Dapper Labs to stop the practice, preventing future violations. The monetary component acknowledges the violation occurred, while the requirement to remove tracking pixels addresses the root problem.
The Claims Process and Critical Deadlines
Filing a claim in this settlement is necessary if you want to receive any payment. The claims deadline is April 15, 2026, which means you must submit your claim before that date or lose your opportunity to participate in the settlement. The official settlement website, dappervppaclassactionsettlement.com, will have a claims portal where you can submit your information and verify your eligibility. You’ll typically need to provide proof of account ownership, such as an email address associated with your Dapper Labs account or transaction records. The settlement also allows class members to object to the settlement or exclude themselves from the class by the same April 15, 2026 deadline. If you object, you’re saying you believe the settlement terms are unfair and you want the option to pursue your own lawsuit against Dapper Labs.
If you exclude yourself, you’re opting out of the settlement entirely and giving up your right to receive payment but also giving up your right to participate in any future litigation. Most claimants should file a claim rather than object or exclude themselves, since the settlement has already been approved and the $5 payment is guaranteed if you meet the eligibility requirements. The final approval hearing is scheduled for April 15, 2026, in Mineola, New York. At this hearing, the judge will review the settlement one final time to ensure it’s fair, reasonable, and adequate. If the judge approves the settlement—which is likely given that preliminary approval was already granted on December 19, 2025—then the settlement becomes final and binding. This means that by filing a claim, you’re releasing Dapper Labs from any further liability related to the VPPA violation on these platforms.
Understanding the VPPA and Why It Protects Video Privacy
The Video Privacy Protection Act, passed in 1988, is a federal law that predates the internet. Originally created to protect video rental privacy—preventing companies from disclosing which movies you rented—the law has been applied to online video viewing. The VPPA requires video companies to get explicit written consent from users before disclosing personally identifiable information about their video viewing habits to third parties. Dapper Labs’ failure to obtain this consent is what triggered the lawsuit. What’s important to understand is that simply having tracking pixels on a website doesn’t automatically violate the VPPA; the violation occurs when those pixels collect information about video viewing specifically and transmit it to third parties without consent.
Dapper Labs could have used Google Analytics and other business analytics tools on other pages of its website without violating the VPPA, but tracking video purchases and views crosses into the territory the law protects. This distinction matters because it shows the violation was specific to sensitive video activity, not general website usage. One limitation of the settlement is that it applies only to the VPPA claim and only to the specific platforms named. If you believe Dapper Labs violated your privacy in other ways—through poor security practices, excessive data retention, or other means—those claims are not addressed by this settlement. The settlement is narrowly tailored to the tracking pixel violation on the five named platforms. Additionally, the settlement doesn’t include any admission of wrongdoing by Dapper Labs; the company settled while denying liability, which is common in class action settlements but means no formal acknowledgment of the violation exists.
What Happens to the Tracking Pixels After Settlement?
The most significant long-term impact of the settlement is the injunctive relief requiring Dapper Labs to disable all tracking pixels on pages capturing video titles and viewing activity. This means Dapper Labs must remove or deactivate the Meta Pixel, Google Pixel, Microsoft Pixel, Snapchat, Reddit, X, and TikTok pixels from any page that involves video NFTs. The company cannot simply hide the pixels or make them inactive temporarily; the settlement requires permanent removal unless Dapper Labs can demonstrate full compliance with the VPPA. This requirement creates a meaningful constraint on Dapper Labs’ business operations going forward.
The company will no longer be able to use these major tracking pixels for conversion tracking, audience building, or remarketing on video-related pages. For example, if a user views an NBA Top Shot video and then leaves without buying, Facebook and Google won’t be able to see that activity and show the user targeted ads later. This may impact Dapper Labs’ ability to market its NFT products effectively, especially if the NFT market ever recovers. However, the company can still use analytics tools that don’t involve third-party pixels, and it can continue using pixels on non-video pages.
The Broader Implications for NFT Platforms and Privacy Compliance
The Dapper Labs settlement serves as a warning to other NFT platforms and digital marketplaces about VPPA compliance. Many online platforms embed tracking pixels from Google, Meta, and other companies without carefully considering whether they’re tracking video viewing activity. The settlement demonstrates that the VPPA is enforceable and that companies can face multimillion-dollar liability for violations. Other platforms that have embedded similar pixels on video content pages should audit their practices immediately.
Looking forward, the settlement may impact how NFT platforms and other digital marketplaces approach analytics and advertising. Companies may need to implement stronger consent mechanisms before using tracking pixels on video content, such as explicit opt-in checkboxes or user agreements that specifically mention third-party pixel tracking. Alternatively, companies may shift toward first-party data collection methods that don’t involve third-party pixels, such as using their own analytics infrastructure. The settlement essentially raises the cost of non-compliance, making VPPA-compliant alternatives more attractive to companies that want to avoid similar lawsuits.
Conclusion
The Dapper Labs $5 million settlement provides compensation to users whose video viewing activity on NBA Top Shot and related platforms was tracked and shared without consent. While individual payments are modest—approximately $5 per valid claim—the real value of the settlement lies in the permanent requirement that Dapper Labs disable tracking pixels on its video platforms. If you held an active account on any of the covered platforms between June 15, 2020, and January 30, 2025, you should file a claim by April 15, 2026, to receive your share of the settlement fund.
To file your claim, visit dappervppaclassactionsettlement.com and follow the claims process. Have documentation ready proving you had an account on one or more of the covered platforms (NBA Top Shot, NFL All Day, Disney Pinnacle, UFC Strike, or La Liga Golazos) during the covered period. The deadline is firm—claims submitted after April 15, 2026, will not be accepted. Whether you receive $5 or more depends on how many other class members file claims, but the settlement’s real importance is ensuring that Dapper Labs and other platforms understand that privacy violations have consequences.