Court: Minors Must Arbitrate Data Privacy Claims Against Roku
A federal judge ruled that minors must arbitrate privacy claims against Roku based on their parents' consent.
Why it matters: This precedent signals to corporate counsel and legal ops that minors may be bound by arbitration clauses when parents accept terms of service, impacting risk and compliance strategy for companies collecting data from underage users.
- A.A. et al. v. Roku involves six minors alleging Roku illegally collected and used their personal data.
- The court compelled arbitration, citing parental acceptance of Roku's terms—even though children never signed.
- Roku terms require users to be at least 18 years old and allow a 30-day arbitration opt-out, unused by plaintiffs' guardians.
- State attorneys general in Michigan and Florida have also sued Roku over children's data privacy issues.
In A.A. et al. v. Roku, Inc., six minor children, represented by their guardians, claimed that Roku unlawfully gathered and exploited their personal information—including voice recordings and browsing histories—to target advertisements. The plaintiffs asserted violations of federal and state privacy laws.
- Roku moved to compel arbitration, arguing parental acceptance of its terms bound the minors to arbitrate their claims. The Northern District of California agreed, finding it "equitable to bind the children to the arbitration obligation their guardians accepted."
- The court applied the doctrine of equitable estoppel, which can bind non-signatories—here, minors—to arbitration agreements where a direct relationship exists with a signatory, such as their legal guardians.
- Notably, Roku's terms, which require account holders to be 18 or older, include a 30-day opt-out of arbitration—an option the guardians did not exercise.
An attorney for the children had argued there was "no evidence that these minor plaintiffs ever agreed to arbitrate," yet the court determined the parental agreement sufficed.
The broader context includes ongoing scrutiny of children's privacy, with the Michigan and Florida Attorneys General separately pursuing claims that Roku violated children's data privacy laws by collecting and selling underage users’ data without proper notice or parental approval.
- The ruling sets a significant precedent on enforcing arbitration clauses for minors, highlighting risks for companies managing children’s data and reinforcing the importance of precise terms of service and opt-out procedures.
By the numbers:
- 6 — Number of minor children plaintiffs in the Roku lawsuit
- 30 days — Opt-out period for arbitration in Roku's terms, not used by any guardian
- 2025 — Year Michigan and Florida Attorneys General sued Roku over children’s data
Yes, but: Details on whether an appeal is planned are not available.