Poshmark Class Action Lawsuit, Privacy Tracking Allegations Filed, No Settlement Yet But Mass Arbitration Available
A class action lawsuit filed in August 2025 accuses Poshmark of secretly installing tracking software that collects users’ personal data without consent, but no settlement exists yet. However, attorneys are gathering affected Poshmark users for mass arbitration—a separate legal process that could provide compensation.
What Is the Poshmark Class Action Lawsuit About?
The lawsuit alleges Poshmark violated California privacy laws by installing tracking technology from Google DoubleClick, Microsoft Bing Ads, and Taboola without user consent. Filed August 15, 2025, in California Northern District Court (Case No. 3:25-cv-06917), the case claims Poshmark collected IP addresses, device information, and browsing behavior violating the California Invasion of Privacy Act (CIPA).
Nathan & Associates and the Law Offices of Ross Cornell represent plaintiff Timothy Arnold. The lawsuit contends Poshmark transmitted user data to third parties for targeted advertising without proper consent, even from users who never made purchases.
Allegations and Case Status
The complaint alleges Poshmark embedded third-party tracking pixels—code monitoring user activity—throughout its website and app. These tools allegedly collected information about items users searched, browsed, and purchased, plus behavioral data about platform interactions, then shared it with Google’s DoubleClick, Microsoft’s Bing Ads, and Taboola.
Data transmission allegedly occurred automatically whenever users accessed Poshmark, regardless of creating accounts, making purchases, or browsing. CIPA prohibits unauthorized interception of electronic communications. Violations can result in statutory damages up to $5,000 per violation.
As of January 2026, the case remains in early litigation. No settlement exists, no class is certified, and no claim process is available. Poshmark, owned by South Korean company Naver Corporation since 2023, hasn’t publicly responded. The lawsuit follows similar 2024-2025 cases against Etsy, David’s Bridal, and other retailers alleging comparable tracking.
Mass Arbitration Alternative
Separately, attorneys working with ClassAction.org are pursuing mass arbitration against Poshmark. Mass arbitration—where hundreds or thousands of consumers file individual arbitration claims against the same company simultaneously—has emerged as a class action alternative.
This investigation focuses on whether Poshmark shares data with PayPal regardless of whether users use PayPal. Unlike class actions proceeding through courts, mass arbitration occurs when companies’ terms contain arbitration clauses. Mass arbitration can overwhelm companies with thousands of simultaneous claims, creating settlement pressure.
What You Must Know
No Settlement Exists
As of January 2026, there is no Poshmark settlement, no approved amount, no claim administrator, and no filing deadline. The August 2025 lawsuit is in preliminary stages. Any communications claiming you can file claims or receive payments are fraudulent.
If the case settles, eligible class members would receive notice by mail or email with claim instructions. Settlement administrators provide claim forms on official websites with deadlines several months after approval.
Mass Arbitration vs. Class Actions
Mass arbitration requires signing up individually, unlike class actions where you’re automatically included if eligible. Signing up typically costs nothing—attorneys work on contingency. However, you agree to pursue claims through private arbitration and may waive class action rights.
Mass arbitration can resolve faster than class actions, which often take years. Individual arbitration awards vary, whereas class settlements provide standardized payments.
2025 Privacy Enforcement Trends
The lawsuit arrives amid surging California privacy enforcement. In 2025, major settlements included Kaiser Permanente ($46-47.5M), Cash App ($15M), and healthcare systems ($5-9M each for Meta Pixel tracking).
California’s SB 690, which would modify CIPA sections plaintiffs use against advertising technology, became a “two-year bill,” pushing potential enactment to 2026. Recent federal decisions require plaintiffs to allege specific facts showing their own information was collected, not general allegations.
What to Do Next
Verify If You’re Affected
If you used Poshmark’s website or app—to buy, sell, or browse—you could be affected. The lawsuit doesn’t specify exact dates for alleged data collection.
Keep documentation including account creation emails, purchase confirmations, or app download receipts. This information could be relevant if a settlement occurs.
Monitor Developments
Track Arnold v. Poshmark (No. 3:25-cv-06917) through PACER at https://www.pacer.gov. Settlement administrators post official information on dedicated websites—never provide information to unofficial sources.
Review similar privacy cases including the Kaiser class action lawsuit and Facebook class action lawsuit payout to understand data privacy settlements.
Consider Mass Arbitration
If interested in pursuing compensation through mass arbitration, visit ClassAction.org’s online shopping investigations page. Read terms carefully—participating may affect class action rights.
Mass arbitration signup typically costs nothing. Legitimate programs don’t require upfront payments—attorneys are compensated from eventual recovery.
When to Consult an Attorney
Consider speaking with a privacy attorney if you suffered concrete damages from Poshmark’s alleged tracking, such as identity theft or documented financial harm.
If uncertain whether to opt out of a future settlement, consult with an attorney specializing in consumer privacy law. Many offer free consultations.
Frequently Asked Questions
How much money can I get from the Poshmark settlement?
No settlement exists as of January 2026. If a settlement is eventually reached, payment amounts depend on the total settlement fund, number of valid claims, and documented damages. Similar 2025 privacy tracking settlements ranged from $20-75 per claimant, though amounts vary based on case specifics.
What documents do I need to file a claim?
No claim process exists yet. If a future settlement occurs, you would likely need proof of Poshmark account ownership, such as account creation emails, purchase confirmations, or shipping notifications. Some settlements accept claims without documentation if you provide accurate account information.
When is the deadline to submit my claim?
There is no claim deadline because no settlement exists. If the lawsuit eventually settles, the settlement administrator would announce claim deadlines, typically 60-120 days after settlement approval. Official notice would be sent to class members by mail or email.
Am I eligible if I only bought items on Poshmark?
Based on allegations that tracking occurred regardless of purchase activity, buyers, sellers, and browsers could potentially be eligible for any future settlement. Final eligibility criteria would be determined by settlement terms if reached.
How long until I receive my settlement payment?
No payments are available currently. In typical e-commerce class actions, payments begin 6-12 months after final settlement approval and appeals resolution. The Poshmark lawsuit was only filed in August 2025, meaning any settlement—if one occurs—is likely years away.
Can I join both the class action and mass arbitration?
Typically no. Participating in mass arbitration usually requires waiving class action rights. Read terms carefully before signing up for mass arbitration to understand how it affects your rights. Some programs allow opt-out within certain time periods.
What if Poshmark’s terms require arbitration?
Many companies include arbitration clauses in terms of service. However, the class action may argue these clauses are unenforceable or don’t apply to statutory privacy violations. Courts handle these issues during litigation. If arbitration clauses are enforced, it could compel the case into mass arbitration.
Last Updated: January 15, 2026
Disclaimer: This article provides general information about the Poshmark privacy lawsuit for educational purposes only and does not constitute legal advice. For specific questions about your rights or potential claims, consult with a qualified attorney.
Monitor case developments and verify your eligibility if a settlement is reached. Stay informed about official settlement announcements through legitimate legal channels.
Stay informed, stay protected. — AllAboutLawyer.com
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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