If you’ve ever marked a Venmo payment “Private” and assumed that note about rent, a loan, or a medical cost stayed between you and the other person, a new lawsuit argues you may have been wrong. A proposed class action filed in early September 2026 accuses PayPal — Venmo’s owner — of quietly feeding sensitive transaction details to third-party tracking companies regardless of the privacy setting you chose.
Here’s a plain-English breakdown of what the complaint alleges, what’s actually been proven (spoiler: nothing yet), and the concrete steps you can take right now to tighten your Venmo privacy.
What the lawsuit actually alleges
The case, Borquez, et al. v. PayPal, Inc. d/b/a Venmo (No. 5:26-cv-9340), was filed on September 1, 2026 in federal court in California. Four named Venmo users brought it as a proposed class action on behalf of a much larger group of users.
The core allegation: PayPal embedded tracking technology from two data firms — mParticle Inc. (a “customer data platform” that builds persistent advertising profiles) and Kochava Inc. (a mobile attribution company that also operates as a data broker) — inside the Venmo app. According to the complaint, this technology allegedly intercepted and transmitted:
- The sender’s full name, email address, and phone number
- The dollar amount paid
- The identity of the recipient
- The contents of the transaction note (the little memo or emoji you add)
The plaintiffs claim these transmissions fired “invisibly” in the background and happened no matter which privacy setting a user picked — including transactions marked “Private.” They further allege the data wasn’t anonymized or aggregated, and that PayPal “chose to install the Tracking Technology, chose which screens and events it would fire on, and chose which data fields it would transmit.”
The suit points to PayPal’s own privacy representations — that Venmo doesn’t disclose personal information to third parties for marketing, and that only a “defined and narrow category” of public information is accessible through its APIs — as the gap between what was promised and what allegedly happened. The legal claims include the federal Electronic Communications Privacy Act, the California Invasion of Privacy Act, California’s Unfair Competition Law, and the California Comprehensive Computer Data Access and Fraud Act.
Important context: These are allegations. As of this writing no class has been certified, no court has ruled on the merits, and PayPal has not been found liable for anything. There is no settlement and no claim form to fill out — be wary of any site telling you to “claim your payout.”
Why mParticle and Kochava are named
Neither company is a household name, which is part of the concern. mParticle’s business is stitching together data points into durable customer profiles that advertisers can target. Kochava has drawn regulatory heat before: the Federal Trade Commission pursued it over the sale of sensitive consumer location data, a matter that was reported as settling in May 2026. That history is partly why privacy advocates reacted strongly to seeing it named alongside a payments app.
How to lock down Venmo tracking right now
You don’t need to wait for a court outcome to reduce what Venmo collects and shares. Work through these steps in order — the whole thing takes about ten minutes.
| # | Setting | Where to find it | What it does |
|---|---|---|---|
| 1 | Default Privacy → Private | Me tab → Settings → Privacy | Makes all future payments visible only to you |
| 2 | Past transactions → Change All to Private | Settings → Privacy → Past Transactions | Hides your entire history (permanent — can’t be undone) |
| 3 | Friends List → Private | Settings → Privacy → Friends List | Stops others from seeing who you connect with |
| 4 | Turn off contact syncing | Settings → Friends & Social | Stops Venmo from uploading your address book |
| 5 | Review connected apps / authorized accounts | Settings → Security / Connected accounts | Revokes third-party API access you no longer use |
| 6 | Limit device ad tracking | iOS: Settings → Privacy → Tracking. Android: Settings → Privacy → Ads | Blocks the app from tying activity to your ad ID |
Worked example 1 — the rent payer. Say you Venmo your roommate $1,450 every month with the note “rent.” If your default is Public, anyone can see a recurring $1,450 payment with a “rent” memo on a set date — a tidy map of your finances and address stability. Setting default to Private (step 1) hides future payments; running “Change All to Private” (step 2) scrubs the back catalog so a snoop can’t scroll your history.
Worked example 2 — the sensitive note. You send $60 to a friend with a note referencing a medical copay or a bar tab. Even “Private” between you two doesn’t change what the lawsuit alleges was shared with trackers — so the broader lesson is to keep notes vague (“thanks!” or a single emoji) and avoid typing anything in a memo you wouldn’t want attached to your name in a marketing database.
One permanent catch to know
Changing your default setting is not retroactive — it only affects future payments. The “Change All to Private” action is the one that cleans up your history, and per Venmo’s own help documentation it cannot be undone. It can take a few minutes to fully apply across older transactions. There’s no real downside for most users, but know it’s a one-way door.
Frequently Asked Questions
Is there a Venmo settlement I can claim money from?
No. As of now this is a newly filed lawsuit with unproven allegations — no class has been certified and no settlement exists. Any website offering a “Venmo payout claim form” tied to this case should be treated as a potential scam. Legitimate settlements are announced through court-approved notices, not random pop-ups or texts.
Does marking a transaction “Private” stop the alleged tracking?
According to the complaint, no — the plaintiffs allege data was transmitted to trackers regardless of the chosen privacy setting. That claim hasn’t been tested in court. Still, setting transactions to Private is worth doing because it genuinely controls what other Venmo users and the public can see in the app’s social feed.
Should I stop using Venmo entirely?
That’s a personal risk call. Venmo remains widely used and the allegations are unproven. If you’re uneasy, you can lock down the settings above, keep balances low, move sensitive or large transfers to a bank ACH or Zelle, and keep notes generic. Deleting the app doesn’t erase data already collected, but it stops future collection.
Can I ask PayPal to delete the data it has on me?
If you’re a California resident (and residents of several other states with privacy laws), you generally have the right to request access to, and deletion of, your personal data. Look for “Privacy” or “Your privacy choices” in Venmo’s settings or on PayPal’s website to submit a request. These rights exist independently of the lawsuit.
The bottom line
The September 2026 lawsuit is a serious allegation about the gap between a “Private” label and what actually happens behind the scenes — but it’s an allegation, not a verdict. You can’t control how the case resolves, and you can’t control what may already have been collected. What you can control is your settings going forward: switch to Private, scrub your history, cut contact syncing, and keep your notes boring. Ten minutes today beats finding your financial life in a marketing profile tomorrow.
WalletWisp is informational and educational only — not financial or legal advice. For questions about your specific situation or the lawsuit, consult a qualified professional.
