These sex toy customers are happy, but not for the reason you might think.

A sex toy company has agreed to pay customers up to $10,000 each in a class action lawsuit it settled in federal court last week after its connected vibrators got a little too close for comfort. An Illinois woman sued the parent company, Standard Innovation, for secretly collecting intimate details about its customers’ use of the We-Vibe through the accompanying app, which allows users to control the device remotely and customize its features.

According to the lawsuit filed in the North District of Illinois Eastern Division District Court, the We-Connect app was transmitting information including dates and times of use as well as vibration mode and pattern to the company’s servers along with personally-identifiable email addresses without notifying customers.

Standard Innovation, which is based in Ontario, Canada, will pay $4 million Canadian dollars ($2.9 million) and is now required to collect only non-identifiable information in aggregate form and inform customers it is doing so. Customers who used the app to control the We-Vibe device before Sept. 26, 2016 are eligible for up to $10,000 in fees whereas those who simply bought a device are eligible to receive up to $199 each.

Standard Innovation told MarketWatch in a statement it is “pleased to have reached a fair and reasonable settlement in this matter”:

“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 enhance the app. With this settlement, Standard Innovation can continue to focus on making new, innovative products for our customers.”

The court case highlighted how technology is woven into our lives, with devices from fitness trackers and water bottles to smart refrigerators — and more — capable of logging data on our activities. Now, with even the most personal devices app-enabled, companies and consumers are facing new questions about privacy practices.

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OhMiBod, another sex-toy company that offers connected devices, previously suspended all data collection following the law suit to reexamine its policies. Co-founder Brian Dunham said OhMiBod has never transmitted data connected to personally-identifiable information like email addresses or names, as We-Vibe has been accused of doing, but the lawsuit still prompted the company to be proactive about its policies.

“We have already had the internal discussion to not transmit anything so that users feel comfortable,” he said. “As we make changes to the app, if we decide to reinstate those types of features then we do so on an explicitly opt-in basis within the app so the users really understand what we are collecting and what it is used for.”

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The company previously allowed people to use the app without sharing any user information, or to register to receive limited, unidentifiable data on location and use of devices (the location was user-provided and not validated through the actual device location). They used this information internally to analyze user habits and demographics and improve user experience, for example collecting information if the app was used by someone in California to connect with someone in Europe.

Smart sex toys have been touted for their use in long-distance relationships, with the ability to be controlled remotely and allow users to share intimate moments across the web. OhMiBod products can even sync with the heartbeat of a user (or a user’s partner) to bring a human connection to the device. Connected apps also allow users to create custom vibrations or make their devices buzz to music they choose.

The information collected from OhMiBod devices was not provided to third parties for marketing or other purposes, Dunham said. He said companies developing connected toys have a responsibility to provide a clear description of what user data is being collected and shared, and the Standard Innovation lawsuit underscores that obligation.

“I think this is actually good for the industry, because if people aren’t comfortable with what companies are doing with their data and the level of transparency, there’s going to be a much slower adoption rate of these devices,” he said. “This industry is fairly nascent, and as we go through and develop, and customers highlight concerns, manufacturers will learn from those concerns to make a better user experience.”

In a statement, Standard Innovation said it is updating its privacy practices in light of the suit, bringing on external privacy and security experts to review policies and make suggestions. Later this month, the company plans to update the app to better communicate its policies and give users a more clear ability to opt out.

“There’s been no allegation that any of our customers’ data has been compromised,” the company said in a statement. “However, given the intimate nature of our products, the privacy and security of our customers’ data is of utmost importance to our company. Accordingly, we take concerns about customer privacy and our data practices seriously.”

Michael Kaiser, Executive Director of the National Cyber Security Alliance, said as more personal devices become connected, consumers need to be more vigilant about security. This includes reading privacy policies to determine what information is collected, who it is shared with, and where it is stored. With intimate devices, whether it is home security cameras or connected sex toys, the stakes are much higher than before.

“It is more ‘the internet of me’ than the Internet of Things, and exactly what they collect and how they use it in many devices is not transparent at this point,” Kaiser said. “This particular case represents the kind of device people are always using behind closed doors, where the level of privacy is expected to be very high. My hope is people will pay close attention to these things when they connect their homes and have a better understanding and awareness of privacy and security issues.”

While companies straighten out privacy policies, consumers interested in purchasing connected devices should use common-sense privacy practices like reading terms and conditions before opting in and avoiding using personal emails to sign up for accounts like these. Or, they can just purchase an old-fashioned device — as Kaiser notes, maybe not everything needs to be connected.

“Surrounding Internet of Things devices, we usually tell people, ‘stop, think, connect,” but with these devices specifically, I think it is really ‘stop, think, should I connect?’” he said. “Customers should really evaluate the benefits. There is great opportunity…but it doesn’t come without some risk, and they should be well aware of those risks.”

Customers interested in filing a claim should keep an eye on the settlement website, which is supposed to be up and running no later than March 21. They can contact the firm representing the plaintiff for more information.