Lawsuit Filed Against Shopify Over Alleged Smartphone Tracking Activities
Shopify Faces Revived Class-Action Lawsuit over Phone Tracking Allegations in California
Technology company Shopify finds itself embroiled in a legal battle once again, following the revival of a class-action lawsuit that was initially dismissed. The renewed dispute centers on claims that Shopify secretly tracked the phones of California shoppers during online purchases, without obtaining user consent.
The lawsuit was initiated by Brandon Briskin, a California resident, who alleged that Shopify implanted tracking tools on his iPhone while he purchased items from a website that utilized Shopify to manage its online store. Briskin asserted that this unauthorized surveillance resulted in the creation of a customer profile, which was then sold to other businesses for their benefit.
If successful, the class-action lawsuit could impact numerous other individuals who might have experienced similar data breaches. The legal contention revolves around whether Shopify, a Canadian-based corporation, can be subjected to trial in California despite not being headquartered there.
Previously, both a lower court and a smaller panel from the 9th U.S. Circuit Court of Appeals sided with Shopify, dismissing the case. However, when the entire court re-evaluated the case, their decision reversed. The judges concluded that Shopify had conducted substantial business in California, making it accountable there for the unauthorized phone tracking. By a 10-1 vote, the court determined that Shopify's deliberate placement of tracking tools on California shoppers' phones and subsequent utilization of the data for corporate advantage was not a random or accidental occurrence but a strategic decision targeting California consumers.
Several states, including 30 states and Washington, D.C., have voiced support for Briskin, contending that domestic jurisdictions should be permitted to safeguard their residents from companies that sell to them or collect their data—regardless of the companies' locations. On the other hand, the U.S. Chamber of Commerce advocates for Shopify, expressing concerns that such litigation could negatively affect companies offering behind-the-scenes internet services, as they might face lawsuits based on their software's usage in various states despite not engaging in direct activities there.
One judge differed from the majority, cautioning that this ruling could potentially open the door for lawsuits in any state where shoppers happen to be located. She referred to the phone tracking decision as a "traveling cookie rule," suggesting it grants excessive power to litigants due to software following them across state lines.
Despite the ongoing legal proceedings, the most recent decision compels Shopify to address the allegations in a California court. This development serves as a significant warning to other tech companies, signifying that they may still be held responsible for the actions of their software in regions like California, regardless of their location.
Sources:1. "Shopify Faces Revised Data Privacy Class Action Lawsuit"2. "Shopify faces reviewed data privacy lawsuit in U.S."3. "e-commerce platforms and the expanding reach of personal jurisdiction"4. "California federal court to consider class-action allegations against Shopify"
- The recent revival of a class-action lawsuit against Shopify highlights the importance of data privacy in data-and-cloud-computing, particularly regarding the tracking of users' phones without consent.
- The ongoing legal battle between Shopify and California residents over phone tracking allegations underscores the interplay between technology, policy-and-legislation, and politics, as Congress and states consider additional protections for consumers' data privacy.
- The general news regarding the renewed lawsuit against Shopify, resulting from their alleged unauthorized phone tracking of California shoppers, serves as a wake-up call for tech companies to ensure they comply with data privacy regulations in all relevant jurisdictions, particularly for states like California that are leading the charge in this area.
