Tag Archives: Class Action

Massachusetts Court Dismisses ZIP Code Suit for Failure to Allege a Cognizable Injury

On January 6, 2012, the United States District Court for the District of Massachusetts granted Michaels Stores, Inc.’s (“Michaels”) a motion to dismiss against a customer-plaintiff who alleged that Michaels’ in-store information collection practices violated Massachusetts law. Although the court ruled in Michaels’ favor, it found that customer ZIP codes do constitute personal information under Massachusetts state law when collected in the context of a credit card transaction. The plaintiff’s class action complaint alleged that “Michaels illegally requested customers’ ZIP codes when processing their credit card transactions in violation of” Massachusetts General Laws Chapter 93, Section 105(a) (“Section 105(a)”). Specifically, Section 105(a) states that “[n]o person, firm, partnership, corporation or other business entity that accepts a credit card for a business transaction shall write, cause to be written or require that a credit card holder write personal identification information, not required by the credit card issuer, on the credit card transaction form.”

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Netflix Litigation Ordered to Mediation as House Passes VPPA Amendment

On December 1, 2011, a consolidated litigation against Netflix was ordered to private mediation pursuant to an agreement between the parties. As we previously reported, the plaintiffs allege that Netflix’s practice of maintaining customer movie rental history and recommendations after their subscriptions are cancelled violates the federal Video Privacy Protection Act (“VPPA”). In August 2011, several similar cases against Netflix were consolidated by a federal court in California.

News of the mediation order comes as a significant amendment to the VPPA awaits Senate approval. On December 6, 2011, the House of Representatives passed House Bill 2471 (“H.B. 2471”), which would allow video tape service providers to obtain consumers’ informed, written consent to disclose their personally identifiable information “[i]n advance for a set period of time or until consent is withdrawn.” H.B. 2471 also provides that “informed written consent” may be obtained electronically over the Internet. As we reported earlier this year, concerns regarding potential VPPA violations prompted Netflix to delay the U.S. launch of an integrated service with Facebook that would allow subscribers to share their television and movie viewing information. In July 2011, Netflix’s CEO criticized the VPPA as being “ambiguous” and “poorly drafted.” Discussing H.B. 2471 on the Netflix Blog, the company called on its customers to email Congress “to urge them to pass this modernizing legislation.”

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Court Dismisses Facebook “Friend Finder” Lawsuit

On October 27, 2011, the United States District Court for the Northern District of California dismissed claims that Facebook misappropriated users’ names and likenesses in promoting its “Friend Finder” feature. Friend Finder identifies potential “friends” for a Facebook user by matching his or her email contacts with users already registered with Facebook, then presenting the user with friend suggestions. Facebook promoted the feature by displaying the names and profile photos of current friends as examples of users who had found friends with Friend Finder.

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New Jersey Courts Issue Conflicting Rulings in ZIP Code Collection Cases

Last month, two New Jersey judges issued opposing decisions in class action lawsuits regarding merchants’ point-of-sale ZIP code collection practices. The conflicting orders leave unanswered the question of whether New Jersey retailers are prohibited from requiring and recording customers’ ZIP codes at the point of sale during credit card transactions.

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Seventh Circuit Finds in Favor of Resellers in DPPA Suit

On September 28, 2011, a federal court in Illinois held that West Publishing Company (“West”) had not violated the Driver’s Privacy Protection Act (“DPPA”) by reselling driver’s license information obtained from state DMVs.  The court held that (1) the DPPA creates a federal private right of action permitting individuals like the plaintiffs to bring their class action suit, but (2) the lower court’s dismissal for failure to state a claim was proper.

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Online Tracking Practices Face Increasing Scrutiny

Over the past several weeks, online tracking practices involving the use of Flash cookies and ETags have been the subject of new research studies, class action lawsuits and significant media attention.

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Netflix Backs Amendment to Video Privacy Protection Act

On July 25, 2011, Netflix stated that it will hold off on the launch of its Facebook integration in the U.S. due to legal issues related to the Video Privacy Protection Act (“VPPA”).  The new Facebook feature would allow Netflix subscribers to share their movie viewing information with friends online.  Netflix indicated in its second quarter shareholder letter that it supports House Bill 2471 (“H.B. 2471”), a proposed bipartisan amendment to the VPPA intended to clarify the consent requirement for sharing consumer video viewing information.  The letter states that “[u]nder the VPPA, it is ambiguous when and how a user can give permission for his or her video viewing data to be shared” and that the VPPA “discourages us from launching our Facebook integration domestically.”  As a result, the company plans to limit the campaign to Canada and Latin America until questions concerning the VPPA are resolved. Continue reading…

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Class Action Suit Filed Against Cloud Service over Data Breach

A putative class action complaint filed on June 22, 2011, in the United States District Court for the Northern District of California alleges that the popular cloud-based storage provider Dropbox, Inc. failed to secure users’ private data or to notify the vast majority of them about a data breach.  According to the complaint, Dropbox announced in a blog post on its website that it had “introduced a bug” on June 19, 2011, which allowed users logged in to its system to log into other users’ accounts and access those users’ data stored on Dropbox.  The complaint further claims that Dropbox did not notify most, if not all, of its 25 million users that their information had been compromised.  The complaint defines the plaintiff class as all current or former Dropbox users as of June 19, 2011, whose accounts were breached. Continue reading…

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Senators Franken and Blumenthal Co-Sponsor Location Privacy Protection Act

On June 15, 2011, Senator Al Franken (D-MN) and Senator Richard Blumenthal (D-CT) introduced the Location Privacy Protection Act of 2011 (the “Act”).  As we reported previously, Senator Franken is chairman of the newly-created Senate subcommittee on Privacy, Technology and the Law.   In his press release, Senator Franken explained that the Act is designed to “close current loopholes in federal law” while giving customers the ability to learn about and prevent the collection of their location information.  The Act would apply only to non-government entities and would not impact law-enforcement activities.  At a May 10, 2011 hearing, both Google and Apple were questioned about their privacy practices, and Franken subsequently challenged them to require their application developers to adopt clear and understandable privacy policies.

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Class Action Lawsuit Filed Against Google for Tracking Android Users’ Location Data

On June 9, 2011, two plaintiffs filed a class action complaint against Google in the United States District Court for the Southern District of Florida.  The complaint alleges that Google’s Android phone “engaged in illegal tracking and recording of [p]laintiffs’ movements and locations … without their knowledge or consent” and that Google violated the Computer Fraud and Abuse Act and Florida statutory and common law by failing to inform Android users that their movements were being tracked and recorded through their phones.

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