Mealey's Data Privacy
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July 13, 2023
Customer, McDonald’s: AI Voiceprint Class Lawsuit Dismissed With Prejudice
CHICAGO — McDonald’s Corp. and a customer who alleged in a putative class lawsuit that the franchisor violates the Illinois Biometric Information Privacy Act (BIPA) by collecting voiceprints to place drive-through orders filed a stipulation of dismissal on July 12 in a federal court in Illinois.
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July 13, 2023
7th Circuit: Patient Lacks Standing To Sue For Health Data Sharing With Google
CHICAGO — Affirming the dismissal of an Illinois man’s putative privacy and contractual class claims over a hospital’s health data-sharing agreement with Google LLC in conjunction with a joint artificial intelligence research venture, a Seventh Circuit U.S. Court of Appeals panel found that the one-time patient failed to plead any concrete harm to establish his standing to sue under Article III of the U.S. Constitution.
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July 13, 2023
Google Accused Of Stealing Data From Gmail Accounts To Train AI Chatbot
SAN FRANCISCO — Eight anonymous plaintiffs filed a putative class action accusing Alphabet Inc., Google LLC and their AI subsidiary of violating California’s unfair competition law (UCL), copyright law and privacy laws by “stealing everything ever created and shared on the internet by hundreds of millions of Americans,” including the plaintiffs’ private data contained in their private Google email accounts, to train their AI chatbot.
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July 13, 2023
Mesothelioma Plaintiff Opposes Blood Draw, Genetic Testing
LOS ANGELES — Plaintiffs in a mesothelioma case urged a California court to deny a motion seeking a blood draw for genetic testing, saying the court should reject the motion on procedural grounds and that the defendants overstate the role of a BAP1 genetic mutation.
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July 07, 2023
9th Circuit Finds Oregon’s Ban On Secret Recordings Violates 1st Amendment
PASADENA, Calif. — An Oregon law that prohibits the unannounced recording of most conversations is a content-based restriction on speech that runs afoul of the First Amendment to the U.S. Constitution, a Ninth Circuit U.S. Court of Appeals panel majority found, reversing a trial court’s dismissal of two media organizations’ claims of free speech violations and deeming the statute to be invalid on its face.
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July 06, 2023
Plaintiffs: Google’s Own AI Warns Against Its Health Data Practices
SAN JOSE, Calif. — Google LLC’s artificial intelligence supports the conclusion that websites governed by California or federal health privacy law should not use the company’s analytics platform, anonymous plaintiffs who claim that the company unlawfully tracked, collected and monetized private health information allege in a first amended complaint that includes claims under the California unfair competition law (UCL).
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July 03, 2023
Federal Judge Clears Way For Privacy Class Suit Against America’s Test Kitchen
BOSTON — A federal judge in Massachusetts on June 30 declined to compel arbitration of or dismiss a Video Privacy Protection Act (VPPA) putative class complaint accusing a recipe website of sharing subscribers’ data with a third party without consent, finding that the notice of an arbitration agreement was insufficient and the subscriber showed standing as well factual issues that must be resolved, deeming dismissal “inappropriate at this stage.”
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June 29, 2023
AI Chatbot Companies Accused Of Stealing Millions Of Users’ Data In Class Suit
SAN FRANCISCO — Sixteen anonymous plaintiffs on June 28 filed a putative class action against companies that created ChatGPT and other AI chatbots, including Microsoft Corp., accusing them of violating federal privacy laws and state consumer protection laws, including California’s unfair competition law (UCL), by collecting “sensitive information from millions of individuals” to train their chatbots.
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June 29, 2023
Panel Rejects Insurer’s Appeal In Subrogation Suit Arising From CIPA Settlement
SAN FRANCISCO — A California appeals panel on June 28 affirmed a lower court’s grant of summary judgment in favor of defendants in an insurer’s subrogation lawsuit seeking to recover defense and settlement costs that it paid in an underlying class action alleging its insured violated the California Invasion of Privacy Act (CIPA), concluding that the defendants had no indemnification obligation because the insured failed to give them control over the defense and settlement of the class action.
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June 26, 2023
Consolidated Class Suit Alleges Voice ID AI Software Violates Calif. Privacy Act
OAKLAND, Calif. — Three California citizens filed a consolidated class complaint in a federal court in their state accusing a software company of multiple privacy violations in connection with its artificial intelligence (AI) software that permits companies to authenticate customers’ identifies with their voice.
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June 22, 2023
Revised $23 Million Agreement In Google Referrer Header Privacy Row Initially OK’d
SAN JOSE, Calif. — Eight years after approving a previous settlement in a decade-old consolidated Stored Communications Act (SCA) class action against Google LLC, a California federal judge preliminarily approved a newly negotiated settlement that focuses on direct relief to consumers rather than to cy pres recipients, which had led to objections and a U.S. Supreme Court appeal of the first settlement.
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June 22, 2023
Insureds: Class Certification Merited For Contract Claim Over 2014 Data Breach
WASHINGTON, D.C. — In a reply brief supporting their renewed motion for class certification, plaintiff policyholders whose personally identifiable information (PII) was stolen in a 2014 data breach tell a District of Columbia federal court that their breach of contract claim against their insurer satisfies all class treatment requirements of Article III of the U.S. Constitution and Federal Rule of Civil Procedure 23(a).
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June 21, 2023
Dismissal Motion Hearing Date Set In Privacy, UCL Class Suit Over Meta’s Data Tracking
SAN FRANCISCO — Approving a stipulation by Meta Platforms Inc. and the plaintiffs who sued it for alleged violations of the Computer Fraud and Abuse Act (CFAA) and California’s unfair competition law (UCL), a California federal judge rescheduled a hearing for Meta’s dismissal motion for the third time, this time setting it for Aug. 17.
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June 20, 2023
Google, Device Users Request More Time To Finalize Location-Tracking Privacy Suit
SAN JOSE, Calif. — A month and a half after Google LLC and the lead plaintiffs in a putative privacy class action over purported location tracking of their devices announced that they had reached a settlement, the parties filed a joint statement informing a California federal court that finalization of the agreement “has taken longer than anticipated,” thus prompting them to ask the court for additional time to do so.
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June 19, 2023
Testers’ VPPA Allegation Over Folgers Website Dismissed For Lack Of Jurisdiction
SAN FRANCISCO — Two self-described privacy advocates and “testers” failed to establish that the website for Folgers Coffee is purposefully directed at California, a California federal judge concluded, granting a motion by Folgers’ owner The J.M. Smucker Co. to dismiss a putative class action under the Video Protection Privacy Act (VPPA) for lack of personal jurisdiction.
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June 19, 2023
Google, YouTube Users Reply To FTC’s Amicus Brief In Children’s Privacy Suit
SEATTLE — Responding to an amicus curiae brief filed by the Federal Trade Commission, Google LLC and a group of minor YouTube users reiterate their competing positions on the scope of the preemption clause of the Children’s Online Privacy Protection Act (COPPA) in the context of Google’s motion for rehearing by the Ninth Circuit U.S. Court of Appeals after a panel ruling that reinstated state law privacy and consumer class claims against the technology giant.
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June 19, 2023
Insurer Owes Coverage For BIPA Violation Claims Against Insured, Panel Affirms
CHICAGO — The Seventh Circuit U.S. Court of Appeals affirmed a lower federal court’s summary judgment ruling that a business liability insurer owes coverage for two underlying putative class actions alleging that the insured violated the Illinois Biometric Information Privacy Act (BIPA), agreeing with the lower court that the facial breadth of the catch-all provision in the violation-of-statues exclusion gives rise to an ambiguity in the insurance policy that must be construed in favor of the insured.
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June 15, 2023
Directors Want T-Mobile AI-Based Data Breach Securities Case Dismissed
WILMINGTON, Del. — Current and former company directors asked the Delaware Chancery Court to dismiss a derivative securities action claiming that T-Mobile US Inc.’s largest shareholder implemented a “hurriedly” enacted data mining plan designed to feed the owner’s machine learning and artificial intelligence platform, resulting in customer data breaches.
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June 15, 2023
Asbestos Expert’s Employer Seeks To Quash Study Subject Subpoena, Impose Sanctions
NEW YORK — Asbestos expert Jacqueline Moline’s employer on June 14 asked a court to quash a subpoena from a party to a suit, saying the information the defendant sought was already largely available and that production would violate health information privacy regulations and asking that the court impose sanctions.
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June 14, 2023
Vizio Tells 9th Circuit Its 4th Amended Complaint Is ‘More Than Sufficient’
SAN FRANCISCO — Responding to an insurer’s contention that its appeal “merely regurgitates the same failed arguments,” Vizio Inc. tells the Ninth Circuit U.S. Court of Appeals that the allegations in its fourth amended complaint are “more than sufficient” to permit it to proceed past the pleading stage in its lawsuit seeking coverage for an underlying $17 million settlement and defense costs arising from class claims alleging unauthorized collections of consumers’ television viewing data.
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June 13, 2023
Taco Bell Worker Seeks Reconsideration After Biometric Data Arbitration Order
EAST ST. LOUIS, Ill. — A Taco Bell employee who alleges in a putative class complaint in a federal court in Illinois that workers’ biometric data is collected, used and stored in violation of that state’s law moved for reconsideration or clarification after an arbitration motion was granted, arguing that the court should decide rather than stay a personal jurisdiction motion and clarify whether the defendants in the case may enforce an arbitration agreement under the applicable delegation clause.
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June 13, 2023
New York Woman Dismisses Class Suit Over Starbucks’ Biometric Data Collection
NEW YORK — A New York woman who filed a putative class complaint in a federal court in her state accusing Starbucks Corp. of violating New York City law by collecting and sharing biometric identifier information of all customers who enter the marketplace or lounge seating areas of the Starbucks-Amazon Go stores filed a notice of voluntary dismissal without prejudice.
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June 12, 2023
Amazon, FTC Settle Child Privacy Violations Suit For $25 Million
SEATTLE — The same day that the Federal Trade Commission filed a complaint in Washington federal court against Amazon.com Inc. and Amazon.com Services LLC (Amazon, collectively) for violations of federal child privacy and consumer laws, the commission also filed a consent motion for entry of a stipulated order by which the online retailer will, among other things, pay $25 million to settle the claims related to its Alexa digital assistant.
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June 09, 2023
$2.35M Dickey’s Barbecue Data Breach Class Settlement Granted Final Approval
DALLAS — A federal judge in Texas granted final approval of a $2.35 million nonreversionary settlement to be paid by Dickey’s Barbecue Restaurants Inc. to end several consolidated data breach class complaints.
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June 08, 2023
Supreme Court: Identity Theft Occurs When ID Use Is ‘At The Crux’ Of Criminal Act
WASHINGTON, D.C. — Violation of the federal aggravated identity theft statute happens when the unauthorized use of another person’s means of identification “is at the crux of what makes the conduct” at issue criminal, a U.S. Supreme Court majority ruled June 8, reversing a Fifth Circuit U.S. Court of Appeals’ ruling in the context of health care fraud and stressing that a broader interpretation of identity theft would transform “garden-variety overbilling” disputes that include the use of a patient’s identifying information into identity theft violations.