Author: Bassam F. Gergi

“Tester” Beware: California Wiretap and Pen Register Claims Challenging Website’s Third-Party Tracking Software Doomed by No Expectation of Privacy

In Rodriguez v. Autotrader.com, Inc., the District Court for the Central District of California dismissed, with prejudice, a class action lawsuit claiming that Autotrader.com violated the California Invasion of Privacy Act (CIPA) by allowing third-party tracking software to be installed on a website visitor’s browser before the visitor had any opportunity to consent to or decline the website’s privacy policy. The plaintiff’s complaint alleged that she was a “tester” – i.e., someone who seeks out legal violations and files lawsuits to ensure compliance – who visited the Autotrader.com website and made a search query purportedly containing confidential and private information. The complaint alleged that once a query is entered in the search bar, it is routed to unknown third parties and shared with other third parties like Google, Facebook, Pinterest, and various other advertising services. The complaint asserted that the use of the tracking technology violated California’s wiretapping and eavesdropping statute, CIPA § 631(a), as well as CIPA § 638.51, which prohibits the use of pen registers and trace devices. In January 2025, the district court dismissed the plaintiff’s CIPA § 631 claims without prejudice for lack of standing because the complaint merely alleged that the plaintiff made a search query containing confidential and private information but “fail[ed] to describe the contents of her query.”...

Flawed Theory: District Court Refuses to Dismiss Video Privacy Claim Challenging Use of Meta Pixel Web Tracking Technology

In Lee v. Springer Nature America, Inc., Judge Lewis J. Liman in the Southern District of New York held that a longtime subscriber to Scientific American plausibly alleged, on behalf of a putative class, that the website violated the Video Privacy Protection Act of 1988 (VPPA) based on its use of website tracking technology. The plaintiff, a 10-year subscriber, filed a complaint alleging that Scientific American unlawfully installed a code known as “Meta Pixel” on its website. The Meta Pixel supposedly transmitted information to Meta (formerly known as Facebook) about the subscriber’s use of the site (including Facebook ID, URLs accessed, and titles of videos viewed) in exchange for Meta providing advertising capabilities to Scientific American. Scientific American moved to dismiss the complaint on two grounds: first, that the plaintiff lacked standing because he had not suffered an injury, and second, that the plaintiff did not plead the elements required to state a claim under the VPPA. Judge Liman rejected both arguments. Citing the Second Circuit’s recent decision in Salazar v. National Basketball Association, Judge Liman held that the plaintiff’s allegations that he was a subscriber to Scientific American, that Scientific American disclosed to Meta the plaintiff’s personal information (Facebook ID, URLs accessed, and titles of videos viewed), and that Meta used this information without...

Dog Doesn’t Hunt: After Plaintiff Drops Federal Claim, U.S. Supreme Court Says Dog Food Case Must Be Remanded to State Court

The United States Supreme Court clarified this month in Royal Canin U.S.A., Inc. v. Wullschleger that when a plaintiff amends her complaint, following removal from state to federal court, to “cut[] out all her federal-law claims, federal-question jurisdiction dissolves” and the case must be remanded “to the state court where it started.” In Royal Canin, Anastasia Wullschleger purchased “a brand of dog food available only with a veterinarian’s prescription” and “sold at a premium price,” thinking that the dog food “contained medication not found in off-the-shelf products.” When Ms. Wullschleger learned that, despite its trappings, the dog food was just “ordinary dog food,” she brought suit in Missouri state court, filing a complaint that included asserted violations of the Federal Food, Drug, and Cosmetic Act (FDCA), as well as factually intertwined state-law claims. The defendant dog food company removed Ms. Wullschleger’s complaint from state to federal court based on federal-question jurisdiction resulting from the FDCA. In response, Ms. Wullschleger amended her complaint to remove any reference to the FDCA, and she asked the federal court to remand the case back to state court, arguing that there was no longer federal jurisdiction over the “amended, all-state-law complaint.” The district court denied Ms. Wullschleger’s petition. It reasoned that federal jurisdiction could not be unilaterally eliminated by a plaintiff’s...

Without Further Ado: Third Circuit Limits Discovery on Motions to Compel Arbitration

More than a decade after its seminal decision in Guidotti v. Legal Helpers Debt Resolution, L.L.C., the Third Circuit Court of Appeals has clarified that a plaintiff’s claims may be sent straight to arbitration, without any discovery, if there is no challenge to an arbitration agreement’s existence or validity. In Guidotti, the Third Circuit held that unless “it is apparent, based on ‘the face of a complaint, and documents relied upon in the complaint,’” that the “party’s claims ‘are subject to an enforceable arbitration clause,’” then a plaintiff should be given a chance to take “discovery on the question of arbitrability” before a motion to compel arbitration is decided under the summary-judgment standard of Rule 56 of the Federal Rules of Civil Procedure. Because most plaintiffs who file in court craft their complaints to try to avoid arbitration, the practical result of the Guidotti decision was that many cases went to discovery before a ruling on a defendant’s motion to compel – even when discovery was unlikely to impact the outcome. The Third Circuit’s recent published decision in Young v. Experian Information Solutions, Inc. limits the need for such pre-arbitration discovery. In Young, the plaintiff filed a putative class action complaint against Experian in the United States District Court for the District Court of New Jersey...