The recent en banc ruling by the US Court of Appeals for the Ninth Circuit has significantly impacted the legal landscape for e-commerce platforms and online businesses. In a decision that reverses established precedents, the court determined that Shopify can be sued in California due to its use of web tracking technology to gather a California consumer’s location, device, and shopping history data. This decision, made in the context of the Briskin v. Shopify, Inc., broadens the application of specific personal jurisdiction in the Ninth Circuit.
The case originated when California resident Brandon Briskin alleged that Shopify violated his privacy rights by installing web tracking technologies on his iPhone without consent. Initially dismissed by a district court for lack of specific personal jurisdiction, the case was later revisited en banc by the Ninth Circuit, which ruled against Shopify. The court’s decision was guided by a three-part test that considered Shopify’s conduct directed at California, the connection of Briskin’s claims to this conduct, and the reasonableness of exercising jurisdiction over Shopify.
According to the ruling, Shopify’s actions were expressly aimed at California through the extraction and distribution of personal data. Crucially, the court held that the requirement of “express aiming” does not necessitate differential targeting specific to the forum state—a stance that departs from prior case law.
This ruling implies that e-commerce platforms can now potentially face legal action in any jurisdiction where their services are accessible, without needing physical presence or specific targeting of that jurisdiction. Consequently, companies must reassess their data collection, web tracking, and location data practices to minimize the risk of facing litigation in states like California, which have strong consumer privacy laws.
This decision is seen as a significant shift in how personal jurisdiction is established for online enterprises, affecting strategic legal considerations for companies that operate nationwide or globally. The Ninth Circuit’s ruling is expected to embolden plaintiffs to pursue privacy class actions in states perceived as plaintiff-friendly, thereby increasing the litigation risks for e-commerce platforms across the country. For those interested in a comprehensive review of this development, the full article is accessible here.