The consumer protection lawyers at Tauler Smith LLP keep racking up victories for clients in data privacy lawsuits involving the California Invasion of Privacy Act (CIPA). The most recent success story garnered media coverage from Bloomberg Law on the firm win in a CIPA claim against Alex and Ani, the nationwide jewelry retailer. Alex and Ani was sued for allegedly sharing customers’ personal information with TikTok, and the company tried to get the case dismissed before trial. Now, a federal judge has ruled that the online privacy case can move forward because the plaintiff has standing to sue in federal court and sufficiently pleaded all the necessary elements of a trap and trace claim under California’s Trap and Trace Law.
For more information about Tauler Smith’s latest courtroom triumph, keep reading.
Major Media Coverage of Tauler Smith’s Latest Legal Victory
The Los Angeles data privacy lawyers at Tauler Smith LLP have a well-earned reputation for doing what is necessary to win cases for clients, and the firm’s class action lawsuit against Alex and Ani is no exception. That case, Hassid v. Alex and Ani LLC, was the subject of a recent article published by Bloomberg Law. The widely used legal research platform detailed how Tauler Smith successfully defeated a motion to dismiss the case:
“Online jewelry seller Alex and Ani LLC must face a proposed class action alleging that it collected and disclosed consumers’ information to TikTok Inc. without their consent in violation of California privacy law.”
“Lead plaintiff Milan Hassid had standing to sue in federal court and adequately pleaded the elements of a trap-and-trace claim under the California Invasion of Privacy Act, Judge Fernando M. Olguin of the US District Court for the Central District of California said Tuesday.”
Lawsuit: Jewelry Company Used “Fingerprinting” Technology to Collect Customer Data Without Consent
The consumer privacy class action against Alex and Ani was filed in the U.S. District Court for the Central District of California. According to the lawsuit, the Alex and Ani website utilized trap and trace software created by TikTok for the purpose of identifying site visitors. The TikTok Software allegedly relied on a process known as “fingerprinting” to collect consumer data about website visitors, including their device and browser information, geographic information, referral tracking, and URL tracking.
Significantly, the online tracking technology began tracking users the moment they landed on the Alex and Ani website, and it continued to collect information every time a user clicked a page on the site. Once a user’s personal data was sent to TikTok, it could then be matched with existing data that TikTok had already accumulated about hundreds of millions of Americans. Moreover, TikTok’s “Auto Advanced Matching” technology could be used to scan websites for additional personal information such as the user’s name, date of birth, and address. This deanonymization process meant that TikTok could isolate with certainty the identity of the person.
Federal Court: Class Action Lawsuit Against Alex and Ani in California Can Proceed
In its failed motion to dismiss the case before trial, Alex and Ani tried to argue that the plaintiff did not allege an injury that would establish standing to sue. The federal court disagreed: it ruled that the California consumer who filed the lawsuit sufficiently alleged that Alex and Ani collected his personal information with TikTok tracking software in violation of California consumers’ “historically recognized right to privacy.”
The defendant also attempted to get the lawsuit dismissed by arguing that the federal court did not have jurisdiction over a case involving California data privacy laws because Alex and Ani is not based out of California. The plaintiff’s attorneys with Tauler Smith LLP countered by showing that the jewelry company uses its website to target consumers in California and to make sales to consumers in California, which goes far beyond merely operating a passive website that happens to be accessible to people nationwide. Therefore, said the plaintiff’s lawyers, Alex and Ani can be sued under California law. The court agreed.
Finally, the defendant tried to get the case dismissed by arguing that the digital tracking tools allegedly used on its website do not qualify as a “trap and trace device” as defined by the California Invasion of Privacy Act (CIPA). The plaintiff countered by pointing to the legal definition of a trap and trace device: “a device or process that captures the incoming electronic or other impulses that identify the originating number or other dialing, routing, addressing, or signaling information reasonably likely to identify the source.” The TikTok Software installed on the Alex and Ani website is a trap & trace device, said the plaintiff, because it identified customers, gathered their data, and used “fingerprinting” to correlate that data with current TikTok users. Once again, the court agreed with the plaintiff and ruled that the jewelry company’s surveillance and data sharing practices may violate California’s privacy laws. This means that the data privacy class action against Alex and Ani may proceed.
Plaintiffs Can Recover Statutory Damages for CIPA Trap and Trace Claims
California lawmakers have gone to great lengths to protect the data privacy rights of state residents, which includes enacting some of the strongest data protection laws in the country. That is why the California Invasion of Privacy Act (CIPA) imposes both criminal penalties and civil liability on companies that violate the law by using tracking pixels, cookies, and other internet tracking tools.
Importantly, CIPA gives plaintiffs a private right of action to enforce the statute and recover statutory damages in a trap and trace claim. A court can order the defendant to pay up to $5,000 for each violation of CIPA. Alternatively, the defendant could be subject to a civil penalty of three (3) times the actual economic damages suffered by the plaintiff. Ultimately, the judge has discretion to impose whichever penalty is greater.
Contact the Los Angeles Data Privacy Lawyers at Tauler Smith LLP
Are you a California resident who visited the Alex and Ani website? If so, your personal information may have been collected without your knowledge and then shared with TikTok. The Los Angeles data privacy lawyers at Tauler Smith LLP are currently representing clients in a proposed class action against Alex and Ani, and you may be eligible to join the lawsuit and receive financial compensation.
Call or send an email to learn more.
