Shopify Must Face Data Privacy Lawsuit in US
A US appeals court on Monday revived a proposed data privacy class action against Shopify, in a decision that could make it easier for American courts to assert jurisdiction over internet-based platforms.
In a 10-1 decision, the 9th US Circuit Court of Appeals in San Francisco said the Canadian e-commerce company can be sued in California for collecting personal identifying data from people who buy things on websites of retailers from that state.
Brandon Briskin, a California resident, said Shopify installed tracking software known as cookies on his iPhone without his consent when he bought athletic wear from the retailer I Am Becoming, and used his data to create a profile it could sell to other merchants.
Shopify said it should not be sued in California because it operates nationwide and did not aim its conduct toward that state. The Ottawa-based company said Briskin could sue in Delaware, New York or Canada.
A lower court judge and a three-judge 9th Circuit panel had agreed the case should be dismissed, but the full appeals court said Shopify 'expressly aimed' its conduct towards California.
'Shopify deliberately reached out ... by knowingly installing tracking software onto unsuspecting Californians' phones so that it could later sell the data it obtained, in a manner that was neither random, isolated, or fortuitous,' circuit judge Kim McLane Wardlaw wrote for the majority.
Lawyers for Shopify and Briskin did not immediately respond to requests for comment.
A bipartisan group of 30 states plus Washington, DC sided with Briskin. They said they needed an ability to enforce their own consumer protection laws against companies that avail themselves of local marketplaces through the internet.
The US Chamber of Commerce supported Shopify, saying a broad grant of jurisdiction would harm back-end service providers whose software is used worldwide.
Circuit judge Consuelo Callahan dissented, criticising the majority's 'travelling cookie rule' because it 'impermissibly manufactures jurisdiction wherever the plaintiff goes.'
The 9th Circuit includes nine western US states, Guam and the Northern Mariana Islands.
The case is Briskin v Shopify, Inc. et al, 9th US Circuit Court of Appeals, No. 22-15815.
By Jonathan Stempel; Edited by Aurora Ellis
Learn more:
Shopify Takes Steps To Pull In Billions From Passive Funds
Since announcing last week that the e-commerce company would transfer its US-listed shares to the marketplace, Shopify has risen 16 percent. Even after the company moves to Nasdaq, it will maintain a dual listing on the Toronto Stock Exchange.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
29 minutes ago
- Yahoo
Longtime spokesperson Tom Bodett sues Motel 6
The Brief Tom Bodett filed a federal lawsuit against Motel 6, claiming the chain used his voice and name without authorization after their contract ended. The dispute stems from a missed $1.2 million payment and the breakdown of a nearly 40-year partnership between Bodett and the motel brand. Motel 6's parent company, G6 Hospitality, said it was surprised by the lawsuit but expressed appreciation for Bodett's contributions. Tom Bodett, whose warm baritone and iconic line "we'll leave the light on for you" made him the voice of Motel 6 for nearly four decades, is suing the motel chain and its parent company for alleged unauthorized use of his name and voice. According to a lawsuit filed Monday in Manhattan federal court, Bodett said he ended his relationship with Motel 6 after its new owner, India-based travel firm OYO, failed to make a $1.2 million annual payment due on Jan. 7. Their contract was set to expire in November. The backstory Despite the contract lapse, Bodett claims Motel 6 continued using his voice and name on its national reservation phone line. The lawsuit alleges violations of both his contract rights and federal trademark law. Bodett said he attempted to reach a confidential settlement that would honor his legacy and protect Motel 6's reputation and franchisees, but accused the company of responding with "misrepresentations, obfuscations, and delay tactics." The lawsuit seeks $1.2 million in owed compensation, along with additional damages and a share of profits. What they're saying A spokesperson for G6 Hospitality, the parent company of Motel 6, said the company was "surprised" by Bodett's lawsuit but indicated it hoped for an amicable resolution. "We appreciate Mr. Bodett's contributions over the past years," the spokesperson said. "Of course, we will continue to advertise keeping the lights on for you." Bodett, when contacted by email, told Reuters: "The complaint says all there is to say." Tom Bodett became Motel 6's lead spokesman in 1986 and said he coined the phrase "we'll leave the light on for you" during an unscripted ad-lib. His voice became synonymous with the brand's down-to-earth identity and was featured in both radio and TV campaigns for decades. In addition to his advertising work, Bodett is known for his appearances on National Public Radio and for narrating several Ken Burns documentaries. What's next The lawsuit, Bodett et al v G6 Hospitality LLC et al, was filed in the U.S. District Court for the Southern District of New York. It could set a notable precedent for voice usage and contract rights in long-term brand relationships, especially as companies change ownership. The Source This report is based on original reporting from Reuters, which first detailed the lawsuit filed by Tom Bodett against Motel 6 and its parent company G6 Hospitality. The article includes direct quotes from legal filings and statements provided to Reuters by both Bodett and Motel 6.
29 minutes ago
Trump clears path for Nippon investment in US Steel, so long as it fits gov't terms
WASHINGTON -- President Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S. Steel, so long as the Japanese company complies with a 'national security agreement' submitted by the federal government. Trump's order didn't detail the terms of the national security agreement. But the iconic American steelmaker and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a ' golden share" — essentially veto power to ensure the country's national security interests are protected against cutbacks in steel production. 'We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership," the two companies said. "This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement said. 'The partnership is expected to be finalized promptly,' the statement said. U.S. Steel rose $2.66, or 5%, to $54.85 in afterhours trading Friday. Nippon Steel's original bid to buy the Pittsburgh-based U.S. Steel in late 2023 had been valued at $55 per share. The companies offered few details on how the golden share would work, what other provisions are in the national security agreement and how specifically the $11 billion would be spent. White House spokesman Kush Desai said the order 'ensures U.S. Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America's national and economic security.' James Brower, a Morrison Foerster lawyer who represents clients in national security-related matters, said such agreements with the government typically are not disclosed to the public, particularly by the government. They can become public, but it's almost always disclosed by a party in the transaction, such as a company — like U.S. Steel — that is publicly held, Brower said. The mechanics of how a golden share would work will depend on the national security agreement, but in such agreements it isn't unusual to give the government approval rights over specific activities, Brower said. U.S. Steel made no filing with the U.S. Securities and Exchange Commission on Friday. Nippon Steel originally offered nearly $15 billion to purchase U.S. Steel in an acquisition that had been delayed on national security concerns starting during Joe Biden's presidency. As it sought to win over American officials, Nippon Steel gradually increased the amount of money it was pledging to invest into U.S. Steel. American officials now value the transaction at $28 billion, including the purchase bid and a new electric arc furnace — a more modern steel mill that melts down scrap — that they say Nippon Steel will build in the U.S. after 2028. Nippon Steel had pledged to maintain U.S. Steel's headquarters in Pittsburgh, put U.S. Steel under a board with a majority of American citizens and keep plants operating. It also said it would protect the interests of U.S. Steel in trade matters and it wouldn't import steel slabs that would compete with U.S. Steel's blast furnaces in Pennsylvania and Indiana. Trump opposed the purchase while campaigning for the White House, and using his authority Biden blocked the transaction on his way out of the White House. But Trump expressed openness to working out an arrangement once he returned to the White House in January. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment. Trump said then that the deal would preserve '51% ownership by Americans,' although Nippon Steel has never backed off its stated intention of buying and controlling U.S. Steel as a wholly owned subsidiary. 'We have a golden share, which I control,' Trump said. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.' The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday.
Yahoo
29 minutes ago
- Yahoo
US Steel and Nippon Steel say Trump has approved their partnership
President Donald Trump has approved a partnership between US Steel and Nippon Steel, the companies said in a release on Friday. 'We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,' the companies said in a statement. The steelmakers also entered into a national security agreement with the US government, the statement said. A finalized partnership would cap a deal that had previously drawn bipartisan opposition, including a block by then-President Joe Biden early this year. But Trump dropped his opposition after taking office this year, making the fortunes of the once-mighty US Steel something of a stand-in for the manufacturing renaissance he said he wants to see across the United States. 'President Trump promised to protect American Steel and American Jobs — and he has delivered on that promise,' White House spokesperson Kush Desai said in a statement. 'Today's executive order ensures US Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America's national and economic security.' The national security agreement 'provides that approximately $11 billion in new investments will be made by 2028, which includes the initial investment in a greenfield project that would be completed after 2028,' the companies said in their statement. The agreement also contains governance commitments, including a so-called 'golden share' that could give the US government special say in how the partnership is run. Shares of US Steel (X) climbed 5% on Friday in after-hours trading. Trump traveled to Pennsylvania two weeks ago to celebrate a deal between the two companies, speaking before a crowd of cheering steelworkers, many in hard hats and safety vests. 'We're going to be so successful. You have just, you have just started, you watch, we're here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company, you're going to stay an American company,' Trump said at a US Steel plant just outside of Pittsburgh. US Steel had warned it would be forced to close some of its older, unionized mills unless the deal is completed and it gets the investment dollars needed to modernize. The United Steelworkers (USW) union is concerned Nippon's long-term goal is to shift production to its non-union operations in Texas or import steel from Japan to be finished in the United States, ending integrated steel production at US Steel. Nippon Steel has promised, however, to honor the union's contract with US Steel and to invest billions in integrated mills in Pennsylvania and Indiana. US Steel was once a symbol of American industrial power. It was the most valuable company in the world and, soon after its 1901 creation, became the first to be worth $1 billion. Its steel helped build America, from the skyscrapers dotting city landscapes to the cars speeding down highways, to the appliances inside millions of homes. But US Steel has declined sharply since its heyday. It is no longer even the largest US steelmaker, with only 14,000 US employees — 11,000 of whom are USW members. This story has been updated with additional content. CNN's Robert Ilich contributed reporting. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
