Balderas v. Google LLC

CourtDistrict Court, D. New Mexico
DecidedSeptember 25, 2020
Docket1:20-cv-00143
StatusUnknown

This text of Balderas v. Google LLC (Balderas v. Google LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balderas v. Google LLC, (D.N.M. 2020).

Opinion

FILED IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO 4:17 pm, 9/25/20 STATE OF NEW MEXICO, ex rel. □□□ HECTOR BALDERAS, Attorney General for the State of New Mexico, Plaintiff, VS. Case No. 20-CV-0143-NDF GOOGLE, LLC, a Delaware limited liability company, Defendant,

ORDER ON GOOGLE’S MOTION TO DISMISS AND MOTION FOR JUDICIAL NOTICE

This matter comes before the Court on a motion to dismiss and a motion for judicial notice filed by Defendant Google, LLC (Google). CM/ECF Document (Doc.) 28, 29. Plaintiff State of New Mexico (State) timely filed responses to both motions (Doc. 30, 31), and Google filed its replies (Doc. 32, 33). Google requested oral argument, but the Court concludes oral argument would not materially benefit the disposition of the pending motions, and oral argument is not typically allowed in cases where the movant has filed replies. For the reasons that follow, Google’s motion for judicial notice and its motion to dismiss the State’s claim alleging violations of the Children’s Online Privacy Protection Act are granted. The state law claims are dismissed

on the basis that the Court declines to exercise jurisdiction. As discussed below, the State is granted limited leave to amend its COPPA claims and reassert its State law claims. Relevant Factual and Procedural Background

This case arises from a web-based service provided by Google called G Suite for Education (“GSFE”) which gives students access to Google’s Gmail, Calendar, Drive, Docs, and other applications. Doc. 1, ¶ 1. According to the State, Google has used GSFE to spy on New Mexico students’ online activities for its own commercial purposes, without notice to parents and without attempting to obtain parental consent. Id. at ¶ 5.

The State alleges Google’s conduct violates the Children’s Online Privacy Protection Act, 15 U.S.C. § 6501 et seq. (“COPPA”) along with the New Mexico Unfair Practices Act, N.M. Stat. Ann. § 57-12-1 et seq. (“UPA”) and New Mexico common law. Id. at ¶¶ 10-13. The State seeks injunctive relief along with civil penalties, fees and costs. Id. at ¶ 14.

Google moves to dismiss the State’s complaint under Rule 12(b)(6). Doc. 28. To avoid converting the motion to one for summary judgment, Google seeks judicial notice of various documents attached in support of its motion. Doc. 29. Google argues that the State’s COPPA claim should be dismissed because the Federal Trade Commission (FTC) allows online service providers like Google to use schools as agents and intermediaries

for parental notice and consent, and asserts that is what Google did. Next, Google argues that the State’s claim under the UPA should be dismissed because (1) it is preempted by COPPA, (2) Google’s alleged misconduct was not made in connection with any purchases by students or schools, and (3) the Complaint fails to allege actionable conduct. Finally, Google argues that the State’s common-law intrusion upon seclusion claim should be dismissed because it had permission to collect student data and, in any event, its data collection was not “highly offensive.”

The State resists dismissal arguing in general that Google is advancing factual arguments which would require that the Court ignore the well-pleaded facts alleged in the complaint in favor of improper extrinsic evidence. Further, as to the COPPA claim, the State argues the Court need not defer to the FTC guidance and even with deference, the narrow FTC exception does not apply. As to its UPA claim, the State argues COPPA

does not preempt state law claims that also violate COPPA. Applicable Legal Standards “To survive a motion to dismiss, a complaint must allege sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570

(2007)). In resolving a motion under Rule 12(b)(6), the court “accept[s] as true all well- pleaded factual allegations in the complaint and view[s] them in the light most favorable to the plaintiff.” Safe Streets All. v. Hickenlooper, 859 F.3d 865, 878 (10th Cir. 2017) (citation omitted). But a complaint must set forth “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550

U.S. at 555. Moreover, fraud claims (such as the fraud-based unfair trade practices claim here) must meet more stringent standards. See Fed. R. Civ. P. 9(b). “In alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake.” Id. Thus, a complaint must “set forth the time, place and contents of the false representation, the identity of the party making the false statements and the consequences thereof.” Koch v. Koch Indus., 203 F.3d 1202, 1236 (10th Cir. 2000) (citation omitted).

Finally, a court may consider materials subject to judicial notice without converting a motion to dismiss into a motion for summary judgment. See Johnson v. Spencer, 950 F.3d 680, 705 (10th Cir. 2020). Under Federal Rule of Evidence 201, judicial notice is permitted of a fact which is a matter of public record even if it is not incorporated into the pleadings if it is not subject to reasonable dispute because it is either

(1) generally known within the territorial jurisdiction of the trial court or (2) capable of accurate and ready determination by resort to “sources whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201; Gallegos v. Bd. of Cty. Comm’rs, 278 F. Supp. 3d 1245, 1259 (D.N.M. 2017) (citation omitted); Van Woudenberg v. Gibson, 211 F.3d 560, 568 (10th Cir. 2000), abrogated on other grounds by McGregor v. Gibson, 248 F.3d 946,

955 (10th Cir. 2001). Discussion Motion for Judicial Notice (Doc. 29). The four documents encompassed in Google’s request for judicial notice include: 1. The GSFE Privacy Notice;1

2. The GSFE Agreement;2

1 See https://gsuite.google.com/terms/education_privacy.html. Doc. 28-2. 2 See https://gsuite.google.com/intl/en/terms/education_terms.html. Doc. 28-3. 3. The Notice Template for Schools When Gathering Parent or Guardian Consent (“Notice template”)3; and 4. The GSFE Privacy and Security FAQs.4

Google asks only that the Court take notice of the fact that these documents exist on Google’s website along with their publicly available content, including the contractual language in the GSFE Agreement to which schools commit. Google argues these documents fall within the general rule for taking judicial notice of factual information found on a party’s website which bears on the allegations in the State’s complaint. The

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Bluebook (online)
Balderas v. Google LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/balderas-v-google-llc-nmd-2020.