Brandon Briskin v. Shopify, Inc.

87 F.4th 404
CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 28, 2023
Docket22-15815
StatusPublished
Cited by39 cases

This text of 87 F.4th 404 (Brandon Briskin v. Shopify, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brandon Briskin v. Shopify, Inc., 87 F.4th 404 (9th Cir. 2023).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

BRANDON BRISKIN, on behalf of No. 22-15815 himself and those similarly situated, D.C. No. 4:21-cv- Plaintiff-Appellant, 06269-PJH

v. OPINION SHOPIFY, INC.; SHOPIFY (USA), INC.; SHOPIFY PAYMENTS (USA), INC.,

Defendants-Appellees.

Appeal from the United States District Court for the Northern District of California Phyllis J. Hamilton, District Judge, Presiding

Argued and Submitted August 16, 2023 San Francisco, California

Filed November 28, 2023

Before: Consuelo M. Callahan, Bridget S. Bade, and Daniel A. Bress, Circuit Judges.

Opinion by Judge Bress 2 BRISKIN V. SHOPIFY, INC.

SUMMARY *

Specific Jurisdiction

The panel affirmed the district court’s dismissal, due to lack of specific personal jurisdiction over the defendants, of a putative class action alleging that Shopify, Inc. violated various California privacy and unfair competition laws because it deliberately concealed its involvement in certain consumer transactions. Defendants offer a web-based payment processing platform to merchants nationwide. When processing payments, defendants obtain the personal information of those merchants’ customers. For specific jurisdiction to exist over Shopify, plaintiff’s claim must arise out of or relate to Shopify’s forum-related activities. The panel held that there was no causal relationship between Shopify’s broader business contacts in California and plaintiff’s claims because these contacts did not cause plaintiff’s harm. Nor did plaintiff’s claims “relate to” Shopify’s broader business activities in California outside of its extraction and retention of plaintiff’s data. Because there was an insufficient relationship between plaintiff's claims and Shopify’s broader business contacts in California, the activities relevant to the specific jurisdiction analysis were those that caused plaintiff’s injuries: Shopify’s collection, retention, and use of consumer data obtained

* This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. BRISKIN V. SHOPIFY, INC. 3

from persons who made online purchases while in California. The panel held that Shopify, which provides nationwide web-based payment processing services to online merchants, did not expressly aim its conduct toward California. The panel held that plaintiff’s California connection—plaintiff resides in California and was physically located in California when he used Shopify’s e-commerce payment system—did not matter to the analysis of whether Shopify expressly aimed its activities toward California. When analyzing whether a court has personal jurisdiction over a web-based payment processor in a suit alleging the unlawful extraction, retention, and sharing of consumer data, the legal framework and principles that should be brought to bear are those found in the court’s personal jurisdiction cases involving interactive websites. Applying those principles to this case, the panel held that Shopify did not expressly aim its suit- related conduct toward California. The panel held that the district court’s effective denial of plaintiff’s request for jurisdictional discovery of Shopify was not an abuse of discretion.

COUNSEL

Nicolas A. Sansone (argued), Allison M. Zieve, and Scott L. Nelson, Public Citizen Litigation Group, Washington, D.C.; Seth A. Safier, Matthew T. McCrary, and Todd Kennedy, Gutride Safier LLP, San Francisco, California; for Plaintiff- Appellant. Moez Kaba (argued), Hueston Hennigan LLP, Los Angeles, California; Sourabh Mishra, Hueston Hennigan LLP, 4 BRISKIN V. SHOPIFY, INC.

Newport Beach, California; Adam Minchew, Huestan Hennigan LLP, New York, New York; for Defendants- Appellees.

OPINION

BRESS, Circuit Judge:

The defendants in this case offer a web-based payment processing platform to merchants nationwide. When processing payments, the defendants obtain the personal information of those merchants’ customers. In this case of first impression, we are asked to decide whether defendants’ extracting and retaining of consumer data and their tracking of customers exposes them to personal jurisdiction in California, where a consumer made his online purchase. We hold that the defendants are not subject to specific jurisdiction in California because they did not expressly aim their suit-related conduct at the forum state. When a company operates a nationally available e-commerce payment platform and is indifferent to the location of end- users, the extraction and retention of consumer data, without more, does not subject the defendant to specific jurisdiction in the forum where the online purchase was made. We affirm the dismissal of the plaintiff’s complaint. I The plaintiff in this case is Brandon Briskin, a resident of California. In June 2019, Briskin, while present in California, used his iPhone’s Safari browser to navigate to the website of California-based retailer IABMFG to purchase fitness apparel. Although Briskin claims he did not BRISKIN V. SHOPIFY, INC. 5

know it at the time, IABMFG’s website used software and code from Shopify, Inc. to process customer orders and payments. Shopify, Inc. is a Canadian corporation with its headquarters in Ottawa, Canada. Shopify provides participating merchants with a sales platform that enables the processing of online purchases. As part of its business, Shopify obtains, processes, stores, analyzes, and shares the information of consumers who complete transactions on Shopify’s merchant-customers’ websites. Although Briskin believed he was dealing only with IABMFG, in fact it was Shopify’s e-commerce platform that was operating behind the scenes to facilitate Briskin’s purchase. When completing his online order, Briskin input his personal identification information (name, address, etc.) and credit card number into IABMFG’s website. Shopify collected this information. Shopify also installed cookies onto Briskin’s phone, connected his browser to its network, generated payment forms requiring Briskin to enter private identifying information, and stored Briskin’s personal and credit card information for later use and analysis. Shopify also transmitted Briskin’s payment information to a second payment processor, Stripe, for additional storage, analysis, and processing. Shopify used the customer information it received to create consumer profiles, which Shopify also shared with its merchant and other business partners. In August 2021, Briskin filed this putative class action in the United States District Court for the Northern District of California, alleging that Shopify violated various California privacy and unfair competition laws because it deliberately concealed its involvement in the consumer transactions. The complaint defined the proposed class as “[a]ll natural 6 BRISKIN V. SHOPIFY, INC.

persons who, between August 13, 2017 and the present, submitted payment information via Shopify’s software while located in California.” Briskin’s complaint named as defendants Shopify, Inc. and two of its wholly owned subsidiaries, Shopify (USA) Inc. (“Shopify USA”) and Shopify Payments (USA), Inc. (“Shopify Payments”). Briskin alleges that Shopify USA is a Delaware corporation with its principal place of business in Canada. 1 Shopify Payments is a Delaware corporation with its principal place of business in Delaware. In this opinion, we use “Shopify” to refer to all three defendants, collectively. In his operative complaint, Briskin provided additional allegations about Shopify’s contacts with California. Although the parties dispute the jurisdictional relevance of these contacts, Briskin alleges that Shopify not only reaches into California to extract consumers’ personal data, but also directly contracts with California merchants, including IABMFG.

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