Cain v. Redbox Automated Retail, LLC

136 F. Supp. 3d 824, 2015 U.S. Dist. LEXIS 131949, 2015 WL 5728834
CourtDistrict Court, E.D. Michigan
DecidedSeptember 30, 2015
DocketNo. 12-CV-15014
StatusPublished
Cited by1 cases

This text of 136 F. Supp. 3d 824 (Cain v. Redbox Automated Retail, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cain v. Redbox Automated Retail, LLC, 136 F. Supp. 3d 824, 2015 U.S. Dist. LEXIS 131949, 2015 WL 5728834 (E.D. Mich. 2015).

Opinion

OPINION AND ORDER REGARDING THE PARTIES’ CROSS MOTIONS FOR SUMMARY JUDGMENT .

Gerald E. Rosen, Chief Judge, United States District Court

I. INTRODUCTION

Plaintiffs Michelle Cain and Radha Sam-pat brought a putative class action against Defendant Redbox, a video rental company, based on Defendant’s alleged unlawful disclosure to third parties of certain personal information obtained during Defendant’s rental process. Plaintiffs assert three causes of action: (i) a violation of Michigan’s Video Rental Privacy Act (“VRPA”), M.C.L. § 445.1711 et seq.; (2) breach of contract; and (3) unjust enrichment. The parties have now each moved separately for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. The parties have fully [826]*826briefed both motions and have also filed supplemental material with this Court; Having reviewed and considered the parties’, briefs, supplemental authorities, supporting documents and the entire record of this matter, the Court has determined that the. pertinent allegations and legal arguments are sufficiently addressed in these materials and that oral argument would not assist in the resolution of this motion. Accordingly, the Court will decide the motions “on the briefs.” See Local Rule 7.1(e)(2), U.S. District "Court, Eastern District of Michigan. This Opinion and Order sets forth the Court’s ruling. '

II. PERTINENT FACTS

Since 2002, Defendant1 has operated a movie rental business that allows customers ■ to rent physical copies of DVD and Blu-ray discs through- a nationwide network of self-service kiosks. Michael Woko-sin Deck, Dkt. # 46, ¶¶'3-4. These kiosks are located in or just outside various cooperating establishments, such as grocery stores, retailers, drug stores, and convenience stores. Id. ¶ 4. When renting a video at a kiosk, customers select one or more movies by title, pay by swiping a credit card or other payment card, and then take their disc or discs, which is dispensed automatically from the kiosk’s inventory through a slot. During the transaction, customers are provided the option of entering their email address in order to receive a transactional receipt and other notifications, but there is no requirement that théy do so. Id.

. When a Redbox customer makes a rental, she is required to click through several screens in order to select the disc or discs that she wants to rent and provide for payment. See id.; see also Sterk v. Redbox Automated Retail, LLC, No. 11 C 1729, 2013 WL 4451223, at *1 (N.D.Ill. Aug. 16, 2013). After the customer has done this, she must “check out” before receiving her disc or discs. Wokosin Deck, ¶¶ 15-16. Depending on the date on which the disc was rented, the “check out” screen would provide the customer with a prompt, requiring her to click a. box to finalize the transaction. Id. From, June 2010 until roughly June 2011, the kiosk would display, “By clicking on ‘Check Out’ you agree to the following terms and conditions.” Id. ¶ 15; June 2010 Kiosk Screen Shot, Dkt. # 48-7. The “Terms of Use,” described in more detail below, would then be displayed directly below that language. Id. No rental transaction could be completed without the customer affirmatively pressing the “Check Out” button and agreeing to be bound to the Terms of Use. Id. Beginning around June 2011, depending on the particular kiosk location, the “check out” process was slightly modified due to new software installed on the kiosks — each‘kiosk would display, “By pressing ‘pay’ or ‘use credits’ you agree to the Terms.” Wokosin Deck, ¶¶ 16-17, June 2011 Kiosk Screen Shot, Dkt. # 48-8. Below that language was a button labeled “Terms & Privacy” that allowed a customer to go to the Terms of Use and Privacy Policy to review them before completing the transaction. Id.. As discussed in more detail below, there were two different versions of the Terms of Use and Privacy Policy in place during the period in which the transactions at issue in this case took place: one effective from roughly June 2010 to June 2011, and one effective from roughly June 2011 to July 2013. Both sets of agreements, though containing different language, have the same import as relevant here.

[827]*827The Terms of Use, discussed in more detail in the analysis section below, contain detailed contractual language, including required charges, return timing, limitations on use, and procedures for disputes. The Terms also contain an Illinois choice of law clause, which the parties do not dispute. Importantly, the Terms refer on several occasions to the applicable Privacy Policy, which describes the ways in which the customer authorizes Redbox to use certain “personal information” and other data collected by Redbox during the transaction. As explained below, these agreements form the crux of the debate in this case.

Redbox also contracts with various vendors to aid it in various business functions, “such as providing customer call center services, génerating rental receipts that are emailed to customers at their request, sending marketing information to Redbox consumers, and using anonymized customer rental information for internal purposes.” Wokosin Deck ¶ 32. In order to do this, Redbox shares with those vendors various bits of information associated with customer transactions. At issue here is information that Redbox shared with four vendors: ExactTarget, Experian Marketing Solutions (“Experian”), Adobe Insight (“Adobe”), and Stream Global Services (“Stream”).

First, Redbox employs ExactTarget to “genera,te[] rental and transactional receipts. . .when a movie is rented from a kiosk.” Id. ¶ 40. “Given the nature of the email transaction receipt, ExactTarget, by definition, has movie transactional information (because it is sending the transactional receipt for that movie), and it also receives the specific email address that the customer provided for that transaction. Redbox does not provide the name or any other information about that customer.” Id. ¶ 42. More specifically, as Plaintiff alleges, ExactTarget receives each “customer’s email address, video title rented (or returned), kiosk location, and last four digits of the customer’s credit card...in order to enable ExactTarget to send emails and ads to that customer.” Pk’s Resp. to Def.’s Mot. for Summ. J., Dkt. # 61, at 3; see also Sarah Hatch Deck, Dkt. #53-2, ¶¶ 8, 10, 12, 14.

Second, Redbox. employs Experian to provide “marketing email services,” which includes promotional emails sent to customers regarding new Redbox releases, and to “track promotion code redemptions.” Wokosin Deck ¶¶ 36-37. According to Redbox, it does not share any personal rental history with Experian; instead it shares “limited customer information,” including a customer’s email address and name. Id. Plaintiffs contend,, however, that in order to perform its marketing email functions, Experian is provided with each customer’s “birthdate, email address, credit card , zip code, date of first rental, preferred genre, date of most recent rental, location of the kiosk last rented from, total number of rentals last made, total number of lifetime rentals, and the dates of any interactions with customer service.” Pl.’s Resp. to Def.’s Mot. for Summ.- J., Dkt. # 61, at 4; see also Redbox-Experian Data Stream, Dkt.

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Bluebook (online)
136 F. Supp. 3d 824, 2015 U.S. Dist. LEXIS 131949, 2015 WL 5728834, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cain-v-redbox-automated-retail-llc-mied-2015.