Cody v. Ring LLC

District Court, N.D. California·Decided February 22, 2024·No. 3:23-cv-00562·Unknown

Opinion

ANNETTE CODY, Case No. 23-cv-00562-AMO

Plaintiff, ORDER GRANTING MOTION TO v. DISMISS AND DENYING MOTION FOR LEAVE TO FILE AMICUS RING LLC, et al., CURIAE BRIEF Defendants. Re: Dkt. No. 25, 39

Before the Court is Defendant Ring LLC’s (“Ring”) motion to dismiss and National Retail Federation’s (“NRF”) motion for leave to file amicus curiae brief. The matters are fully briefed and suitable for decision without oral argument. See Civil L.R. 7-1(b). Having read the parties’ papers and carefully considered their arguments and the relevant legal authority, the Court hereby GRANTS Defendant’s motion to dismiss and DENIES NRF’s motion for leave to file amicus brief for the following reasons. Defendant Ring manufactures and sells smart home and home security devices.1 ECF 19 (“FAC”) ¶ 5. In September of 2022, Plaintiff Annette Cody (“Cody”) visited Ring’s website through the web browser on her smart phone and had a brief conversation through the chat feature with a customer representative from Ring. Id. ¶ 21. Ring enables and allows a third party, Kustomer, Inc., a subsidiary of Meta, to intercept chats between customers and Ring. Id. ¶ 10. Kustomer’s application program is “plugged into”

1 As it must, the Court accepts Cody’s allegations in the complaint as true and construes the Ring’s website. Id. ¶ 11. When chat messages are sent to Ring, they are “first routed through [Kustomer’s] server . . . to analyze and collect customer-support agent interactions in real time . . . as they occur.” Id. ¶ 12. When Cody used the website, Ring “caused the internet communication . . . to be recorded” and “secretly allow[ed], aid[ed], and abett[ed] [Kustomer] to intercept and eavesdrop on the conversations during transmission, and then exploit the data for their mutual gain.” Id. ¶¶ 23, 35. “Meta identifies ‘user interests’ by monitoring a collection of ‘offsite’ user activity,” then “generates revenue by selling advertising space through its subsidiaries’ ability to identify those offsite user interests,” and finally “after harvesting the chat transcripts for valuable data, Meta’s brands bombard the unsuspecting Website visitors with targeted advertising.” Id. ¶ 15. Kustomer “exploit[s], monetize[es], and use[s]” the data. Id. ¶ 18. On February 8, 2023, Cody filed a putative class action complaint against Ring and Does 1 through 25. ECF 1. On April 16, 2023, in response to Ring’s first motion to dismiss, Cody filed a first amended complaint alleging two violations of the California Invasion of Privacy Act (“CIPA”), Cal. Penal Code, §§ 631(a), 632.7. ECF 19. Ring filed the motion to dismiss at issue on May 1, 2023. ECF 25. Under Rule 12(b)(6) of the Federal Rules of Civil Procedure, a complaint may be dismissed for failure to state a claim for which relief may be granted. Fed. R. Civ. P. 12(b)(6). Rule 12(b)(6) applies when a complaint lacks either a “cognizable legal theory” or “sufficient facts alleged” under such a theory. Godecke v. Kinetic Concepts, Inc., 937 F.3d 1201, 1208 (9th Cir. 2019) (citation omitted). Whether a complaint contains sufficient factual allegations depends on whether it pleads enough facts 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)). A claim is plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. at 678. When evaluating a motion to dismiss, the court “accept[s] factual allegations in the complaint as true and F.3d at 1031. However, “allegations in a complaint . . . may not simply recite the elements of a cause of action [and] must contain sufficient allegations of underlying facts to give fair notice and to enable the opposing party to defend itself effectively.” Levitt v. Yelp! Inc., 765 F.3d 1123, 1135 (9th Cir. 2014) (citations omitted). The Court may dismiss a claim “where there is either a lack of a cognizable legal theory or the absence of sufficient facts alleged under a cognizable legal claim.” Hinds Invs., L.P. v. Angioli, 654 F.3d 846, 850 (9th Cir. 2011). If a court dismisses a complaint for failure to state a claim, it should “freely give leave” to amend “when justice so requires.” Fed. R. Civ. P. 15(a)(2). A court has discretion to deny leave to amend due to “undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendment previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, [and] futility of amendment.” Leadsinger, Inc. v. BMG Music Publ’g, 512 F.3d 522, 532 (9th Cir. 2008) (quoting Foman v. Davis, 371 U.S. 178, 182, (1962)). To determine whether amendment would be futile, courts examine whether the complaint can be amended to cure the defect requiring dismissal “without contradicting any of the allegations of [the] original complaint.” Reddy v. Litton Indus., Inc., 912 F.2d 291, 296-97 (9th Cir. 1990). A. Section 631 Ring argues that Cody’s claim under California Penal Code Section 631(a) fails on multiple grounds: (1) Ring cannot be held liable for recording its own conversation; (2) Cody does not allege tapping of a telephone line; (3) Cody’s allegations undermine any claim of interception in transit; (4) Cody consented to any recording; and (5) Cody fails to state a claim for aiding and abetting a third-party violation. ECF 25 at 13-26. California Penal Code § 631(a) punishes any person who:

(1) “by means of any machine, instrument, or contrivance, or in any other matter, intentionally taps, or makes any unauthorized connection . . . with any telegraph or telephone wire, line, cable, or instrument”; (2) “willfully and without the consent of all parties to the communication, or in meaning of any message . . . while the same is in transit or passing over any wire, line, or cable, or is being sent from, or received at any place within this state”; (3) “uses, or attempts to use, in any manner, or for any purpose, or to communicate in any way, any information so obtained”; or

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Cody v. Ring LLC, (N.D. Cal. 2024).

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