Collins v. Pearson Education, Inc.

CourtDistrict Court, S.D. New York
DecidedMarch 1, 2024
Docket1:23-cv-02219
StatusUnknown

This text of Collins v. Pearson Education, Inc. (Collins v. Pearson Education, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collins v. Pearson Education, Inc., (S.D.N.Y. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

JOHN COLLINS, on behalf of himself and all others similarly situated, 23 Civ. 2219 (PAE) Plaintiff, ~v- OPINION & ORDER PEARSON EDUCATION, INC., Defendant.

PAUL A, ENGELMAYER, District Judge: Plaintiff John Collins brings this putative class action against Pearson Education, Inc. (“Pearson”) alleging violations of the Video Privacy Protection Act (“VPPA”), 18 U.S.C. § 2710. Collins alleges that Pearson knowingly discloses to Meta Platforms, Inc. (“Facebook”)—the parent company of the popular social media service Facebook—data containing Collins’ and other subscribers’ personally identifiable information (“PII”) without their consent. Pearson has moved to dismiss Collins’ Complaint for lack of subject matter jurisdiction under Federal Rule of Civil Procedure 12(b)(1), for failure to give fair notice under Federal Rule of Civil Procedure 8(a), and for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). In the alternative, Pearson moves to strike Collins’ class allegations under Federal Rule of Civil Procedure 12(f). For the following reasons, the Court denies Pearson’s motions to dismiss and to strike,

L Factual Background! Pearson is an education media company that publishes and sells a wide variety of print and digital products. Dkt. 1 (‘Compl.”) | 16. One of its digital products is Pearson+, available on Pearson’s website Pearson.com. fd. Pearsont offers a wide range of services, including electronic textbooks and on-demand, pre-recorded educational videos. □□□ Separate from its Pearson+ videos, Pearson also provides other pre-recorded video content on its website. 7d. Pearson installed on its website a tracking product, called the Meta Pixel (the “Pixel”), developed by Facebook. /d. 18. The Pixel tracks users’ actions on websites and reports them to Facebook. Id. § 24. Facebook introduced the Pixel in 2013 to allow online businesses like Pearson to track its users’ online activity on their respective websites and to build detailed profiles about them. Jd. 418. Facebook advertises to companies, like Pearson, that installing the Pixel allows them to “track Facebook ad-driven visitor activity on [their] website” and enables Facebook “to match ... website visitors to their respective Facebook User accounts.” Jd. {19 (quoting Meta Pixel, META FOR DEVELOPERS, https://developers.facebook.com/docs/meta- pixel/get-started). Once embedded and activated, the Pixel “tracks the people and type of actions they take,” including the webpages users visit, the buttons they click, as well as the specific information they input into a website. /d. {| 18 (quoting Retargeting: How to Advertise to Existing Customers with Ads on Facebook, META FOR BUSINESS, https://www.facebook.com/business/goals/retargeting). During the Pixel installation process, Pearson had a menu of available user activities or “events”

' The Court draws the facts in this decision principally from the Complaint. For purposes of the motion to dismiss under Rule 12(b)(i), the Court may refer to evidence outside the pleadings. Makarova v. United States, 201 F.3d 110, 113 Qd Cir, 2000). The Court, for this purpose, has considered the declaration of David Youssef, Dkt. 12 (“Youssef Decl.”), submitted by Pearson.

it could select to track and automatically disclose to Facebook. Id. 421. This includes a user’s name, email, phone number, and Facebook ID (“FID”). fd. A user’s Facebook ID is a unique and persistent identifier Facebook assigns to each Facebook user. Jd. Anyone who knows a user’s Facebook ID can type “facebook.com/” followed by the Facebook ID into a web browser to view that user’s Facebook profile page. /d. 22. The Pixel transmits a user’s unencrypted Facebook ID to Facebook using a “c_user” cookie.” Jd. Pearson chose to track and transmit to Facebook via the Pixel a user’s Facebook ID, whether a user requested a video on Pearson’s website, and the video title and URL. Id. ff 22, 24-28. The Pixel discloses a user’s Facebook ID, which is displayed within the “c_user” code, coupled with the title and URL of any video requested or obtained. Id. { 27. Collins is a Pearson subscriber and a Facebook user.? Jd, 33. Collins became a Pearson digital subscriber by providing, among other things, his name and email address to register for an account. Jd. Collins contends that he “requested or obtained video materials and/or services through Pearson.com.” Jd. | 34. He contends that Pearson disclosed to Facebook his Facebook ID coupled with the specific titles and URLs of the videos and other services he requested or obtained from Pearson’s website. Jd. He never consented, agreed, authorized, or otherwise permitted Pearson to disclose this information to Facebook. Jd. { 37. Collins brings this putative class action on behalf of all Pearson subscribers who

2 A cookie is “a small file or part of a file stored on a World Wide Web user’s computer, created and subsequently read by a website server, and containing personal information (such as a user identification code, customized preferences, or a record of pages visited).” Cookie, MERRIAM- WEBSTER.COM DICTIONARY, https://www.merriam-webster.com/dictionary/cookie. 3 Collins alleges he has been a Pearson subscriber and has had a Facebook account “at all relevant times.” Compl. 33. Because the class period begins March 15, 2021, the Court infers that Collins has been a Pearson subscriber and a Facebook user since at least that date. Id. 741.

requested or obtained video materials on Pearson’s website and used Facebook during the time the Pixel was installed on Pearson’s website. fd. § 40. The class period is between March 15, 2021, and March 15, 2023 (the date the Complaint was filed). fd. 41. il. Procedural History On March 15, 2023, Collins filed the Complaint. On May 16, 2023, Pearson moved to dismiss, Dkt. 10, and filed a memorandum of law, Dkt. 11 (“Def. Mem.”), and a declaration in support, Dkt. 12 (“Youssef Decl.”). On May 18, 2023, the Court ordered Collins to either amend the Complaint or respond to the motion to dismiss. Dkt. 17. On June 13, 2023, Collins filed an opposition to the motion to dismiss. Dkt. 22 (“Pl. Mem.”). On June 27, 2023, Pearson filed a reply. Dkt. 23 (“Reply”). Between August 2, 2023, and February 23, 2024, Collins filed six notices of supplemental authorities. Dkts. 34, 36-39, III. Motion to Dismiss Under Rule 12(b)(1) A. Applicable Legal Standards “A case is properly dismissed for lack of subject matter jurisdiction under Rule 12(b)(1) when the district court lacks the statutory or constitutional power to adjudicate it.” Makarova, 201 F.3d at 113 (citation omitted). “A plaintiff asserting subject matter jurisdiction has the burden of proving by a preponderance of the evidence that it exists.” Morrison v. Nat’l Austl. Bank Ltd., 547 F.3d 167, 170 (2d Cir, 2008) (citation omitted). “[JJurisdiction must be shown affirmatively, and that showing is not made by drawing from the pleadings inferences favorable to the party asserting it.” Jd. (citation omitted). Additionally, a court may properly refer to matters outside the pleadings when considering the existence of jurisdiction on a motion pursuant to Rule 12(b)(1). See Kamen v. Am. Tel. & Tel.

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Collins v. Pearson Education, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/collins-v-pearson-education-inc-nysd-2024.