Crowley v. Cybersource Corp.

166 F. Supp. 2d 1263, 2001 U.S. Dist. LEXIS 17020, 2001 WL 1173874
CourtDistrict Court, N.D. California
DecidedSeptember 13, 2001
DocketC-00-3180
StatusPublished
Cited by23 cases

This text of 166 F. Supp. 2d 1263 (Crowley v. Cybersource Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crowley v. Cybersource Corp., 166 F. Supp. 2d 1263, 2001 U.S. Dist. LEXIS 17020, 2001 WL 1173874 (N.D. Cal. 2001).

Opinion

MEMORANDUM DECISION AND ORDER

ORRICK, District Judge.

This is a putative class action brought pursuant to the Federal Wiretap Act (“Wiretap Act”), 18 U.S.C. §§ 2510-2522, and the Electronic Communications Privacy Act (“ECPA”), 18 U.S.C. § 2701-2719, by plaintiff Daragh Crowley (“Crowley”) against defendants CyberSource Corporation (“CyberSource”) and Amazon.com, Inc. (“Amazon”). Crowley alleges that he went to Amazon’s web site to purchase goods, and gave Amazon his name, e-mail address, mailing address, credit card number and expiration date, and telephone number. Amazon then transmitted this information to CyberSource, a company that verifies the identity of a person making an online purchase. Crowley’s claims focus on his allegation that CyberSource stored the information he sent it, and used it to create a personal profile. Crowley claims that Amazon and CyberSource thus violated the Wiretap Act and the ECPA, invaded his privacy, acted negligently towards him, and committed other unlawful acts.

CyberSource now moves to dismiss Crowley’s first amended complaint (“amended complaint”) for failure to state a claim pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, and Amazon moves to dismiss the amended com *1266 plaint for failure to state a claim pursuant to Rule 12(b)(6) or, in the alternative, for improper venue pursuant to Rule 12(b)(3) of the Federal Rules of Civil Procedure. For the reasons set forth hereinafter, Amazon’s and CyberSource’s motions to dismiss Crowley’s first cause of action for violation of the Wiretap Act are granted with leave to amend. Amazon’s motion to dismiss the second cause of action for violation of the ECPA is granted with leave to amend. Amazon’s motion to dismiss for improper venue is denied, and the Court declines to exercise supplemental jurisdiction over the state claims.

I.

Crowley filed the amended complaint on behalf of himself and a purported class of persons who “entered into online transactions with Amazon.com prior to August 31, 2000 whose personal and private information was secretly transmitted, used and/or disclosed by CyberSource and/or Amazon.com without such persons’ authorization or consent.” (Am.ComplJ 56.) Crowley’s allegations arise out of Amazon’s use of CyberSource to verify the identity of a person making a credit card purchase on Amazon’s web site.

Amazon is an online merchant that sells, inter alia, books, CDs, and personal electronics devices over the Internet. Amazon uses CyberSource to verify the identity of persons making credit card purchases on its web site. As noted above, when a person makes a purchase on Amazon’s site, that person transmits his name, address, telephone number, e-mail address, and credit card information to Amazon. Amazon transmits this information to Cy-berSource. CyberSource transmits the information to Amazon’s bank and to the credit card association, which in turn routes the information to the customer’s bank. The customer’s bank responds to the credit card association, informing it that the transaction either has or has not been authorized, and that response is routed to CyberSource. If the transaction has not been authorized, CyberSource notifies Amazon, which cancels the transaction. If the transaction has been authorized, Cy-berSource notifies Amazon, Amazon proceeds with the transaction, and the customer’s bank approves a transfer of funds to Amazon’s bank. (Id. ¶ 32.)

Crowley asserts that Amazon sends Cy-berSource “far more information about Plaintiff and the members of the Class than is necessary to obtain authorization for the proposed purchase.” (Id. ¶34.) He alleges that Amazon sends Cyber-Source “the Internet user’s name, address, phone number, email address and even a description of the type of product being purchased.” (Id.) CyberSource allegedly uses the information as follows:

Defendant CyberSource stores this personally identifiable and confidential information about Plaintiff and the Class Members, without their knowledge or consent, for at least six months for the purpose of creating and maintaining personal profiles on Plaintiff and the Class.

(Id. ¶ 35.) Crowley further asserts that CyberSource, “through its affiliations with entities such as Amazon.com, is able to and does compile historical records on Plaintiff and members of the class, including but not limited to, name, email address, address, phone number, credit card numbers, description of the product purchased and the amount of money expended on online purchases.” (Id. ¶43.) This profile includes information regarding purchases made “at any of the websites of Internet merchants with whom CyberSource has a similar relationship [to that which it has with Amazon].” (Id-¶ 44.)

Prior to August 31, 2000, Amazon posted a Privacy Policy that stated that it was “committed to protecting [its customers’] privacy” and “use[d] the information [it *1267 collected] ... to process orders and to provide a more personalized shopping experience.” (Id. ¶ 37.)

Based on this course of conduct, Crowley alleges the following causes of action: (1) interception and disclosure of wire, oral, or electronic communications in violation of the Wiretap Act, against both defendants; (2) violations of the ECPA, against Amazon; (3) unjust enrichment, against both defendants; (4) invasion of privacy, against both defendants; (5) negligence, against both defendants; (6) fraud by concealment, against both defendants; and (7) breach of contract, against Amazon.

Both Amazon and CyberSource filed motions to dismiss, challenging each of the causes of action in the amended complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. Additionally, Amazon challenges venue, pursuant to Rule 12(b)(3) of the Federal Rules of Civil Procedure, asserting that a forum selection clause in a contract between it and purported class members provides that proper venue for this action lies in the State of Washington.

II.

A.

Before turning to the motions to dismiss for failure to state a claim, the Court will address Amazon’s motion to dismiss for improper venue pursuant to Rule 12(b)(3). In ruling on a 12(b)(3) motion, the Court is permitted to consider both the complaint and evidence extrinsic to the complaint. Argueta v. Banco Mexicano, S.A., 87 F.3d 320, 324 (9th Cir.1996).

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Cite This Page — Counsel Stack

Bluebook (online)
166 F. Supp. 2d 1263, 2001 U.S. Dist. LEXIS 17020, 2001 WL 1173874, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crowley-v-cybersource-corp-cand-2001.