Dancel v. Groupon, Inc.

District Court, N.D. Illinois·Decided March 4, 2019·No. 1:18-cv-02027·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION Christine Dancel, individually and on ) behalf of others similarly situated, ) Plaintiff, ) ) v. ) Case No. 18 C 2027 ) ) Judge Ronald A. Guzmán Groupon, Inc., ) Defendant. ) MEMORANDUM OPINION AND ORDER For the reasons stated below, the Court denies Plaintiff’s motion for class certification [19]. STATEMENT The Court assumes familiarity with its previous orders and the procedural history of the case. Currently under consideration is Plaintiff’s motion for class certification. Background This case arises from Groupon’s use of photos posted by individuals on their Instagram accounts. In short, Groupon developed software in 2015, which it called the Instagram Widget, that would ask Instagram to locate photographs taken at the businesses for which Groupon hosted Deal Pages and Merchant Pages.1 (Pl.’s Mem. Supp. Mot. Class Cert., Dkt. # 20, at 1.) Groupon describes the Widget as follows: The idea [behind the Widget] was to offer users a “window” into photos taken at the location of Groupon Deal and Merchant Pages. The Widget . . . was located “below the fold,” so that a visitor to the [Groupon] website would need to scroll down to see it. The Widget sent requests to Instagram through the Instagram 1 “Deal Pages actively sell products and services, [while] nothing is ever available to purchase on Merchant Pages[,] which only provide information to consumers.” (Def.’s Resp., Dkt. # 41, at 15.) According to Groupon, the Widget was active from approximately April 2015 through February 2016. (Id. at 13.) API2, and Instagram responded by sending back links to photos (“Image URLs”) taken at a particular location and posted on Instagram. Groupon received the Image URLs, but never received any of the actual image files, which were hosted by Instagram. While the Widget was in effect, a visitor to Groupon’s website could possibly “see” small versions of up to nine linked images when visiting a Groupon page. If Instagram sent more than nine Image URLs for a particular location, the Widget displayed a “Show More Photos” button which, if clicked, would present up to nine more photos. This process could be repeated once more so that, at most, the Widget could present a total of 27 photos for a particular page. The Widget was structured . . . to mirror Instagram’s location feeds, [which] are specific pages on Instagram showing the most popular and most recent publicly-posted images taken at specific locations. Only limited data received from Instagram was ever loaded into the Widget and potentially viewable to Groupon visitors. The Instagram API provided the Widget with the Instagram user’s “username” and a caption (if one existed). However, the username and caption were hidden and never visible in a Groupon visitor’s browser unless that visitor “hovered” (i.e., dragged a mouse over) the Image URL. . . . Groupon stored Image URLs it received from Instagram in a temporary storage file or “cache.” The cache was constantly refreshed with new data from Instagram that overwrote the old data. The surviving data from the cache represents all the Image URL[]s and other Instagram data that are the subject of Plaintiff’s claim. However, both parties agree that just because Image URLs are in the cache files, those images were not necessarily ever loaded into the Widget or ever viewed by a Groupon user. (Def.’s Resp., Dkt. # 41, at 3-5) (emphasis in original). According to Groupon, if an Instagram user’s account was set to “private,” that user’s photos were not accessible to the Widget. Groupon did not look at the photographs prior to posting them on the relevant webpages. (Pl.’s Mem. Supp. Mot. Class Cert., Dkt. # 20, at 1.) Plaintiff, who went by the username “meowchristine,” brought the instant action on behalf of herself and others similarly situated for purported violations of the Illinois Right to Publicity Act (“IRPA”). While at a restaurant in Vernon Hills, Illinois in August 2015, Plaintiff 2 “API” stands for Application Programming Interface, which Groupon describes as a “set of programming instructions and standards that allow applications to talk to one another.” (Def.’s Resp., Dkt. # 41, at 3 n.5.) 2 took a photograph of herself and her boyfriend, posted it on Instagram, and “tagged” it with the restaurant’s name. Groupon posted the photo, along with others, on the restaurant’s Deal Page in January 2016. The elements of a claim under the IRPA require a plaintiff to show: (1) the use of her identity; (2) for commercial purposes; and (3) without consent. Gabiola v. Sarid, No. 16 C 2076, 2017 WL 4264000, at *6 (N.D. Ill. Sept. 26, 2017). Plaintiff moves to certify the following class and subclass: Instagram Class: All persons in the United States who maintained an Instagram account and whose photograph (or photographs) from such account was (or were) acquired and used on a groupon.com webpage for an Illinois business (the “Class”). Personal Photo Subclass: All members of the Instagram Class whose likeness appeared in any photograph acquired and used by Groupon (the “Subclass”). (Pl.’s Mem. Supp. Mot. Class Certification, Dkt. # 20, at 2.) Analysis To be certified as a class action, a proposed class must satisfy the requirements of Federal Rule of Civil Procedure (“Rule”) 23(a) and one of the three alternative requirements in Rule 23(b). Messner v. Northshore Univ. HealthSystem, 669 F.3d 802, 811 (7th Cir. 2012). Rule 23(a) provides that a class may be certified if: (1) the class is so numerous that joinder of all putative class members is impracticable (“numerosity”); (2) there are questions of law or fact common to the putative class (“commonality”); (3) the claims or defenses of the named party are typical of the claims or defenses of the putative class members (“typicality”); and (4) the named party will fairly and adequately protect the interests of the class (“adequacy”). Fed. R. Civ. P. 23(a). “[A] proposed class must always meet the Rule 23(a) requirements[.]” Messner, 669 F.3d at 811. “Because Rule 23(a) provides a gate-keeping function for all class actions, ordinarily [courts] would begin there and only turn . . . to Rule 23(b) after [the court is] certain that all of Rule 23(a)’s requirements had been met.” Bell v. PNC Bank, Nat. Ass’n, 800 F.3d 360, 374 (7th Cir. 2015). Here, Plaintiff seeks certification under Rule 23(b)(3), which requires her to show that: (1) questions of law or fact common to the members of the proposed class predominate over questions affecting only individual class members (“predominance”); and (2) a class action is superior to other available methods of resolving the controversy (“superiority”). Messner, 669 F.3d at 811. District courts should make “whatever factual and legal inquiries are necessary to ensure that requirements for class certification are satisfied before deciding whether a class should be certified, even if those considerations overlap the merits of the case.” Am. Honda Motor Co. v. Allen, 600 F.3d 813, 815 (7th Cir. 2010). “The decision whether to certify a class is one that depends on a careful assessment of the facts, of potential differences among class members, of management challenges, and of the overall importance of the common issues of law 3 or fact to the ultimate outcome.” Riffey v. Rauner, 910 F.3d 314, 318 (7th Cir. 2018).

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Dancel v. Groupon, Inc., (N.D. Ill. 2019).

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Related

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600 F.3d 813 (Seventh Circuit, 2010)
Messner v. Northshore University HealthSystem
669 F.3d 802 (Seventh Circuit, 2012)
Bell v. PNC Bank, National Ass'n
800 F.3d 360 (Seventh Circuit, 2015)
Theresa Riffey v. Bruce Rauner
910 F.3d 314 (Seventh Circuit, 2018)