Dzananovic v. Bumble, Inc.

CourtDistrict Court, N.D. Illinois
DecidedJuly 7, 2023
Docket1:21-cv-06925
StatusUnknown

This text of Dzananovic v. Bumble, Inc. (Dzananovic v. Bumble, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dzananovic v. Bumble, Inc., (N.D. Ill. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION DARIO DZANANOVIC, individually and ) on behalf of all others similarly situated, ) ) Plaintiff, ) ) No. 21-cv-06925 v. ) ) Judge Andrea R. Wood BUMBLE, INC., et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER Plaintiff Dario Dzananovic, an Illinois resident, has brought this putative class action against Defendants Bumble, Inc., Buzz Holdings L.P. (“Buzz Holdings” or “Bumble Holdings”), and Bumble Trading LLC (“Bumble Trading”) (collectively, “Defendants”), claiming that they violated Illinois’s Biometric Information Privacy Act (“BIPA”), 740 ILCS 14/1 et seq. Specifically, Dzananovic alleges that Defendants used their facial recognition technology to collect his biometric information while he used the photo verification feature on the Bumble online dating application (“Bumble App” or “App”). Now before the Court is Defendants’ motion to dismiss the complaint for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2). (Dkt. No. 29.) For the following reasons, Defendants’ motion is denied. BACKGROUND When considering a motion to dismiss for lack of personal jurisdiction, any well-pleaded facts alleged in the complaint are taken as true and any factual disputes in affidavits are resolved in the plaintiff’s favor. Tamburo v. Dworkin, 601 F.3d 693, 700 (7th Cir. 2010). The facts recited here are taken from Dzananovic’s Amended Complaint (“Complaint”). The Court will address the affidavits and other evidence the parties attached to their briefs, as appropriate, when discussing the parties’ arguments below. See Purdue Rsch. Found. v. Sanofi-Sunthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003). As alleged, the Bumble App is a popular dating platform—with approximately 100 million registered users globally—on which women initiate contact with prospective dating

partners. (Am. Compl. ¶¶ 3–5, Dkt. No. 21.) The App functions using “a freemium model,” where certain services are free, but users must pay for subscriptions or in-app purchases to access premium features. (Id. ¶ 16.) In the third quarter of 2021, for example, the Bumble App generated $142.5 million in revenue from premium services. (Id.) Bumble, Inc. is an American social media company that formerly operated the Bumble App; it is now a holding company with a controlling equity interest in Buzz Holdings. (Id. ¶¶ 10–11.) Bumble, Inc. manages Buzz Holdings’s business and affairs and controls Bumble Trading’s operations. (Id. ¶¶ 12, 19.) While Bumble Holdings operates the Bumble App, Bumble Trading runs the marketing and advertising of the Bumble App in the United States and controls personal information collected and

processed through the App. (Id. ¶¶ 19, 22, 24.) Bumble, Inc.’s main source of revenue from the App consists of users’ subscriptions and in-app purchases. (Id. ¶ 12.) For instance, in the third quarter of 2021, the Bumble App had 1.5 million paying users, leading to $30.99 in average revenue per paying user. (Id. ¶ 34.) Defendants generate revenue from thousands of paying users in Illinois. (Id.) Dzananovic is an Illinois resident who has used the Bumble App since March 2021. (Id. ¶ 9.) To use the Bumble App, users must provide personal identifying information (“PII”), including date of birth, location, gender identity, and sexual preference; Bumble then collects, retains, and uses the data for targeted marketing practices. (Id. ¶¶ 71–72.) Additionally, Bumble has machine learning capabilities, allowing it to analyze users’ behavioral information to personalize potential matches shown to users and to target users who are more apt to become paid members. (Id. ¶¶ 83–84.) Further, the App has an optional photo verification feature to help protect users from fake accounts. (Id. ¶¶ 74–75.) Defendants promote the photo verification feature as a way for users to “flirt, connect, and network comfortably, knowing the person you’re

talking to is exactly who they say they are.” (Id. ¶ 36.) To verify an account, a user uploads a photograph mimicking a pose that the App provides, and the App subsequently reviews the photo and confirms or rejects the requested verification. (Id. ¶ 75.) In particular, the App uses an artificial intelligence tool to conduct a facial scan of the photo, extract geometric data from it, and then create a facial template. (Id. ¶ 76.) BIPA regulates private entities’ “collection, use, safeguarding, handling, storage, retention, and destruction of biometric identifiers and information.” 740 ILCS 14/5(g). According to Dzananovic, Defendants violated BIPA by failing to inform him and other Illinois residents that they were collecting, storing, and using their biometric information and identifiers

when they used the Bumble App. As a result, Dzananovic has sued Defendants on behalf of himself and a class of similarly situated Illinois residents who “had their biometric information and/or biometric identifiers collected, captured, received, or otherwise obtained, or disclosed by Defendants while residing in Illinois.” (Id. ¶ 113.) DISCUSSION Defendants argue that the Complaint must be dismissed under Rule 12(b)(2) because the Court lacks personal jurisdiction over them. When a defendant moves for dismissal under Rule 12(b)(2), “the plaintiff bears the burden of demonstrating that jurisdiction exists.” In re Sheehan, 48 F.4th 513, 520 (7th Cir. 2022) (citation omitted). If the Court holds an evidentiary hearing, the plaintiff must establish personal jurisdiction by a preponderance of the evidence; but when the Courts rules on a motion to dismiss without an evidentiary hearing, the plaintiff need only establish a prima facie case of personal jurisdiction. NBA Props., Inc. v. HANWJH, 46 F.4th 614, 620 (7th Cir. 2022). The Court may consider affidavits and jurisdictional discovery to decide whether the plaintiff has made a prima facie case. Purdue Rsch. Found., 338 F.3d at 782–83. In addition, the Court

accepts as true all well-pleaded allegations in the complaint and resolves all factual disputes in the record in the plaintiff’s favor. Felland v. Clifton, 682 F.3d 665, 672 (7th Cir. 2012). However, when the defendant “submit[s] evidence opposing the district court’s exercise of personal jurisdiction, the plaintiff[ ] must similarly submit affirmative evidence supporting the court’s exercise of jurisdiction.” Matlin v. Spin Master Corp., 921 F.3d 701, 705 (7th Cir. 2019). And the Court accepts as true any unrefuted facts in the defendant’s supporting materials. GCIU- Emp. Ret. Fund v. Goldfarb Corp., 565 F.3d 1018, 1020 n.1 (7th Cir. 2009). Generally, personal jurisdiction is governed by the law of the forum state. Tamburo, 601 F.3d at 700; Fed. R. Civ. P. 4(k)(1). Illinois’s long-arm statute authorizes the exercise of personal

jurisdiction to the full extent of the state and federal constitutions. See 735 ILCS 5/2-209(c).

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Dzananovic v. Bumble, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/dzananovic-v-bumble-inc-ilnd-2023.