G.G. v. Salesforce.com, Inc.

76 F.4th 544
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 3, 2023
Docket22-2621
StatusPublished
Cited by96 cases

This text of 76 F.4th 544 (G.G. v. Salesforce.com, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
G.G. v. Salesforce.com, Inc., 76 F.4th 544 (7th Cir. 2023).

Opinion

In the

United States Court of Appeals For the Seventh Circuit ____________________ No. 22-2621 G.G. and DEANNA ROSE, Plaintiffs-Appellants, v.

SALESFORCE.COM, INC., Defendant-Appellee. ____________________

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 1:20-cv-02335 — Andrea R. Wood, Judge. ____________________

ARGUED FEBRUARY 22, 2023 — DECIDED AUGUST 3, 2023 ____________________

Before HAMILTON, KIRSCH, and PRYOR, Circuit Judges. HAMILTON, Circuit Judge. In the Trafficking Victims Protec- tion Reauthorization Act of 2003, Congress gave victims of sex trafficking the power to bring civil actions to recover damages from those who trafficked them. 18 U.S.C. § 1595 (2003). In 2008, Congress broadened that civil remedy to allow what we will call participant liability. The amendment allows victims to recover damages not only from a trafficker who committed a federal crime but also from a person who “knowingly 2 No. 22-2621

benefits … from participation in a venture which that person knew or should have known has engaged in an act” of sex trafficking. 18 U.S.C. § 1595(a) (2008). Plaintiffs G.G. and her mother Deanna Rose brought this suit under Section 1595 alleging participant liability against defendant Salesforce.com, Inc. G.G. ran away from home at the age of thirteen. She fell into the hands of a sex trafficker who used the now defunct Backpage.com to advertise G.G. Plaintiffs’ theory here is that (a) Backpage.com committed criminal sex-trafficking violations with respect to G.G., among many other victims; (b) defendant Salesforce at least should have known that Backpage.com was engaged in sex trafficking of minors like G.G.; and (c) Salesforce had such a close business relationship with Backpage—providing advice and custom-tailored software for years to help Backpage grow its business—that Salesforce, in the language of Section 1595, knowingly benefited from its participation in what it knew or should have known was Backpage’s sex-trafficking venture. The district court dismissed the case on the pleadings, but we conclude that plaintiffs’ complaint states a viable claim under Section 1595. More specifically, we reject defendant’s arguments: (1) that a “venture” must be primarily a sex-traf- ficking venture; (2) that a participant must have had construc- tive knowledge of the specific victim of sex trafficking, the civil plaintiff; (3) that “participation in a venture” requires direct participation in a “common undertaking or enterprise involv- ing risk and potential profit”; and (4) that to knowingly bene- fit requires that the sex trafficker provide the participant with a benefit because of the participant’s facilitation of a sex-traf- ficking venture and that the participant must have known that No. 22-2621 3

this was the reason for the benefit. All of these defense theo- ries seek to impose restrictions on the civil remedy that are not consistent with the statute as we understand its language. We also find that Salesforce is not entitled to dismissal under Section 230 of the Communications Decency Act, 47 U.S.C. § 230. We reverse the judgment of the district court and re- mand for further proceedings. I. Factual Background & Procedural History Defendant Salesforce.com moved to dismiss this case on the pleadings, so we focus on the facts alleged in plaintiffs’ third amended, and operative, complaint. This opinion says harsh things about Salesforce contributing to sex-trafficking, including trafficking of minors. Because of Salesforce’s tacti- cal choice to move to dismiss, we treat the allegations as true, though we do not vouch for their objective truth at this point in the case. See, e.g., Goldberg v. United States, 881 F.3d 529, 531 (7th Cir. 2018). In 2016, when she was just thirteen years old, plaintiff G.G. ran away from home. She was picked up by a sex trafficker who advertised her on Backpage.com, an online marketplace, and repeatedly sold her into prostitution. G.G.’s mother searched for her daughter. Eventually, in the summer of 2016, her mother found photos of G.G.—in Backpage’s online ads for escorts. Backpage referred her mother to the National Cen- ter for Missing and Exploited Children but did not take down the advertisement. The trafficking and advertising of G.G. on Backpage was not an isolated or even an unusual incident. When Backpage was created in 2004, it initially served as a marketplace for a variety of goods and services. By 2008, however, plaintiffs 4 No. 22-2621

allege, Backpage “had been publicly identified by law en- forcement, United States Attorneys General, and every state Governor as the biggest and most notorious sex trafficking and pimping website in the United States.” Backpage’s sextrafficking was not limited to adults. Dur- ing the three years prior to G.G.’s trafficking, Backpage gen- erated more than 99% of its revenue from “adult advertise- ments,” including those offering minors for sex. In 2010, the National Association of Attorneys General publicly described Backpage as a “hub” of human trafficking, “especially the trafficking of minors.” In October 2016, just a few months af- ter her mother found the advertisement for G.G. on Backpage, California authorities arrested and charged the chief execu- tive officer of Backpage, Carl Ferrer, for pimping minors. In April 2018, Ferrer and Backpage entered into plea agreements with the United States Department of Justice in which they admitted that Backpage had operated as a site for the sale of sex since 2004. A few days later, in response to a felony charge and on the advice of counsel, Backpage confessed in a Texas court that it “knowingly receive[d] a benefit from participat- ing in a venture that involved the trafficking … of a child younger than 18 years of age, and … [had] caused [the child] to engage in or become the victim of conduct prohibited by” Texas Penal Code Section 43.05 (“Compelling Prostitution”). 1 The United States Department of Justice seized Backpage and shut it down.

1 See Judicial Confession and Stipulation and Certification of Discov-

ery, Texas v. Backpage.com, No. 18FC-1653C (Tex. Dist. Ct. Apr. 9, 2018), available at https://digitalcommons.law.scu.edu/historical/1706/. No. 22-2621 5

According to plaintiffs, Salesforce “entered into the first of several lucrative contracts with Backpage” back in 2013, years after the nature of Backpage’s business was widely known, and about three years before G.G. was trafficked. The con- tracts with Salesforce were designed to “facilitate and sup- port” Backpage’s “exponential growth” and to give Backpage “the ability to keep pace with increasing customer demand and scale its platform into an international sex-trafficking hub.” Salesforce did not merely sell Backpage an off-the-shelf software package. It instead sold Backpage software designed specifically for Backpage and provided affirmative, “person- alized support.” With those products and support, Salesforce helped Backpage operate its business, manage relationships with existing customers, market itself to new customers, and improve profitability. “Salesforce sold Backpage targeted so- lutions addressed to the needs of Backpage’s business” and provided “active, ongoing support” that was “tailored” to Backpage’s needs.

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