Goldstein v. Costco Wholesale Corporation

District Court, S.D. Florida·Decided September 9, 2021·No. 9:21-cv-80601·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 21-CV-80601-RAR

JASON GOLDSTEIN, individually and on behalf of all others similarly situated,

Plaintiff,

v.

COSTCO WHOLESALE CORPORATION,

Defendant. _______________________________/

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS

THIS CAUSE comes before the Court on Defendant Costco Wholesale Corporation’s Motion to Dismiss [ECF No. 34] (“Motion”). The Court having carefully reviewed the Motion, Plaintiff’s Response in Opposition [ECF No. 42] (“Response”), and Defendant’s Reply [ECF No. 48], and being otherwise fully advised, it is hereby ORDERED AND ADJUDGED that Defendant’s Motion [ECF No. 34] is GRANTED for the reasons set forth below. Plaintiff’s First Amended Complaint [ECF No. 22] (“FAC”) is DISMISSED with prejudice. BACKGROUND This action joins a flurry of virtually identical cases wherein creative class action litigants have seized on a novel reading of Florida’s decades-old wiretapping statute, the Florida Security of Communications Act (“FSCA”), to attack the use of so-called session replay software on commercial websites. The FSCA provides a cause of action against parties that intercept or use private communications without the speaker’s consent. FLA. STAT. §§ 934.10(1)(a), (d). Plaintiff alleges that Defendant violated the FSCA by using session replay software to record Plaintiff’s mouse clicks and other commands on Defendant’s website. See generally FAC [ECF No. 22]. Defendant moves to dismiss the case for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). See generally Mot. [ECF No. 34]. LEGAL STANDARD

When reviewing a motion to dismiss, a court must view the complaint in the light most favorable to the plaintiff and accept the plaintiff’s well-pleaded facts as true. Hunt v. Aimco Properties, L.P., 814 F.3d 1213, 1221 (11th Cir. 2016). But a court need not accept plaintiff’s legal conclusions as true. Sinaltrainal v. Coca-Cola Co., 578 F.3d 1252, 1261 (11th Cir. 2009); see also Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Thus, “[t]o survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Iqbal, 556 U.S. at 678 (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A pleading is facially plausible when the plaintiff states enough facts for the court to draw a “reasonable inference” that the defendant is liable for the alleged conduct. Id. ANALYSIS

Courts bear the responsibility of applying the law to a constantly shifting technological and societal landscape. When the Framers crafted the Fourth Amendment to the United States Constitution, for example, they could not have envisioned how smartphones and GPS would fit into the framework of “papers” and “effects.” U.S. CONST. amend. IV. See Riley v. California, 573 U.S. 373 (2014); United States v. Jones, 565 U.S. 400 (2012). But the courts’ flexibility has its limits. Courts may not rewrite statutes to change with the times. The Constitutions of Florida and the United States give this power to the legislative bodies alone. Rather, the Court must take the law as it is and apply it faithfully to new facts as they arise. Here, Plaintiff asks the Court to rewrite Florida’s wiretapping law in the face of changing technology. Plaintiff alleges that “Defendant utilized ‘session replay’ spyware to intercept Plaintiff’s and the Class members’ electronic computer-to-computer data communications with Defendant’s website, including how they interacted with the website, their mouse movements and clicks, keystrokes, search terms, information inputted into the website, and pages and content viewed

while visiting the website.” FAC [ECF No. 22] ¶ 7. These actions, says Plaintiff, violated his “substantive legal privacy rights under the FSCA.” Id. ¶ 17. Virtually identical litigation has popped up in state and federal courts all over Florida. Several district courts have adopted by reference a state court order dismissing the claim because “the FSCA does not apply” to claims regarding session replay software. See, e.g., Swiggum v. EAN Servs., LLC, No. 8:21-493, 2021 WL 3022735, at *2 (M.D. Fla. July 16, 2021) (citing Jacome v. Spirit Airlines, Inc., No. 2021- 000947-CA-01 (Fla. Cir. Ct. June 17, 2021) (ruling that “the FSCA does not apply to the plaintiff’s claims regarding session replay technology software on a commercial website”)); Cardoso v. Whirlpool Corp., No. 21-60784, 2021 WL 2820822, at *2 (S.D. Fla. July 6, 2021) (same); Connor v. Whirlpool Corp., No. 21-14180, 2021 WL 3076477, at *2 (S.D. Fla. July 6, 2021) (same). The

Court agrees with these rulings and finds their brevity compelling. But the Court cannot ignore the fundamental problem of statutory construction in Plaintiff’s interpretation of the FSCA. Plaintiff’s attempt to redefine the FSCA’s key terms, coupled with the outbreak of litigation centered on this statute, begs for a deeper analysis to clarify its limited scope. The Court interprets statutory language according to its plain meaning, in the context of the entire statute, as assisted by the canons of statutory construction. Edison v. Douberly, 604 F.3d 1307, 1310 (11th Cir. 2010). The relevant terms of the FSCA must be construed in a manner consistent with their plain meaning and context. See id. The Court therefore turns to the provisions of the statute at issue in this case. Section 934.03(1)(a) of the FSCA prohibits “[i]ntentionally intercept[ing], endeavor[ing] to intercept, or procur[ing] any other person to intercept or endeavor to intercept any wire, oral, or electronic communication,” and Section 934.03(1)(d) prohibits “[i]ntentionally us[ing], or endeavor[ing] to use, the contents of any wire, oral, or electronic communication, knowing or

having reason to know that the information was obtained through the interception of a wire, oral, or electronic communication in violation of [the FSCA].” The statute defines intercept as “the aural or other acquisition of the contents of any wire, electronic, or oral communication through the use of any electronic, mechanical, or other device.” FLA. STAT. § 934.02(3) (emphasis added). Contents are “any information concerning the substance, purport, or meaning of that communication.” Id. § 934.02(7) (emphasis added).1 The touchstone in many cases arising under the FSCA and similar statutes is this definition of contents. Courts interpreting contents under the ECPA distinguish between “a record or other information pertaining to a . . . customer” (known as “record information”) and the contents—i.e., “substance, purport, or meaning”—of the communication itself. In re Zynga Priv. Litig., 750 F.3d

1098, 1106 (9th Cir. 2014) (quotations omitted) (“[T]he term ‘contents’ refers to the intended message conveyed by the communication, and does not include record information.”). Here, Plaintiff alleges that Defendant intercepted the substance of his communications with Defendant’s website. FAC ¶ 39. Plaintiff’s purported substance includes (1) his movements on the website (“mouse clicks and movements,” “scroll movements,” and “pages and content viewed”) and (2) information voluntarily input (“keystrokes,” “copy and paste actions,” “search terms,” and “information inputted by Plaintiff”). Id.

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