In re Yahoo Mail Litigation

308 F.R.D. 577, 2015 U.S. Dist. LEXIS 68585, 2015 WL 3523908
CourtDistrict Court, N.D. California
DecidedMay 26, 2015
DocketCase No. 13-CV-04980-LHK
StatusPublished
Cited by35 cases

This text of 308 F.R.D. 577 (In re Yahoo Mail Litigation) 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
In re Yahoo Mail Litigation, 308 F.R.D. 577, 2015 U.S. Dist. LEXIS 68585, 2015 WL 3523908 (N.D. Cal. 2015).

Opinion

[582]*582ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR CLASS CERTIFICATION

[PUBLIC REDACTED VERSION]

LUCY H. KOH, United States District Judge

This case involves putative class action claims regarding Defendant Yahoo!, Inc.’s (“Yahoo”) practice of scanning and analyzing emails of non-Yahoo Mail subscribers in purported violation of federal and California wiretapping laws. Plaintiffs Cody Baker, Brian Pincus, Halima Nobles, and Rebecca Abrams, individually and on behalf of those similarly situated (collectively, “Plaintiffs”), allege that Yahoo’s operation of its Yahoo Mail service violates the Stored Communications Act (“SCA”) and California’s Invasion of Privacy Act (“CIPA”). Plaintiffs filed a motion for class certification on February 5, 2015. ECF No. 60 (“Mot.”). For the reasons stated below, the Court GRANTS in part and DENIES in part Plaintiffs’ motion for class certification.

I. BACKGROUND

A. Factual Background

Plaintiffs are four individuals representing a class of individuals who do not use Yahoo’s email service (“Yahoo Mail”) but have sent emails to Yahoo Mail subscribers from non-Yahoo email addresses. Compl. ¶¶ 15-18. Plaintiff Cody Baker is a resident of New York. Id. ¶ 15. Plaintiff Halima Nobles is a resident of Texas. Id. ¶ 17. Plaintiff Brian Pincus and Plaintiff Rebecca Abrams are residents of California. Id. ¶¶ 16,18. Yahoo is a Delaware corporation with headquarters in Sunnyvale, California. Id. ¶ 19.

Plaintiffs allege Yahoo’s practices while operating Yahoo Mail violate state and federal wiretapping laws. Id. ¶¶ 5-7. In their motion for class certification, Plaintiffs seek in-junctive and declaratory relief on behalf of a class of non-Yahoo Mail subscribers.1 Id. ¶ 7. Plaintiffs’ proposed class consists of all persons in the United States who are not Yahoo Mail subscribers and who sent emails to or received emails from a Yahoo Mail subscriber between October 2, 2011 and the present. Id. ¶ 97.

1. Yahoo Mail and Yahoo’s Use of Scanned Emails

Yahoo operates Yahoo Mail as a free web-based email service. Id. ¶¶ 20-23. More [583]*583than 275 million subscribers have registered for Yahoo Mail to create @yahoo.eom, @ymail.com, or @rocketmail.com email addresses. Id. ¶¶ 20-21. Before signing up for a Yahoo Mail account, potential subscribers must provide Yahoo with personal information such as their name, birthday, telephone number, and account information. Id. ¶ 31.

In order to provide Yahoo Mail as a free email service to subscribers, Yahoo charges advertisers to display advertisements on Yahoo Mail webpages. Id. ¶ 23. Roughly 75% of Yahoo’s revenue in 2013 came from advertising. Id. ¶ 28. Plaintiffs allege Yahoo can increase its revenues by charging advertisers higher rates to display targeted advertisements to Yahoo Mail subscribers. Id. Thus, Yahoo has a financial incentive to scan and store email content to allow advertisers to target individuals based on certain personal characteristics. Id.

The instant dispute concerns Yahoo’s interception, scanning, and storage of Yahoo Mail subscribers’ incoming and outgoing emails for content, specifically the content of emails to and from non-Yahoo Mail subscribers with whom Yahoo Mail subscribers communicate. Plaintiffs allege Yahoo intercepts and scans Yahoo Mail subscribers’ emails [redacted]. Mot. at 3. Yahoo allegedly copies the entirety of the email, “extracts keywords from the body of the email, reviews and extracts links and attachments, and classifies the email based on its content.” Id. Yahoo also “subjects the copied email and extracted information to additional analysis to create targeted advertising for its subscribers, and stores it for later use.” Id.

According to Plaintiffs,2 Yahoo’s scanning and analysis processes have “steadily expanded” since 2010, with “the goal of increasing revenue from advertisers, reducing costs to Yahoo, and providing user features that Yahoo believes keep it competitive in the marketplace.” Id. (citing Girard Deck, EOF No. 60, Exh. 1 (“Doron Depo.”), at 37:8-38:5, 41:3-42:10, 53:25-55:10, and Declaration of Robert Sherwood, EOF No. 60-15, (“Sherwood Deck”), at ¶ 17). Consequently, Yahoo frequently tests and modifies its scanning and analysis processes. Mot. at 3. Among other things, Yahoo scans its subscribers’ emails for spam, links, attachments, data on online shopping and purchase behavior, and other keywords for further analysis. Id.; Doron Depo. at 23:23-25:1, 29:4-32:18, 41:3-42:10, 44:15-45:14; Sherwood Deck ¶¶ 9-21.

As Plaintiffs describe it, Yahoo intercepts, scans, and copies email [redacted], which then triggers the additional scanning and analyses that Yahoo conducts. Mot. at 4; Sherwood Deck ¶¶ 9-13; Doron Depo. at 38:19-40:23, 74:5-75:11. More specifically, when a non-Yahoo Mail subscriber sends an email to a Yahoo Mail subscriber, the email is “transmitted through the internet until it reaches Yahoo’s Mail Transfer Agent” (“MTA”). Doron Depo. at 65:9-66:8; Sherwood Deck ¶ 10. The MTA performs “specific actions that are unrelated to the transmission of email.” Mot. at 4 (citing Doron Depo. at 24:4-26:20, 44:15-45:2, 65:7-66:24, 73:23-76:1, 102:13-105:20; Ex. 4 at YAH00068107; Ex. 12 at YAH00011472; Sherwood Deck at ¶¶ 10-13). These actions include assigning the email [redacted] that can be used for advertising purposes, time-stamping the email, and “copying the entire message— including the date, time, sender, recipients, subject line, and body of the email — [redacted]” Id.

The copied data is transmitted through the “[redacted] to the “[redacted] for further analysis. Id. (citing Doron Depo. at 49:7-24; Ex. 9 at YAH00011490; Sherwood Deck, Ex. 1 at ¶ 13). The “[redacted] is a [redacted] Id. The “[redacted] is a “series of computers that analyze the content and data collected from the email for various purpose.” Id. Yahoo uses [redacted] and [redacted] technology to scan and extract information from Yahoo Mail subscribers’ “commercial email,” e.g., online shopping receipts and travel confirmations. Mot. at 5 (citing Doron Depo. at 16:16-17:3, 27:18-35:13, 68:18-69:1; Exh. 12; Exh. 15; Exh. 32; Sherwood Deck ¶ 19).

In addition to scanning and extracting information from commercial emails, Yahoo [584]*584scans and indexes keywords from its subscribers’ personal emails using processes called “[redacted],” which allow subscribers to search their email. Id. This process, while not technically necessary to deliver or send email, is an additional feature meant to attract subscribers. Id. “[redacted] is a new technology that Yahoo has begun using to “harvest[] the keywords extracted by [redacted]” to use in Yahoo’s advertising efforts, Id. Using [redacted] Yahoo can extract information from emails between Yahoo Mail subscribers and putative class members in order to display targeted advertising to Yahoo Mail subscribers. According to internal Yahoo emails, [redacted]” Girad Deck, Exh. 42 (YAH00071993). Additionally, Yahoo acknowledges on its “Frequently Asked Questions” page that its scanning technology “looks for patterns, keywords, and files” and that Yahoo shares “specific objects from a message” with certain third parties. Mot. at 6 (citing Girard Deck, Exh. 24).

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