Kellman v. Spokeo, Inc.

District Court, N.D. California·Decided April 19, 2022·No. 3:21-cv-08976·Unknown

Opinion

AVIVA KELLMAN, et al., Case No. 3:21-cv-08976-WHO

Plaintiffs, ORDER DENYING MOTION TO v. DISMISS

SPOKEO, INC., Re: Dkt. Nos. 23, 24 Defendant.

Defendant Spokeo, Inc. (“Spokeo”) runs a website that provides information about particular individuals aggregated from various sources. To advertise paid subscriptions to the site, Spokeo uses “teasers”—profiles of real people with some information redacted. The plaintiffs in this putative class action claim that, when Spokeo used teasers of them, it violated their rights of publicity and appropriated their names and likenesses in violation of California, Ohio, and Indiana law. Spokeo moves to dismiss on numerous grounds; its motion is denied. District courts have come out on both sides of many of the issues here, but I conclude that the plaintiffs’ claims are actionable. The plaintiffs have Article III standing to sue for these alleged violations. They have adequately pleaded that their names, likenesses, and related information have commercial value and were being used for a commercial purpose. The teasers are not subject to statutory exceptions for newsworthiness or public interest information. Spokeo is not immune from liability under the Communications Decency Act. Enforcing these rights does not violate the dormant Commerce Clause. And Spokeo’s alleged conduct is not shielded by the First Amendment. Spokeo is a corporation with its principal place of business in California. Complaint (“Compl.”) [Dkt. No. 1] ¶ 20. According to the Complaint, Spokeo owns and operates a website (www.spokeo.com) that aggregates online information about individuals. See id. ¶¶ 2–15. The plaintiffs allege that Spokeo uses individuals’ “names, personal information, photographs, likenesses, and personas” in online advertisements. Id. ¶ 2. The named plaintiffs—Aviva Kellman, Jason Fry, and Nicholas Newell—each allege that Spokeo used their names and other information in this way. See id. ¶¶ 2–3, 38–85. Specifically, Spokeo advertises its website by displaying “teaser profiles” of individuals that can include “names; ages; current and past cities of residence; partially redacted addresses, emails, and phone numbers; and other personal information” and sometimes photographs. Id. ¶ 4. The “teaser” then states that Spokeo “possesses additional information” including “‘Criminal Records’; ‘Sex Offenses’; ‘DUIs’; ‘details about birth, marriage, and divorce’; ‘Relationship Status’; ‘Location History’; ‘Estimated Salary’; ‘Family Members’; and redacted ‘Full Address[es]’; ‘Email Address[es],’ and ‘Phone Number[s].’” Id. ¶ 5 (alterations in Complaint). The teasers state that a user will receive access to the “full profile” of the individual if they purchase a subscription (for $24.95 per month). Id. ¶ 6. The plaintiffs claim that Spokeo also advertises that a user will be charged 95 cents for access to a specific profile, but that fine print “reveals” that this purchase also comes with a full membership that begins billing after a one-week free trial. Id. ¶ 7. These memberships, the plaintiffs allege, give users access to profiles on “hundreds of millions of individuals” that incorporate data from “over 12 billion records” from “thousands of data sources.” Id. ¶ 8. They include things like contact information, location history, photos, social media accounts, lists of family members, court records, employment information, “and much more.” Id. And users can track specific individuals and receive notifications when their information changes. Id. ¶ 9. The profiles and ads are “sole[ly]” authored and created by Spokeo; none of them contain user-generated content. Id. ¶ 10. 1 information.” Id. § 11. They do know that Spokeo states that it collects the information “from a 2 large variety of public online and offline sources” like property records, consumer reports, court 3 records, unspecified “business records,” and social networks. Id. The plaintiffs claim that they 4 may have shared this information “with certain companies or the government in a variety of 5 contexts,” such as when making a credit card purchase or creating a social media profile. Id. § 14. 6 But, they say, they “did not consent to the commercial use of their personal information and 7 personas to promote subscriptions to a website with which they have no relationship.” Id. § 15. 8 Each of the plaintiffs alleges that he or she was harmed by Spokeo’s business practices. 9 None of them used or subscribed to Spokeo’s services. See id. fj 25, 29, 33. Yet each of their 10 information was used in one of Spokeo’s “teaser profile” ads. Id. J] 26, 30, 34. In each case, 11 Spokeo publicly displays information about the plaintiff, some of it redacted. /d. But, like the 12 teasers discussed above, it also claims to have additional information about each plaintiff. In 13 particular, the plaintiffs claim that their names, information, and likenesses were associated on the 14 teasers with Spokeo having information about things like “employment history,” “photos and 15 videos,” “marital status,” and “historical records.” Id. J] 28, 32, 36. And it also states to have 16 information about “arrests,” “felonies,” and “court records.” Jd. Spokeo advertises that 3 17 purchasing a membership will give access to the full information about each plaintiff. □□□

Z 18 To take one representative example, the Complaint includes a screenshot of the teaser 19 profile for Kellman: 20 O70 so . om 2] Aviva Shira Kellman, Age 41

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6 =<... Steed | % reeves creas | ee 7 8 9 Id. 440. The blurred redactions of certain information exist that way in the teaser. Id. As the 10 plaintiffs point out, the “court records” section states that it “may” include “arrests,” “traffic 11 violations,” “sex offenders,” and “felonies.” Id. §] 41. If a user wishes to sign up for a paid 12 membership, the webpages that they use to do so likewise include Kellman’s name and 13 information (or the name and information of whichever person the user was viewing as a teaser). 14 1d. 99,45, 46. 15 The other named plaintiffs’ names and information are used in materially identical ways by 16 Spokeo. See id. §§ 56, 72. Fry’s also includes a picture of him. See id. ]56. Each named 17 plaintiff alleges that he or she has not committed a felony and is not a sex offender. Id. □□ 48, 65, 18 81. 19 The plaintiffs filed suit in this court in November 2021, claiming jurisdiction under the 20 Class Action Fairness Act. They seek to represent a nationwide class of “[a]ll people in the United 21 States who are not Spokeo members and whose names and personal information Spokeo 22 incorporated in teaser profiles used to promote its Spokeo memberships.” Jd. § 86. And they seek 23 to represent two subclasses, one of Indiana residents and one of Ohio residents. Id. (Newell is a 24 || citizen of Ohio and Fry is a citizen of Indiana. Id. {| 29, 33.) They bring seven claims: (1) 25 violation of California’s right of publicity statute, Cal. Civ. Code § 3344; (2) appropriation of a 26 name or likeness under California law; (3) violation of Indiana’s right of publicity statute, Ind. 27 Code § 32-36-1; (4) appropriation of a time or likeness under Indiana law; (5) violation of Ohio’s 28 right of publicity statute, Ohio Rev. Code § 2741; (6) appropriation of a name or likeness under

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Kellman v. Spokeo, Inc., (N.D. Cal. 2022).

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