Kramer v. Avis

District Court, S.D. California·Decided September 2, 2020·No. 3:19-cv-00421·Unknown

Opinion

DAVID KENT GREENLEY, individually Case No.: 19-CV-00421-GPC-AHG and on behalf of all others similar situated, ORDER GRANTING DEFENDANT’S MOTION TO DISMISS AND Plaintiff, REMANDING THE ACTION TO v. STATE COURT. AVIS BUDGET GROUP INC., a (ECF No. 56.) Delaware and New Jersey corporation Defendant. Before the Court is Defendant Avis Budget Group, Inc.’s (“Defendant”) motion to dismiss Plaintiff David Kent Greenley’s (“Plaintiff”) Third Amended Complaint (“TAC”). (ECF Nos. 38, 56.) Plaintiff alleges, in sum, that Defendant’s collection and storage of Plaintiff’s private information vis-à-vis the pairing of Plaintiff’s mobile phone to Defendant’s rental vehicle violates (1) the California Constitution, (2) California’s Rental Passenger Vehicle Transactions Law (“RPVTL”), and (3) California’s Unfair Competition Law (“UCL”). (ECF No. 38.) Defendant moves to dismiss the TAC asserting that Plaintiff lacks Article III standing to proceed and has, otherwise, failed to allege sufficient facts to support his three causes of action. (ECF No. 56.) Finding that Plaintiff lacks Article III standing, the Court GRANTS the motion as to all three causes of action and REMANDS this action to state court. I. Background A. Allegations in the Third Amended Complaint (“TAC”) Plaintiff alleges that Defendant failed to promulgate or maintain adequate policies and procedures to safeguard class members who rented a vehicle from Avis Rent a Car, Budget Rent a Car, and Payless Car Rental on a short-term basis between December 31, 2014 and the present. (ECF No. 38, TAC at ¶ 1.) Plaintiff alleges that Defendant collected renters’ information when they paired their smartphones or mobile devices with the vehicles’ GPS technology and/or automotive infotainment systems (collectively, the “Rental Technology”). (Id.) An infotainment system is “hardware and software in a vehicle that provides a combination of entertainment, communications, and information content to the driver or passengers.” (TAC at ¶ n.1.) Pairing is the process of connecting a device to the Rental Technology, which usually occurs by USB cables and/or Bluetooth technologies. (TAC at ¶ 25.) A paired device gains access to the various telephone, data, and multimedia functions of the Rental Technology, including the ability to automatically transfer calls between the device and the vehicle, and to download or upload preferences, contacts, calendar data, and other content from the Device. (TAC at ¶¶ 24, 27.) A renter with a paired device can also issue voice commands to make calls, play music, and operate the Rental Technology in other ways. (TAC at ¶ 28.) Once paired by Bluetooth technologies, the renter’s device connects with the Rental Technology every time it enters the vehicle. (TAC at ¶ 26.) Plaintiff asserts that, once paired, the rented vehicle can collect, copy, and/or transfer information from the device to the Rental Technology. (TAC at ¶ 29.) That information (collectively, the “Private Data”) includes (1) GPS history of past locations and points of interest; (2) device name / phone identifier; (3) personal information (including home address, if available); (4) contacts and address book; (5) calendar entries; (6) Internet search history and web browsing data; (7) call log or text/data messages if the consumer uses hands-free calling or texting; (8) other personal communications including email and social networking communications; (9) application log-in information, including music streaming login (such as Spotify or Pandora); (10) choice of music, radio, and other streamed audio or video content; and/or (11) Wi-Fi identifiers. (TAC at ¶ 3.) The Private Data then remains continuously stored on the Rental Technology unless purged through a manual deletion (often referred to as a “factory reset”). (TAC at ¶ 30.) Plaintiff alleges that Defendant refuses to conduct routine deletion of a renter’s Private Data when a vehicle is returned. (TAC at ¶ 4.) This creates the risk that any collected Private Data will remain on the vehicle and thus become accessible to subsequent renters of that vehicle, including potential identity thieves. (TAC at ¶¶ 5, 36.) Plaintiff alleges that Defendant does not adequately disclose that the Rental Technology will collect and indefinitely store Private Data if a device is paired. (TAC at ¶ 6.) Defendant has allegedly “failed to provide explicit notice/disclosure to consumers” of its collection and storage practices, or offered only unclear warnings, including by burying them in “small print.” (TAC at ¶ 31.) Plaintiff also alleges that Defendant “failed to promulgate or otherwise maintain responsible policies,” including the absence of any “mandatory routine data clearing/deletion of Private Data.” (TAC at ¶¶ 32, 33.) Plaintiff further alleges that Defendant’s inaction here “is inconsistent with Defendant’s other policies and procedures providing for routine physical maintenance (e.g., refueling, vacuuming, and washing)” after a vehicle is returned. (TAC at ¶ 34.) Rather, Defendant has allegedly taken the position that it is the consumer’s responsibility to remove their Private Data. (TAC at ¶ 35.) Plaintiff alleges that Defendant has thus created “substantial privacy risks” as to renters’ Private Data. (TAC at ¶ 37.) Lastly, Plaintiff makes additional allegations that are specific to his interactions with Defendant and which reflect the above-discussed conduct. Plaintiff alleges that he regularly rents vehicles from Defendant. (TAC at ¶¶ 8–11.) He paired his device with multiple rented vehicles during the alleged time period. (TAC at ¶ 12.) Thus, the Rental Technology collected and stored Plaintiff’s Private Data. (TAC at ¶ 13.) Plaintiff alleges on information and belief that Defendant has not deleted his information from the rental vehicles to date. (TAC at ¶¶ 14–15.) Plaintiff also makes a number of class-related allegations not at issue here. (TAC at ¶¶ 39–55.) B. Plaintiff’s Three Causes of Action 1. Violation of Article I, Section 1, of the California Constitution Plaintiff alleges that the class members have a legally protected interest in the Private Data. (TAC at ¶ 62.) Class members, moreover, “reasonably expected that their Private Data . . . would be kept private after they had returned their rental vehicles to Defendant.” (TAC at ¶ 63.) Thus, Plaintiff alleges that Defendant has committed a serious invasion of the Class’s privacy interests by, among other conduct, not deleting their Private Data from returned vehicles, as this is “an egregious breach of the social norms underlying the Class members’ right to privacy.” (TAC at 64.) Plaintiff also asserts that there are feasible “privacy safeguards for that Private Data” but “Defendant’s implementation of those safeguards is slipshod or nonexistent.” (TAC at ¶ 65.) Plaintiff alleges that Defendant could “easily” delete the Private Data during “routine maintenance” and that Defendant could accomplish its business objectives by alternative means having little or no impact on privacy interests. (TAC at ¶¶ 65, 66.) By failing to do so, Defendant has allegedly violated Plaintiff’s right to privacy, caused “emotional distress damages,” and been “unjustly enriched.” (TAC at ¶¶ 68.) Plaintiff seeks “injunctive relief, damages (including but not limited to consequential damages and out-of-pocket costs of identity theft insurance and credit monitoring), equitable monetary relief, and reasonable attorney’s fees and costs.” (TAC at ¶ 69.) / / / / / / 2. Violation of the RPVTL Plaintiff alleges that Defendant obtained the Class members’ Private Data in violation of Cal. Civ. Code § 1939.23. (TAC ¶ 76.) This statute provides that a “rental company shall not use access or obtain any information relating to the renter’s use of the rental vehicle that was obtained using electronic surveillance technology . . .” (TAC at ¶ 75.) Plaintif

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Kramer v. Avis, (S.D. Cal. 2020).

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