MENDOZA v. CAESARS ENTERTAINMENT, INC.

CourtDistrict Court, D. New Jersey
DecidedMay 22, 2024
Docket1:23-cv-03591
StatusUnknown

This text of MENDOZA v. CAESARS ENTERTAINMENT, INC. (MENDOZA v. CAESARS ENTERTAINMENT, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MENDOZA v. CAESARS ENTERTAINMENT, INC., (D.N.J. 2024).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

GENARO MENDOZA,

Plaintiff, No. 23-cv-03591 v. OPINION CAESARS ENTERTAINMENT, INC.,

Defendant.

APPEARANCES: Kevin S. Riechelson Camille Joanne Rosca COHEN & RIECHELSON ORRICK, HERRINGTON & SUTCLIFFE LLP 3500 Quakerbridge Road, Ste. 203 51 W. 52nd St Hamilton, NJ 08619 New York, NY 10019 On behalf of Plaintiff On behalf of Defendant O’HEARN, District Judge. This matter comes before the Court upon a Motion to Dismiss filed by Caesars Entertainment, Inc. (“Defendant”), (ECF No. 13). For the following reasons, Defendant’s Motion is GRANTED. I. BACKGROUND Caesar’s Entertainment is a casino and entertainment company that owns and operates the website www.caesarscasino.com (“Defendant’s Website” or the “Website”). (Pl.’s Compl., ECF No. 1, ¶ 12). The Website offers online video games, such as virtual slots and roulette. (ECF No. 1, ¶¶ 13, 24). Users create accounts on the Website using their email address, name, gender, birthday, and other contact information. (ECF No. 1, ¶ 15). When users create accounts, they receive recurring communications, including emails from Defendant that include links to the Website. (ECF No. 1, ¶ 16). Defendant’s Website incorporates an analytics tool called Facebook Pixel into its code. (ECF No. 1, ¶ 21). Facebook Pixel transmits users’ Facebook IDs—unique electronic identifiers that connect users to their Facebook profiles—together with data regarding their activity on the

Website to Facebook. (ECF No. 1, ¶¶ 23, 25, 26). The combination of usage data and Facebook IDs allows Facebook to reconstruct specific users’ activity on the Website. (ECF No. 1, ¶ 52). Plaintiff first used his personal email address to sign in to Defendant’s Website in 2019 and regularly plays video games on the Website. (ECF No. 1, ¶¶ 45–47). Each time Plaintiff plays a video game on the Website, Defendant—through Facebook Pixel—discloses Plaintiff’s Facebook ID and the game he was playing to Facebook. (ECF No. 1, ¶ 23). Plaintiff never consented to disclosure of his information. (ECF No. 1, ¶ 53). II. PROCEDURAL HISTORY On July 5, 2023, Plaintiff filed a Class Action Complaint on his own behalf and on behalf of a putative class of users of Defendant’s Website, asserting a single claim against Defendant for

violation of the Video Privacy Protection Act (the “VPPA” or the “Act”). (ECF No. 1). Defendant filed the Motion to Dismiss now before the Court on October 2, 2023. (ECF No. 11). Plaintiff filed Opposition on October 24, 2024. (ECF No. 13). Defendant replied on October 30, 2024. (ECF No. 14). On April 3, 2024, Plaintiff submitted a Letter with supplemental authority. (ECF No. 18). III. LEGAL STANDARD A pleading is sufficient if it contains “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). In deciding a motion to dismiss, a district court asks “not whether a plaintiff will ultimately prevail but whether the claimant is entitled to offer evidence to support the claim.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 563 n.8 (2007) (quoting Scheuer v. Rhoades, 416 U.S. 232, 236 (1974)); see also Ashcroft v. Iqbal, 556 U.S. 662, 684 (2009) (“Our decision in Twombly expounded the pleading standard for ‘all civil actions”); Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir. 2009) (“Iqbal ... provides the final nail in the coffin for the ‘no set of facts’ standard that applied to federal complaints before Twombly.”).

In deciding a Rule 12(b)(6) Motion, the court may only consider the facts alleged in the pleadings, any attached exhibits, and any matters of judicial notice. S. Cross Overseas Agencies, Inc. v. Kwong Shipping Grp. Ltd., 181 F.3d 410, 426 (3d Cir. 1999). IV. DISCUSSION Plaintiff brings a single cause of action alleging that Defendant violated the VPPA by installing Facebook Pixel on its Website and using that application to transmit to Facebook data identifying which games he and other similarly situated parties played online. Congress passed the VPPA in 1988 to prohibit video cassette tape rental stores from disclosing to third parties which movies customers rented. See In re Nickelodeon Consumer Privacy Litigation, 827 F.3d 262, 279 (3d Cir. 2016) (describing the history and purpose of the VPPA). Congress intended the VPPA to

be flexible and acknowledged that changing technology would require courts to apply the Act to then-unforeseeable media. Louth v. NFL Enters., No. 21-405, 2022 WL 4130866, at *4 (D.R.I. Sept. 12, 2022) (surveying evidence that Congress intended the VPPA to apply to changing audio- visual technology). Indeed, Courts have since applied the VPPA to video streaming providers and other modern platforms that Congress could not have anticipated in 1988. See, e.g., In re Hulu Privacy Litig., No. 11–03764, 2012 WL 3282960, at *5 (N.D. Cal. Aug. 10, 2012) (hereinafter “In re Hulu (2012)) (finding the VPPA applies to an online video streaming service provider). However, in arguing that the Act applies to online casino games—a medium far attenuated from the video cassette tapes that motivated the Act’s original passage—Plaintiff urges an interpretation of the VPPA that stretches these flexible terms too far. And even if the Act did apply to Defendant’s Website, Plaintiff fails to allege that he meets the definition of a consumer of Defendant’s audio-visual offerings under the Act. Accordingly, the VPPA offers Plaintiff no relief under the facts alleged.

To state a claim under the VPPA, plaintiffs must show (1) the defendant is a “video tape service provider” who (2) “knowingly discloses . . . personally identifiable information” that (3) “concern[s] any consumer of such provider.” 18 U.S.C. § 2710(b)(1); see In re Nickelodeon, 827 F.3d at 279. Defendant moves to dismiss on the grounds that Plaintiff fails to plead facts satisfying any of these criteria. The Court agrees that Plaintiff fails to plead facts alleging Defendant is a video tape service provider under the VPPA. And while Plaintiff does sufficiently plead that Defendant knowingly disclosed his personally identifiable information to a third party, he fails to adequately plead that he is a consumer under the Act. Plaintiff has thus failed to state a claim upon which relief can be granted, and his Complaint must, therefore, be dismissed. A. Plaintiff Fails to Plead Sufficient Facts to Allege that Defendant is a Video Tape Service Provider Under the VPPA Plaintiff fails to plead sufficient facts to plausibly allege that Defendant is a video tape service provider under the VPPA. Specifically, Plaintiff fails to allege that Defendant’s online casino games are sufficiently akin to video tapes for the statute to apply to Defendant. The VPPA defines “video tape service provider” as an entity “engaged in the business . . . of rental, sale, or delivery of prerecorded video cassette tapes or similar audio-visual materials.”

18 U.S.C. § 2710(a)(4). Plaintiff does not allege that Defendant engages in the business of the rental, sale or delivery of prerecorded video cassette tapes.

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Related

Scheuer v. Rhodes
416 U.S. 232 (Supreme Court, 1974)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Fowler v. UPMC SHADYSIDE
578 F.3d 203 (Third Circuit, 2009)
Mark Ellis v. The Cartoon Network, Inc.
803 F.3d 1251 (Eleventh Circuit, 2015)
In Re Nickelodeon Consumer Privacy Litigation
827 F.3d 262 (Third Circuit, 2016)
In re Hulu Privacy Litigation
86 F. Supp. 3d 1090 (N.D. California, 2015)

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