Pemberton v. Restaurant Brands International, Inc.

CourtDistrict Court, N.D. California
DecidedSeptember 5, 2025
Docket3:25-cv-03647
StatusUnknown

This text of Pemberton v. Restaurant Brands International, Inc. (Pemberton v. Restaurant Brands International, Inc.) 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
Pemberton v. Restaurant Brands International, Inc., (N.D. Cal. 2025).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 DANIEL PEMBERTON, individually, and Case No. 25-cv-03647-JSC on behalf of all others similarly situated, 8 Plaintiff, ORDER RE: MOTION TO COMPEL 9 ARBITRATION, AND IN THE v. ALTERNATIVE, FOR LIMITED 10 DISCOVERY PRIOR TO RESOLVING RESTAURANT BRANDS THE MOTION TO COMPEL 11 INTERNATIONAL, INC. and RESTAURANT BRANDS Re: Dkt. No. 11 12 INTERNATIONAL US SERVICES LLC, Defendants. 13

Plaintiff seeks to represent a class of people who browsed the Burger King website while 14 in California “after opting out of the sale/sharing of their personal information in the [website’s] 15 cookies consent preferences window.” (Dkt. No. 1 ¶ 99.)1 He alleges Defendants, who own and 16 operate the Burger King website, deceive users because “when users moved the toggle to opt out 17 of the sale/sharing of their personal information and opt out of all cookies, except those that were 18 strictly necessary, including targeting cookies and performance cookies, Defendants nonetheless 19 continued to cause [] Third Parties’ cookies to be placed on users’ devices and/or transmitted to [] 20 Third Parties along with user data.” (Id. ¶¶ 27, 40.)2 Now pending before the Court is 21 Defendants’ motion to compel arbitration and, in the alternative, for limited discovery prior to 22 resolving the motion to compel. (Dkt. No. 11.) Having carefully considered the parties’ 23 submissions, and with the benefit of oral argument on September 4, 2025, the Court DENIES 24 25

26 1 Record citations are to material in the Electronic Case File (“ECF”); pinpoint citations are to the ECF-generated page numbers at the top of the documents. 27 2 Plaintiff defines “Third Parties” as Google LLC (DoubleClick and Google Analytics), Meta 1 Defendants’ motion to compel arbitration and for limited discovery. Defendants concede the 2 record does not support a finding Plaintiff agreed to the website’s Terms of Service, and they have 3 not shown Plaintiff waived his right to challenge or estopped himself from challenging the 4 existence of an arbitration agreement by asking an arbitrator to determine he never agreed to 5 arbitrate disputes with Defendants. Defendants also have not identified any facts to warrant 6 discovery on the existence of an arbitration agreement. 7 BACKGROUND 8 I. COMPLAINT ALLEGATIONS 9 Plaintiff Daniel Pemberton is a California resident. (Dkt. No. 1 ¶ 6.) Around March 2023, 10 Plaintiff visited the Burger King website. (Id. ¶ 84.) The website “immediately” presented a 11 popup cookie consent banner (“Cookie Banner”) offering Plaintiff the options “Accept Cookies” 12 or “Cookie Settings.” (Id. ¶ 85.) After Plaintiff clicked the “Cookie Settings” button, the website 13 displayed a “cookie consent preferences window” (“Cookie Window”), which included a toggle 14 switch and stated: “You may exercise your right to opt out of the sale of personal information by 15 using this toggle switch. If you opt out we will not be able to offer you personalized ads and will 16 not hand over your personal information to any third parties.” (Id. ¶¶ 36, 86.) Plaintiff moved the 17 toggle switch to opt out, and clicked a “Confirm my Choices” button. (Id. ¶ 86.) Believing the 18 steps he had taken “would allow him to opt out of, decline, and/or reject all non-required cookies 19 and other tracking technologies,” Plaintiff continued to browse the website. (Id. ¶¶ 86, 89.) 20 According to Plaintiff, “Defendants nonetheless continued to cause the placement and/or 21 transmission of cookies along with user data, including those that cause the disclosure of user data 22 to the Third Parties on his device, . . . [which] permitted the Third Parties to track and collect 23 Plaintiff’s Private Communications as Plaintiff browsed the Website.” (Id. ¶ 89.) 24 II. PROCEDURAL HISTORY 25 Around October 20, 2023, Plaintiff learned about Defendants’ alleged conduct from his 26 counsel. (Id. ¶ 92.) A few weeks later, Plaintiff’s counsel notified Defendants of Plaintiff’s 27 allegations and claims. (Id. ¶ 93.) Defendants then asserted Plaintiff’s claims were subject to 1 Service’s arbitration provision was inapplicable to Plaintiff’s claims because “Plaintiff did not 2 take any action to manifest his assent” to the Terms of Service. (Id. ¶ 94.) 3 On November 13, 2023, Plaintiff filed a demand for arbitration with the American 4 Arbitration Association. (Dkt. No. 11-1 at 19–20.) In the demand form, Plaintiff explained his 5 dispute with Defendants as: “See attached arbitration demand; claimant challenges the arbitrability 6 of this dispute on behalf of [him]self and others similarly situated.” (Id.) Plaintiff alleges his 7 arbitration demand provided Defendants notice of his claims, his refusal to assent to the Terms of 8 Service, his belief the arbitration provision was unenforceable against him, and his intent to pursue 9 a class action in court “should the arbitrator determine that his claims were not subject to 10 arbitration.” (Dkt. No. 1 ¶¶ 95–96.)3 In addition, because the demand form asked filers to attach a 11 “clear, legible copy of the contract containing the parties’ agreement to arbitrate disputes,” 12 Plaintiff attached the website’s Terms of Service. (Dkt. No. 11-1 at 20; Dkt. No. 11 at 12.) 13 Plaintiff then filed a Motion re Non-Arbitrability, which argued the website’s arbitration provision 14 was unenforceable against him and he was entitled to pursue his claims in court. (Dkt. No. 1 ¶ 15 96.) Defendants opposed Plaintiff’s motion and argued Plaintiff consented to arbitration by 16 voluntarily initiating arbitration and, unless the arbitrator found Plaintiff waived his objections to 17 arbitrability, the arbitrator lacked authority to determine whether an arbitration agreement existed. 18 (Dkt. No. 11 at 13.) 19 On July 9, 2024, the arbitrator ruled a federal court needed to decide whether an arbitration 20 agreement existed, but Plaintiff had not waived his right to challenge an arbitration agreement’s 21 existence by initiating arbitration. (Dkt. 11-1 at 44–45.) The arbitrator placed the arbitration on 22 administrative hold pending a court’s determination of whether an enforceable arbitration 23 agreement existed. (Id.) 24 Nearly ten months later, Plaintiff filed a complaint on behalf of a California class including 25 claims for (1) invasion of privacy, (2) intrusion upon seclusion, (3) wiretapping in violation of the 26

27 3 While Defendants included the arbitration demand “form” with their motion to compel, they did 1 California Invasion of Privacy Act (Cal. Penal Code § 631), (4) use of a pen register in violation 2 of the California Invasion of Privacy Act (Cal. Penal Code § 638.51), (5) common law fraud, 3 deceit, and/or misrepresentation, (6) unjust enrichment, and (7) trespass to chattels. (Dkt. No. 1 ¶¶ 4 107–86.) Pending before the Court are Defendants’ motion to compel arbitration and motion to 5 dismiss the complaint. (Dkt. Nos. 11, 12.) 6 III. RELEVANT FACTS RE: TERMS OF SERVICE 7 The website’s Terms of Service include an arbitration provision. (Dkt. No. 11-1 at 28.) 8 Plaintiff attests when he visited the website in 2023, he “did not know that [his] continued use of 9 the website was subject to arbitration with Burger King,” he “did not see, or follow, a link on the 10 Website to the Terms of Service,” and he understood his only agreement with Burger King to be 11 “that [his] continued use of the Website would not be tracked.” (Dkt. No. 27-4 ¶¶ 2–3.) Plaintiff 12 also testifies he has “never ordered online from Burger King,” “downloaded a Burger King app,” 13 or “joined Burger King’s rewards program.” (Id. ¶ 4.) Plaintiff further alleges the website did not 14 display the Terms of Service when he went through the cookie opt-out process, and the Cookie 15 Banner and Cookie Settings windows do not include a click or check-box agreement to or mention 16 of the Terms of Service. (Dkt. No.

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Pemberton v. Restaurant Brands International, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/pemberton-v-restaurant-brands-international-inc-cand-2025.