Rojas-Lozano v. Google, Inc.

159 F. Supp. 3d 1101, 2016 U.S. Dist. LEXIS 13076, 2016 WL 429794
CourtDistrict Court, N.D. California
DecidedFebruary 3, 2016
DocketCase No. 15-cv-03751-JSC
StatusPublished
Cited by17 cases

This text of 159 F. Supp. 3d 1101 (Rojas-Lozano v. Google, 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
Rojas-Lozano v. Google, Inc., 159 F. Supp. 3d 1101, 2016 U.S. Dist. LEXIS 13076, 2016 WL 429794 (N.D. Cal. 2016).

Opinion

ORDER GRANTING GOOGLE’S MOTION TO DISMISS UNDER RULE 12(B)(6) FOR FAILURE TO STATE A CLAIM

JACQUELINE SCOTT CORLEY, United States Magistrate Judge

“CAPTCHAS,” typically distorted words that website visitors are required to identify before accessing certain internet services, are ubiquitous. Their stated purpose is to ensure that the website user is a human. Google’s reCAPTCHA program sometimes requires the user to transcribe two words. The first word serves the security purpose, but Google utilizes the user’s transcription of the second to assist with Google’s digitalization of books; in effect, Google is “crowd sourcing” the transcription of words that a computer cannot decipher. This lawsuit alleges that Google does so without disclosing this purpose to the human user.

Now pending before the Court is Google’s Motion to Dismiss Plaintiffs First Amended Complaint (“FAC”). (Dkt. No. 52.) The gravamen of the question presented is whether Google’s failure to disclose the true purpose of the user’s transcription of the second word is unfair, fraudulent or otherwise illegal. After carefully considering the parties’ submissions, including their supplemental briefs, and having had the benefit of oral argument on December 10, 2015, the Court GRANTS the motion.1 The parties’ choice of California law bars Plaintiffs Massachusetts claim, and the California state law claims fail as a matter of law.

ALLEGATIONS OF THE COMPLAINT

Google, a Delaware corporation headquartered in Mountain View, California, earns some of its revenue from transcribing books, newspapers, photographs, and other images. (FAC ¶ 5, 24.) Some of these transcriptions are done for paying third parties such as the New York Times. (Id.) Some, Google uses for its own Google Books or Google Maps. (Id. ¶¶ 5, 25-26.) Google then profits from the ads displayed to users who visit Google Books or Google Maps. (Id.) To transcribe these texts, Google uses optical character recognition (“OCR”) technology; however, OCR does not always capture all of the words or numbers in an image. (Id. ¶ 21.) Those missed characters require human review. (Id.)

Instead of employing people to review those missed words, Google uses a program that already required users to view and transcribe distorted images: reCAPT-CHA, Google’s version of a Completely [1107]*1107Automated Public Turing test to tell Computers and Humans Apart (“CAPTCHA”). (Id. ¶¶ 13, 16, 22.) As the name suggests, CAPTCHAs are website security features that seek to distinguish humans visiting a website from automated programs. CAPT-CHAs make this distinction by presenting a website visitor with the distorted image of letters, numbers, or words that the user must then correctly transcribe into a box before proceeding to the website. (Id. ¶¶ 13-14.) A user may be asked to transcribe anything from “MY5N5,” “6345262” or words like “Sample” or “Wills.” (Id. ¶¶ 18, 23, 26.) The prompt may also tell users that completion of the prompt is “necessary to prevent automated signups” or to prove users are “not a robot.” (Id. ¶ 53.) Humans are usually able to view the distorted images and recognize their contents: automated programs cannot. (Id. ¶ 14.) Google is the dominant provider of CAPTCHA technology, and reCAPTCHA customers include Facebook, TicketMas-ter, and Craigslist. (Id. ¶ 16.)

While most CAPTCHA programs present only one word or phrase, reCAPTCHA sometimes requires users to transcribe two words. (Id. ¶ 18.) The first word in those prompts is known to Google and serves a security purpose. (Id. ¶¶ 3, 19.) The second word or phrase is one that Google’s OCR technology failed to recognize and serves no security purpose. (Id.) The unknown word is presented to users multiple times until the responses all point to one transcription. (Id. ¶¶ 22-23.) Then, Google updates its transcription of the source. (Id.)

Plaintiff, a Massachusetts resident, encountered a two word reCAPTCHA prompt in the process of signing up for a Gmail account in August 2014. (Id. ¶ 8.) She was “required ... to respond.” (Id.). The complaint does not detail what she saw when she completed the prompt or what she understood the purpose of the prompt to be.

PROCEDURAL BACKGROUND

Plaintiff filed her complaint in the District of Massachusetts on January 22, 2015. (Dkt. No. 1.) Google responded with a motion to dismiss or ‘transfer, relying on the Terms of Service Plaintiff accepted when signing up for her Gmail account. (Dkt. No. 12; Dkt. No. 31 at 4-5; Dkt. No. 52 at 7-8.2) The Terms of Service contained the following forum selection and choice of law clause:

The laws of California, U.S.A., excluding California’s conflict of laws rules, will apply to any disputes arising out of or relating to these terms or the Services. All claims arising out of or relating to these terms or the Services will be litigated exclusively in the federal or state courts of Santa Clara County, California, USA, and you and Google consent to personal jurisdiction in those courts.

(Dkt. No. 52 at 8.) The District of Massachusetts, over Plaintiffs objection, found the Terms of Service applied to her claim and transferred the case to the Northern District of California in August 2015 while declining to rule on the motion to dismiss. (Dkt. No. 31.) Two days before this Court was scheduled to hear the still pending motion to dismiss, the parties filed a stipulation allowing Plaintiff to amend her complaint. (Dkt. No. 48.)

Plaintiffs FAC alleges four causes of action: (1) unfair and deceptive acts and practices in violation of Massachusetts General Law Chapter 93A, (2) unfair or deceptive acts or practices in violation of California’s Consumers Legal Remedies [1108]*1108Act (“CLRA”), (3) unlawful or unfair business practices in violation of California’s Unfair Competition Law (“UCL”), and (4) quasi-contract or unjust enrichment. (FAC ¶¶ 42-75.) Plaintiff brings the FAC as a putative class action under Federal Rule of Civil Procedure 23 with two proposed classes: a “Massachusetts Class”3 and a “Nationwide Class.”4 Plaintiff seeks monetary damages, including double or treble damages, statutory damages, interest, as well as restitution, attorney’s fees, and expenses. (Id. at 16.) In sum, Plaintiff alleges that Google does not tell users that it profits from the reCAPTCHA prompt transcriptions, and that by misrepresenting or omitting that fact, Google extracts free labor from users. (Id. ¶¶ 22, 27-29.) Google responded with the present motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6). (Dkt. No. 52.)

LEGAL STANDARDS

A motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) challenges the sufficiency of the complaint where the action fails to allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct.

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Bluebook (online)
159 F. Supp. 3d 1101, 2016 U.S. Dist. LEXIS 13076, 2016 WL 429794, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rojas-lozano-v-google-inc-cand-2016.