S. v. Selectquote Insurance Services

District Court, S.D. California·Decided August 19, 2024·No. 3:23-cv-02258·Unknown

Opinion

A.S., individually and on behalf of all Case No.: 3:23-cv-02258-RBM-MSB others similarly situated, et al., ORDER GRANTING DEFENDANT’S Plaintiffs, v. [Doc. 6] SELECTQUOTE INSURANCE SERVICES, Defendant.

Pending before the Court is Defendant SelectQuote Insurance Services’ (“Defendant”) Motion to Dismiss Plaintiffs A.S., D.G., M.F., and T.M.’s (“Plaintiffs”) Class Action Complaint (“Motion”), which was filed on February 12, 2024. (Doc. 6.) On March 25, 2024, Plaintiffs filed an Opposition to Defendant’s Motion (“Opposition”). (Doc. 7.) On April 1, 2024, Defendant filed a Reply Brief in Support of Defendant’s Motion (“Reply”). (Doc. 8.) The Court finds this matter suitable for determination without oral argument pursuant to Civil Local Rule 7.1(d)(1). For the reasons set forth below, Defendant’s Motion is GRANTED. A. Plaintiffs’ Complaint On December 11, 2023, Plaintiffs filed a Class Action Complaint (“Complaint”) against Defendant, alleging causes of action for (1) violations of the California Invasion of Privacy Act (“CIPA”), California Penal Code § 631 (Count I); (2) violations of the CIPA, California Penal Code § 632 (Count II); (3) violations of the Maryland Wiretapping and Electronic Surveillance Act, Maryland Code, Courts and Judicial Proceedings § 10-401, et seq. (Count III); (4) violations of the Massachusetts Wiretapping Statute, Massachusetts General Laws chapter 272 § 99 (Count IV); (5) violations of the Massachusetts Unfair and Deceptive Business Practices Act, Massachusetts General Laws chapter 93A, et seq. (Count V); and (6) violations of the Florida Security of Communications Act, Florida Statute § 934.01, et seq. (Count VI).1 (Doc. 1 (“Compl.”) ¶¶ 46–110.) B. General Allegations In their Complaint, Plaintiffs allege that “[t]his is a class action suit brought on behalf of all persons who [visited Defendant’s website] and received a quote for a life insurance policy.” (Compl. ¶ 1.) Plaintiffs allege that Defendant lets prospective customers receive a life insurance quote by completing a questionnaire that asks for sensitive information, including personal identifying information (e.g., name, email, mailing address, zip code, and phone number), demographic information (e.g., date of birth, gender, state of residency), medical diagnoses and conditions (e.g., cancer, high blood pressure, and diabetes), social habits (e.g., smoking), height, weight, family health history, and financial information (e.g., annual individual income). (Id. ¶¶ 3, 5, 16, 18, 20–24.) Prospective customers communicate their answer by inputting the information and then pressing

1 In their Opposition, Plaintiffs withdraw their claim for violations of the Massachusetts Unfair and Deceptive Business Practices Act (Count V). (Doc. 7 at 9 n.2.) Therefore, the “next.” (Id. ¶ 26.) Plaintiffs allege that Defendant’s website promises that its site and these entries are “100% secure” and that it will “never sell your information.” (Id. ¶¶ 3, 26.) Plaintiffs then allege that Defendant has “built its website to allow third parties to surreptitiously intercept the information they input.” (Id. ¶ 16.) Plaintiffs also allege that “[Defendant] assists third parties with intercepting every[ ]one of those communications” (id. ¶ 27); that “Defendant shares highly sensitive information with several third parties” (id. ¶ 4); that Defendant “commoditizes and trades” Plaintiffs’ health information (id. ¶ 6); and that “[Defendant] aided, agreed with, and conspired with third parties to track and intercept Plaintiffs’ and Class member’s internet communications while receiving a quote through [Defendant] website” (id. ¶ 51). Plaintiffs appear to allege that the third parties, including LeadID and Facebook, use computer codes, programs, web, ad-servers, and/or tracking technology to intercept Plaintiffs’ communications. (Id. ¶¶ 53, 85, 110.) In support of these allegations, Plaintiffs purport to attached figures showing “network traffic to Facebook and LeadID when a user clicks the button on Defendant’s website indicating that they have issues with alcohol or substance abuse[.]” (Id. ¶ 28.) Plaintiffs then allege that “Facebook and LeadID then leverage this information to target advertisements.” (Id. ¶ 29.) Plaintiffs allege that Facebook allows companies like Defendant to integrate software into their websites that track user activity, like the buttons they click or the forms they complete. (Id. ¶ 30.) The software then relays the information to Facebook, who “assimilates it into existing datasets that Defendant can then use to target advertisements.” (Id.) Likewise, Plaintiffs allege that LeadID is an “interactive direct marketing company,” touting its ability to “target audience[s] effectively.” (Id. ¶ 31 (citations omitted.) “Once LeadID intercepts Plaintiffs’ communications, the company assimilates that information into audiences that Defendant then uses to run advertisements.” (Id.) Plaintiffs allege that they have suffered broken promises, intrusions into their privacy, violations of their rights of privacy, and the loss of value in their personally identifiable information. (Id. ¶¶ 7, 54, 72.) Plaintiffs seek an injunction preventing Defendant from perpetrating these abuses on future unsuspecting consumers.2 (Id. ¶ 7.) C. Subclass-Specific Allegations 1. Plaintiff A.S. and the California Subclass (Counts I and II) “Plaintiff A.S. seeks to represent a subclass of all Class members in California who accessed [Defendant’s website] and received a quote for life insurance (the ‘California Subclass’).” (Id. ¶ 36.) “Plaintiff A.S. is domiciled in Sylmar, California. While in California, in November 2022, Plaintiff applied for life insurance through [Defendant’s] website. While applying for life insurance, Plaintiff provided [Defendant] with his name, date of birth, gender, and email address. Plaintiff also provided [Defendant] with health information, including that he was diagnosed with depression and anxiety. Unbeknownst to Plaintiff, [Defendant] assisted third parties with intercepting this sensitive information.” (Id. ¶ 10.) 2. Plaintiff D.G. and the Maryland Subclass “Plaintiff D.G. seeks to represent a subclass of all Class members in Maryland who accessed [Defendant’s website] and received a quote for life insurance (the ‘Maryland Subclass’).” (Id. ¶ 33.) “Plaintiff D.G. is domiciled in Elkridge, Maryland. While in Maryland, in August 2023, Plaintiff applied for life insurance through [Defendant’s] website. While applying for life insurance, Plaintiff provided [Defendant] with his name, date of birth, gender, and email address. Plaintiff also provided [Defendant] with health information, including that he has been diagnosed with cancer, diabetes, and high blood pressure. Unbeknownst to Plaintiff, [Defendant] assisted third parties with intercepting this sensitive information.” (Id. ¶ 8.)

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S. v. Selectquote Insurance Services, (S.D. Cal. 2024).

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