Salkauskaite v. Sephora USA, Inc.

CourtDistrict Court, N.D. Illinois
DecidedMay 30, 2020
Docket1:18-cv-08507
StatusUnknown

This text of Salkauskaite v. Sephora USA, Inc. (Salkauskaite v. Sephora USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salkauskaite v. Sephora USA, Inc., (N.D. Ill. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

AUSTE SALKAUSKAITE, individually and ) on behalf of similarly situated individuals, ) ) Plaintiff, ) ) No. 18-cv-08507 v. ) ) Judge Andrea R. Wood SEPHORA USA, INC. et al., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER

Plaintiff Auste Salkauskaite has brought this putative class action against Defendants Sephora USA, Inc. (“Sephora”) and ModiFace, Inc. (“ModiFace”), claiming that they violated the Illinois Biometric Information Privacy Act (“BIPA”), 740 ILCS 14/1 et seq., by using ModiFace’s technology to collect biometric information about customers’ facial geometry at kiosks in Sephora stores. Sephora answered the complaint. But ModiFace, a Canadian corporation, has moved to dismiss the claim against it for lack of personal jurisdiction. (Dkt. No. 37.) Salkauskaite opposes the motion but requests that, if the Court finds that it lacks personal jurisdiction over ModiFace, the Court transfer the case to the Northern District of California instead of dismissing the claim against ModiFace. For the reasons given below, the Court finds that it lacks personal jurisdiction over ModiFace, declines to transfer the case to the Northern District of California, and instead dismisses Salkauskaite’s claim against ModiFace without prejudice. BACKGROUND

When considering a motion to dismiss for lack of personal jurisdiction, any well-pleaded facts alleged in the complaint are taken as true and any factual disputes in the affidavits are resolved in the plaintiff’s favor. Tamburo v. Dworkin, 601 F.3d 693, 700 (7th Cir. 2010). The facts recited here are taken from Salkauskaite’s First Amended Complaint (“FAC”). The Court will address the affidavits and other evidence the parties attached to their briefs, to the extent appropriate, further below in discussing the parties’ arguments. See Purdue Research Found. v. Sanofi-Sunthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003). Salkauskaite is a resident of Illinois. (FAC ¶ 19, Dkt. No. 34.) Defendant Sephora is an American subsidiary of an international retailer of cosmetics. It is incorporated in Delaware and headquartered in California. (Id. ¶ 18; Notice of Removal ¶ 15, Dkt. No. 2.) Defendant ModiFace is both incorporated and headquartered in Ontario, Canada. (FAC ¶ 17; Notice of Removal ¶ 17.) Salkauskaite visited a Sephora store in Chicago, Illinois. (FAC ¶ 27.) That store had a feature called a Visual Artist Kiosk. (Id.) According to the FAC, a Visual Artist Kiosk captures

and stores biometric facial geometry information from Sephora’s customers. (Id. ¶ 26.) Once the kiosk captures a customer’s facial geometry, the customer can superimpose Sephora’s beauty products on his or her face. (Id.) Salkauskaite had her biometric information captured by the kiosk at the Sephora store she visited. (Id. ¶ 27.) She then provided her cellphone number and other personal information so that she could receive a text message with a scan of her face with Sephora’s beauty products imposed on it. (Id. ¶ 28.) Sephora subsequently disseminated Salkauskaite’s biometric information in an attempt to sell her products. (Id. ¶ 29.) Sephora did not inform Salkauskaite in writing that her biometrics were being collected, stored, used, or disseminated or publish a policy to that effect, and Salkauskaite did not provide her consent. (Id. ¶¶ 30–32.) Salkauskaite is not aware of whether Sephora still has her biometric information or whether it will retain that information. (Id. ¶ 33.) Sephora operated the Visual Artist Kiosks in its stores. But, according to the FAC, those kiosks use ModiFace’s biometric technology. (Id. ¶ 4.) Salkauskaite describes ModiFace’s business as “develop[ing] biometric collection devices and technology for its clients in the beauty

industry with the knowledge and intent that such devices and technology will be used to capture, collect, store, disseminate, and transfer the biometrics” of their clients’ customers. (Id. ¶ 22.) Salkauskaite further describes ModiFace as having “co-developed its biometric devices and technology with Defendant Sephora.” (Id. ¶ 23.) According to Salkauskaite, ModiFace services, updates, improves, and modifies its biometric technology deployed by Sephora in Illinois, and it has provided biometric devices and technology to other companies operating in Illinois. (Id. ¶¶ 24–25.) After her face was scanned at a Sephora store in Chicago, Salkauskaite brought a putative class action lawsuit against Sephora and ModiFace in Illinois state court. (See State Court Compl.,

Dkt. No. 2-2.) One count of that complaint arose under BIPA, 740 ILCS 14/1 et seq., and the other was a common law negligence claim. (Id. ¶¶ 43–61.) Sephora filed a notice of removal to this Court. (Notice of Removal at 1.) The basis asserted for removal was that the case met the requirements of the Class Action Fairness Act (“CAFA”), 28 U.S.C. §§ 1332(d), 1453(b). (Id. at 4–7.) Salkauskaite never challenged the removal under CAFA or moved to remand to state court. Instead, Salkauskaite filed the FAC, which includes one count against both Defendants with the BIPA claim but drops the negligence claim that she had included in the state-court complaint. (FAC ¶ 43–51.) In the FAC, Salkauskaite asks for class certification, declaratory and injunctive relief, statutory damages, attorneys’ fees and costs, and pre- and post-judgment interest. The proposed class would consist of all individuals who had their biometrics captured, collected, stored, used, transmitted, or disseminated by ModiFace’s technology in Illinois during the limitations period. (Id. ¶ 35.) There is also a proposed subclass composed of all individuals whose biometric were captured, collected, stored, used, transmitted, or disseminated by Sephora in

Illinois during the limitations period. (Id.) After Salkauskaite filed the FAC, ModiFace moved to dismiss the claim against it under Federal Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction. (Dkt. No. 37.) Salkauskaite and ModiFace conducted jurisdictional discovery. With their respective briefs, ModiFace attached as an exhibit a declaration from its Chief Executive Officer (“CEO”) and Salkauskaite attached as exhibits five discovery documents. (Dkt. Nos. 38-1, 50-1–50-5.) Salkauskaite opposes ModiFace’s motion to dismiss but also argues in the alternative that if the Court lacks personal jurisdiction over ModiFace, it should transfer the case to the Northern District of California rather than dismissing the claim against ModiFace.

DISCUSSION

BIPA governs how private entities must handle biometric identifiers and biometric information (collectively, “biometrics”). Salkauskaite claims that Defendants violated three different provisions of BIPA: the first requires a private entity in possession of biometrics to release a publicly accessible written policy describing its practices for retaining and destroying those biometrics, see 740 ILCS 14/15

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Salkauskaite v. Sephora USA, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/salkauskaite-v-sephora-usa-inc-ilnd-2020.