Satchell v. Sonic Notify, Inc.

234 F. Supp. 3d 996, 2017 U.S. Dist. LEXIS 31456, 2017 WL 760786
CourtDistrict Court, N.D. California
DecidedFebruary 13, 2017
DocketCase No. 16-cv-04961-JSW
StatusPublished
Cited by3 cases

This text of 234 F. Supp. 3d 996 (Satchell v. Sonic Notify, 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
Satchell v. Sonic Notify, Inc., 234 F. Supp. 3d 996, 2017 U.S. Dist. LEXIS 31456, 2017 WL 760786 (N.D. Cal. 2017).

Opinion

ORDER GRANTING, IN PART, AND DENYING, IN PART, MOTIONS TO DISMISS AND CONTINUING CASE MANAGEMENT CONFERENCE

JEFFREY S. WHITE, United States District Judge

Now before the Court for consideration are the motions to dismiss filed by Yinzcam, Inc. (“Yinzcam”), Golden State Warriors, LLC (“the Warriors”), and Sig-nal360, Inc. (f/k/a Sonic Notify, Inc.) (“Sig-nal360”). The Court has considered the parties’ papers, relevant legal authority, and the record in this ease, and for the reasons set forth in the remainder of this Order, the Court HEREBY GRANTS, IN PART, AND DENIES, IN PART, the motions.

BACKGROUND

Plaintiff, LaTisha Satchell (“Plaintiff’), brings this putative class action in which she asserts two claims for relief based on alleged violations of the Electronic Communications Privacy Act, 18 U.S.C. sections 2510, et seq. (the ‘Wiretap Act”). According to Plaintiff, the Warriors organization offers its fans a mobile application [1000]*1000(“the App”), developed by Yinzcam, which “provides an interactive experience for fans by delivering scores, news, and other information relevant to the organization.” (Compl. ¶2; see also id, ¶¶ 24-25.) Plaintiff alleges that the Warriors partnered with Signal360 “to integrate Signal360’s beacon technology,” into the App, (Id. ¶ 3.)

“Beacons are a novel method to track consumers and how they interact with marketing and advertisements” and permit companies to provide consumers with more targeted and specific advertisements, promotions, or content. (Id.; see also id. ¶¶ 17-23 (describing beacon technology in general).) Plaintiff alleges that Signal360 developed a “novel beacon technology called audio beacons, which identifies a consumer’s physical location “through sounds rather than through radio signals.” (Id. ¶ 22.) The audio beacon uses a speaker to emit a unique audio signal, “(b]ut for the technology to work, Signal360 requires a microphone to continuously listen for its audio signals.” (Id. ¶ 23.)

According to Plaintiff, the microphone in question is the microphone in a smart-phone. (Id. ¶¶4-5, 30-32.) “Defendants programmed the App to instantly turn on [a consumer’s] Microphone. Once downloaded and opened, the App turns on a consumer’s Microphone, listening and picking up any and all audio within range of the Microphone. The App continues listening until it is closed—either when the consumer’s smartphone is shut off or when the consumer ‘hard closes’ the App[.]”1 (Id. ¶ 30.) Plaintiff further alleges that “the App temporarily records portions of the audio for analysis,” and she alleges that, by design, the App captures a consumer’s private conversations. (Id. ¶¶4-5, 30-35.) Plaintiff also alleges that although “the App asks for certain permissions,” including a request to use a device’s microphone, the Defendants do not advise consumers that the “App uses audio beacon technology that surreptitiously turns on consumers’ smartphone microphones and listens in.” (Id. ¶ 28.)

Plaintiff downloaded the App in April 2016 and used it until about July 11, 2016. Plaintiff also alleges she carried her smart-phone with her “to places where she would not invite other people, and to places where she would have private conversations.” (Id. ¶ 35.) Plaintiff contends that because the “App was continuously running on her phone, Defendants [sic] App listened-in to private oral communications.” (Id.) Plaintiff also alleges Defendants acted without her consent or knowledge. (Id. ¶¶ 35-36.)

Based on these, and other allegations that the Court shall address as necessary, Plaintiff asserts two claims for relief based on alleged violations of the Wiretap Act, In each claim, she argues that the Defendants violated 18 U.S.C. sections 2511(l)(a) and 2511(l)(d), The first claim for relief is asserted against Signal360 and the second claim for relief is asserted against each of the Defendants.

ANALYSIS

A. Applicable Legal Standard.

1. Federal Rule of Civil Procedure 12(b)(1).

The Court evaluates a motion to dismiss for lack of Article III standing under Rule 12(b)(1). See Maya v. Centex Corp., 658 F.3d 1060, 1067 (9th Cir. 2011); White v. Lee, 227 F.3d 1214, 1242 (9th Cir. 2000). A motion to dismiss under Rule 12(b)(1) may be “facial or factual.” Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004). Where, as here, a defendant makes a facial attack, the factu[1001]*1001al allegations of the complaint are taken as true. Federation of African Am. Contractors v. City of Oakland, 96 F.3d 1204, 1207 (9th Cir. 1996); see also Lujan v. Defenders of Wildlife, 504 U.S. 555, 561, 112 S.Ct. 2130, 119 L.Ed.2d 361 (1992) (“At the pleading stage, general factual allegations of injury resulting from the defendant’s conduct may suffice, for on a motion dismiss, [courts] presume that general allegations embrace those specific facts that are necessary to support the claim.”) (internal citation and quotations omitted). The plaintiff is then entitled to have those facts construed in the light most favorable to him or her.. Federation of African Am. Contractors, 96 F.3d at 1207.

2. Federal Rule of Civil Procedure 12(b)(6).

Under Rule 12(b)(6), the Court’s “inquiry is limited to the allegations in the complaint, which are accepted as true and construed in the light most favorable to the plaintiff.” Lazy Y Ranch LTD v. Behrens, 546 F.3d 580, 588 (9th Cir. 2008). Even under the liberal pleadings standard of Federal Rule of Civil Procedure 8(a)(2), “a plaintiff’s obligation to provide the ‘grounds’ of his ‘entitle[ment] to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a claim for relief will not do.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (citing Papasan v. Allain, 478 U.S. 265, 286, 106 S.Ct. 2932, 92 L.Ed.2d 209 (1986)). Pursuant to Twombly, a plaintiff must not allege conduct that is conceivable but must allege “enough facts to state a claim to relief that is plausible on its face." Id. at 570, 127 S.Ct. 1955. “A claim has facial plausibility when the Plaintiff pleads factual content that allows the court to draw the reasonable inference that the Defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct.

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Bluebook (online)
234 F. Supp. 3d 996, 2017 U.S. Dist. LEXIS 31456, 2017 WL 760786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/satchell-v-sonic-notify-inc-cand-2017.