Smith v. Google, LLC

District Court, N.D. California·Decided June 3, 2024·No. 5:23-cv-03527·Unknown

Opinion

MARY L. SMITH, et al., Case No. 23-cv-03527-PCP

Plaintiffs, ORDER DENYING MOTION TO v. DISMISS

Defendant.

In this consolidated putative class action against Google, LLC, plaintiffs bring several state and federal law claims arising from Google’s alleged collection of their financial data through tracking tools installed on several tax preparation websites. Google has moved to dismiss these claims and seeks judicial notice of certain documents. For the reasons that follow, Google’s requests for judicial notice are granted and its motion to dismiss is denied. I. Background The following facts from the complaint are accepted as true for purposes of this motion. Google operates a well-known search engine and many other internet services and products. Google makes most of its money selling ads. Its advertising tools allow advertisers to target a specific location, language, and audience. Google also offers tools that track how users interact with websites. These tools can track groups of users who behave similarly or share characteristics like age or gender. They can also track specific user actions on websites, like the number of clicks, scrolls, searches, or downloads. These tools can link all of the data associated with a single user. This data can measure how effective ads are and monitor how users behave. One such tool is Google Analytics. Website owners can install an “invisible” snippet of Analytics installed, the tracking code collects pseudonymous information about how the user interacts with the webpage. By default, Google Analytics collects information about the user’s browser, language, clicks, downloads, and form interactions, as well as the titles of webpages, and matches the information it collects with a user’s location, gender, and general interests. Google also offers a more powerful tracking tool called the Google Tag. This allows sophisticated web publishers to customize what data is collected and how it is processed. Data collected by these tools is sent in real time to Google, which stores the data and processes it into reports. According to the complaint, Google benefits from this collection because it can use the data to power its algorithms and learn about user habits. The complaint alleges that Google uses this data to assemble a “detailed dossier” for Google users and other website visitors. H&R Block, TaxAct, and TaxSlayer are online tax filing services. The complaint alleges that H&R Block “transmitted information about tax filers’ fillings to Google” (although it does not allege which specific tracking tools or products H&R Block used). The complaint alleges that both TaxAct and TaxSlayer disclosed “adjusted gross income and refund amounts” to Google. Google purportedly prohibits Google Analytics customers from “passing any information that could be used by Google to identify individuals.” According to the complaint, Google has never contacted any of the tax preparation sites about their sharing potentially sensitive information with Google, nor has Google suspended or terminated any of these sites’ accounts. The named plaintiffs are residents of California, Florida, Georgia, Illinois, New York, South Carolina, and Texas who used TaxAct, H&R Block, and TaxSlayer to prepare their taxes. Each alleges that the site they used to file taxes had installed Google’s tracking tools. Plaintiffs seek to represent a nationwide class of people who used online tax providers like H&R Block, TaxAct, or TaxSlayer that used Google tracking tools, as well as California, Illinois, Florida, and Texas subclasses. Plaintiffs filed the present consolidated complaint after the Court consolidated two similar cases. Plaintiffs assert eight claims under a variety of state and federal laws on behalf of the putative nationwide class and state subclasses. Google has moved to dismiss the complaint under II. Legal Standards A complaint that does not state a plausible claim upon which relief can be granted can be dismissed under Federal Rule of Civil Procedure 12(b)(6). “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.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). Legal conclusions “must be supported by factual allegations.” Id. at 679. The Court must “accept all factual allegations in the complaint as true and construe the pleadings in the light most favorable to the nonmoving party.” Rowe v. Educ. Credit Mgmt. Corp., 559 F.3d 1028, 1029–30 (9th Cir. 2009). There are two exceptions to the general rule that “courts may not consider material outside the pleadings when assessing the sufficiency of a complaint.” Khoja v. Orexigen Therapeutics, Inc., 899 F.3d 988, 998 (9th Cir. 2018). First, Federal Rule of Evidence 201 permits judicial notice of “a fact that is not subject to reasonable dispute” because the fact is “generally known” or “can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned.” A court may take notice of “undisputed matters of public record,” but not of “disputed facts stated in public records.” Lee v. City of L.A., 250 F.3d 668, 690 (9th Cir. 2001). Second, the doctrine of incorporation by reference permits a court to treat an extrinsic document as if it were part of the complaint if the pleading “refers extensively to the document” or if “the document forms the basis” of a claim. Khoja, 899 F.3d at 1002. This can be proper “when assessing the sufficiency of a claim requires that the document at issue be reviewed,” but is not warranted when “the document merely creates a defense to the well-ple[aded] allegations.” Id. III. Requests for Judicial Notice Google has requested judicial notice of several documents. These requests are granted. First, Google seeks judicial notice of the “Google Analytics Terms of Service” posted on its website. Google argues that this document is noticeable because it is posted on a public website and, alternatively, because it is incorporated by reference into the complaint. Although the complaint refers to “policies” that Google purportedly has in place, Compl. ¶ 42, this is not enough for the document to be incorporated by reference. The complaint’s indirect reference to claims arise from or depend on that agreement. Still, the Court takes notice of this document because it is publicly available from a source whose accuracy cannot reasonably be questioned and its contents can be accurately determined. But this notice is limited to the existence and contents of this May 15, 2023 version of the document. The Court cannot conclude that any of the tax preparation sites ever assented to the terms therein, or that plaintiffs had notice of the contents. Second, Google seeks judicial notice of two other pages on its website that discuss Google Analytics. This request is similarly granted, but notice is again limited to the existence of these documents. The Court cannot conclude that these documents—a blog post addressing “Google Analytics privacy” and a support article identifying “[b]est practices to avoid sending Personally Identifiable Information”—accurately characterize how Google’s tools operate. Third, Google requests judicial notice of copies of the “TaxAct Privacy Policy,” the “H&R Block Privacy Policy,” and the “TaxSlayer Privacy Policy” posted on the tax preparation services’ respective websites. These documents

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Smith v. Google, LLC, (N.D. Cal. 2024).

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