The State of Texas v. YELP, Inc.

Court of Appeals of Texas·Decided October 16, 2025·No. 15-24-00040-CV·Published

Opinion

Reversed and Remanded and Opinion filed October 16, 2025.

In The

Fifteenth Court of Appeals

NO. 15-24-00040-CV

THE STATE OF TEXAS, Appellant

V. YELP, INC., Appellee

On Appeal from the 335th District Court Bastrop County, Texas Trial Court Cause No. 2519-335

OPINION Yelp, Inc. filed a special appearance in response to the State’s petition seeking civil penalties, damages, and injunctive relief for alleged violations of the Deceptive Trade Practices Act. The trial court granted Yelp’s special appearance and dismissed the State’s case. On appeal, the State argues that this dismissal was erroneous because the State established both general and specific jurisdiction over Yelp in Texas. We hold that the State did not plead facts establishing general jurisdiction over Yelp, but the State has established specific jurisdiction. Consequently, we reverse the trial court’s order of dismissal and remand the case for adjudication on the merits.

BACKGROUND

Yelp is an internet-based Delaware corporation with its principal place of business in San Francisco, California. Yelp essentially operates as an online “yellow pages,”1 providing consumers in search of a service or product with lists of businesses that match the user’s specifications, as well as custom location-targeted ads, paid for by businesses. The consumer is then able to either book a reservation or purchase a product in some cases. Consumers can post reviews about their experience with those businesses, subject to moderation by Yelp. Other consumers using Yelp are then able to read the reviews. If a consumer books an appointment or reservation, or purchases a product, Yelp generally derives revenue from these services. In 2009, Yelp registered to conduct business in Texas as a foreign, for- profit corporation. Yelp listed its express purpose for transacting business in Texas as “Internet Advertising.”

Following the leak of the United States Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization, 597 U.S. 215 (2022), Yelp CEO Jeremy Stoppelman urged business leaders to use their “platform and influence” to help protect reproductive rights. Three months later, in August 2022, Yelp posted a consumer notice on the Yelp business pages of Crisis Pregnancy Centers across the nation. The notice stated, “This is a Crisis Pregnancy Center. Crisis Pregnancy

1 Back when phones were still tethered to walls and not yet unleashed to dominate society, Americans typically owned hard-copy “telephone books.” In those telephone books, the “yellow pages” were the section—readily identifiable by the yellow hue of the paper—listing “business and professional firms alphabetically by category and that include[ed] classified advertising.” Yellow Pages, MERRIAM-WEBSTER.COM, https://www.merriam- webster.com/dictionary/yellow%20pages (last visited 4 Oct. 2025).

2 Centers typically provide limited medical services and may not have licensed medical professionals onsite.”

By letter dated February 7, 2023, twenty-four state attorneys general, including Texas Attorney General Paxton, demanded that Yelp remove the notice and “stop discriminating” against Crisis Pregnancy Centers. The next day, Yelp responded by providing sources in support of its notice, but Yelp also revised the notice to address the concerns raised in the letter. The revised notice stated, “This is a Crisis Pregnancy Center. Crisis Pregnancy Centers do not offer abortions or referrals to abortion providers.”

On September 28, 2023, the State sued Yelp in Bastrop County, asserting that Yelp violated the Deceptive Trade Practices Act by misleading Texas consumers about the availability of medical services at Crisis Pregnancy Centers. In response, Yelp filed a special appearance, arguing that the trial court lacked personal jurisdiction because (1) Yelp, as a nonresident, lacks sufficient minimum contacts with Texas to demonstrate purposeful availment of the Texas forum; (2) the State’s Deceptive Trade Practices claim does not arise from Yelp’s contacts with Texas; and (3) the exercise of jurisdiction over Yelp would offend traditional notions of fair play and substantial justice.

The State filed a response to the special appearance asserting that Yelp had extensive contacts with Texas, which gave rise to both general and specific jurisdiction. The State also asserted that Yelp had consented to general jurisdiction by registering to do business in Texas. The trial court granted Yelp’s special appearance and dismissed the case with prejudice. This appeal followed.

ANALYSIS

In two issues, the State contends that the trial court erred in granting Yelp’s special appearance because (1) Yelp consented to general jurisdiction in Texas as a 3 condition of registering to do business in the state; and (2) Yelp is subject to specific jurisdiction in Texas because it purposefully availed itself of the Texas forum, and the State’s claims are related to those purposeful contacts with Texas.

I. Standard of Review

A nonresident defendant is subject to the personal jurisdiction of Texas courts if (1) the Texas long-arm statute authorizes the court to exercise jurisdiction, and (2) exercising jurisdiction does not violate state and federal constitutional due process guarantees. LG Chem Am., Inc. v. Morgan, 670 S.W.3d 341, 346 (Tex. 2023) (citing Tex. Civ. Prac. & Rem. Code §§ 17.041–.045); Kelly v. Gen. Interior Const., Inc., 301 S.W.3d 653, 657 (Tex. 2010). The requirements of the long-arm statute “are satisfied if an assertion of jurisdiction accords with federal due-process limitations.” Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 575 (Tex. 2007). Personal jurisdiction “is consistent with due process ‘when the nonresident defendant has established minimum contacts with the forum state, and the exercise of jurisdiction comports with traditional notions of fair play and substantial justice.’” Kelly, 301 S.W.3d at 657 (quoting Moki Mac, 221 S.W.3d at 575).

The nonresident defendant’s forum-state contacts can give rise to two types of personal jurisdiction—general jurisdiction and specific jurisdiction. Moki Mac, 221 S.W.3d at 575. General jurisdiction arises when a defendant’s contacts with the forum state are so “continuous and systematic” that the defendant is “essentially at home.” State v. Volkswagen Aktiengesellschaft, 669 S.W.3d 399, 412 (Tex. 2023) (quoting Luciano v. SprayFoamPolymers.com, LLC, 625 S.W.3d 1, 8 (Tex. 2021)). General jurisdiction permits courts to “render a binding judgment against a defendant even if the plaintiff’s claims neither arise from activities conducted in the forum state nor ‘relate to the forum [s]tate or the defendant’s activity there.’” Id. (alteration in original) (quoting Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 592

4 U.S. 351, 358 (2021)). If general jurisdiction is established, the cause of action “may concern events and conduct anywhere in the world,” subject to certain limits. Id.

Courts can exercise specific jurisdiction over a nonresident defendant, when (1) the defendant engages in some act by which it purposefully avails itself of the privilege of conducting activities within the state and (2) the plaintiff’s claims arise out of or relate to those forum contacts. LG Chem Am., 670 S.W.3d at 347. Purposeful availment and relatedness are “two co-equal components.” Id. (quoting Moki Mac, 221 S.W.3d at 579). There must be an appropriate “nexus between the nonresident defendant, the litigation, and the forum.” Moki Mac, 221 S.W.3d at 579.

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