Vasil v. Kiip, Inc.

CourtDistrict Court, N.D. Illinois
DecidedMarch 5, 2018
Docket1:16-cv-09937
StatusUnknown

This text of Vasil v. Kiip, Inc. (Vasil v. Kiip, 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
Vasil v. Kiip, Inc., (N.D. Ill. 2018).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION JESSICA VASIL and CHRISTINE ) FARAG, individually and on behalf of a ) class of similarly situated individuals, ) ) Plaintiffs, ) No. 16-CV-09937 ) v. ) Judge John J. Tharp, Jr. ) KIIP, INC., ) ) Defendant. MEMORANDUM OPINION AND ORDER In this putative class action, the plaintiffs allege that defendant Kiip, Inc. violated federal and state law by exploiting a popular fitness app, Runkeeper, to collect data from users even when they were not using the app or their phones. Kiip says the allegations do not plausibly establish a violation of federal or state law and moves to dismiss the complaint under Rule 12(b)(6). The Court agrees that the allegations in the current complaint fail to state a claim under federal law but concludes that it states a plausible claim under state law. The motion is therefore granted in part and denied in part. The plaintiffs will be permitted to replead. I. BACKGROUND1 Runkeeper is a popular fitness application used to track how far and how fast users ran during a workout. Users grant Runkeeper permission to utilize their smartphones’ geo-location capabilities, and in turn Runkeeper keeps track of the routes they run, their speed, their distance, and other information pertaining to their workouts. Runkeeper provides users with individually- 1 As this is a motion to dismiss, the Court accepts all well-pleaded facts as true and construes all inferences in favor of the plaintiff. Zemeckis v. Global Credit & Collection Corp., 679 F.3d 632, 634 (7th Cir. 2012). tailored challenges and suggested workouts based on their recorded data. Users also input certain health and fitness information in the app. Defendant Kiip, Inc. partnered with Fitnesskeeper, the creator of Runkeeper, to deliver advertisements in Runkeeper. Kiip’s ads contained promotions for assorted products, and appeared when Runkeeper users completed challenges or beat their best run time. In essence, the

advertisements were intended to make the user feel as though they were being rewarded. To implement this program, Kiip placed a “third-party tracker” in Runkeeper, allowing it to passively receive and actively extract data through the app. Compl. ¶ 21. Kiip collected information concerning Runkeeper users’ preferences, behavior, and demographics, and then used that information to deliver specific ads to each user. Kiip’s advertisements promoted large corporate brands, and it typically received a payment from those brands whenever a Runkeeper user purchased the advertised products. Because the purpose of Kiip’s third-party tracker was to display advertisements when Runkeeper users reached certain milestones, Kiip, like Runkeeper, had the ability to monitor in

real-time certain events in the lives of Runkeeper users. Kiip, however, continued to collect information about Runkeeper users when they were not using the Runkeeper app, and even continued to mine data when Runkeeper users were not using their phones at all. The information Kiip gathered while Runkeeper users were not using their phones included their current geographic location, cell phone device identifiers, and “other personal information” that the complaint does not specifically identify. Id. ¶ 34. Kiip did not obtain consent from any Runkeeper user to collect information while the Runkeeper app or the smartphone were not in use. In 2016, the Norwegian Consumer Council (a government agency) published a study that revealed that Kiip was collecting data from Runkeeper users even while they were not using their phones. Shortly thereafter, Fitnesskeeper ended its relationship with Kiip and issued a public apology. Two Runkeeper users, plaintiffs Jessica Vasil and Christine Farag, whose data Kiip collected via the Runkeeper app while they were not using the app, subsequently filed suit

against Kiip alleging violations of the Wiretap Act, 18 U.S.C. § 2510, et seq., and the Illinois Eavesdropping Statute, 720 ILCS 5/14-1, et seq., as well as a claim for unjust enrichment. Plaintiffs seek to represent a nationwide class of individuals whose information was unlawfully mined by Kiip (as well as an Illinois-specific subclass). Kiip now moves to dismiss plaintiffs’ complaint. II. DISCUSSION A. Wiretap Act Kiip moves to dismiss plaintiffs’ Wiretap Act claims, arguing that it did not receive the “content” of any communications while plaintiffs’ phones were not in use, and that even if it did, it was a party to those communications and therefore is not liable under the Act. The Wiretap Act

creates a cause of action against any entity who “intentionally intercepts, endeavors to intercept, or procures any other person to intercept or endeavor to intercept, any wire, oral or electronic communication.” 18 U.S.C. § 2511(1)(a). For practical purposes, the court will divide the allegedly intercepted communications into two categories: (1) current geo-locational data and device identifiers captured while plaintiffs were not using the Runkeeper app; and (2) geo- location and other personal data (including health and fitness information) plaintiffs provided to Runkeeper as part of their use of the app, which was later captured by Kiip during periods when the plaintiffs were not using the app. Plaintiffs have not stated a Wiretap Act claim for either category of data. 1. Current Geo-Locational Data and Device Identifiers Plaintiffs contend that Kiip violated the Wiretap Act by collecting, without consent, their current GPS coordinates and cell phone device identifiers while they were not using the Runkeeper Act. Kiip responds by arguing that geo-locational data and device identifiers do not qualify as “contents” of a communication, and that even if they could, the specific locational and

device identification data at issue here are not “content” because the plaintiffs never intended to communicate that information to anyone. Kiip has the better of the argument. Under the Wiretap Act, an interception is defined as “the aural or other acquisition of the contents of any wire, electronic, or oral communication through the use of any electronic, mechanical, or other device.” 18 U.S.C. § 2510(4) (emphasis added). “Contents,” in turn, “include any information concerning the substance, purport, or meaning of that communication.” Although the Seventh Circuit has not yet addressed whether locational information constitutes the “content” of a communication under the Wiretap Act, other circuits have. The touchstone of each decision has been that the “content” of a communication is the substance that

the speaker intended to communicate, and does not include automatically generated “record” data—for example, information about a telephone call’s origination, length, and time. The Ninth Circuit, analyzing the text and history of the Wiretap Act and subsequent amendments, concluded that “Congress intended the words ‘contents’ to mean a person’s intended message to another (i.e., the ‘essential part’ of the communication, the ‘meaning conveyed,’ and the ‘thing one intends to convey’).” In re Zynga Privacy Litig., 750 F.3d 1098, 1105-06 (9th Cir. 2014). The Zynga court considered whether the transmission of a Facebook user’s Facebook identification number and the web address that the user was on when she clicked a particular link constituted contents.

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