Wilk v. Brainshark, Inc.

CourtDistrict Court, N.D. Illinois
DecidedSeptember 27, 2022
Docket1:21-cv-04794
StatusUnknown

This text of Wilk v. Brainshark, Inc. (Wilk v. Brainshark, 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
Wilk v. Brainshark, Inc., (N.D. Ill. 2022).

Opinion

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

LORI WILK, individually and on behalf of all others similarly situated,

Plaintiff, Case No. 1-21-cv-4794

v.

BRAINSHARK, INC. Judge John Robert Blakey

Defendant.

MEMORANDUM OPINION AND ORDER In this putative class action, Plaintiff Lori Wilk (“Plaintiff”) sues Brainshark, Inc. (“Brainshark”) for violating sections 15(a) and 15(b) of the Illinois Biometric Information Privacy Act (“BIPA”), 740 Ill. Comp. Stat. 14/1 et seq, by impermissibly collecting or obtaining her biometric data from a video that she uploaded to Brainshark at her employer’s request. [1]. Plaintiff sues on behalf of herself and a putative class of other Illinois residents whose biometric data Brainshark collected. Id. Brainshark has moved to dismiss Plaintiff’s Complaint under Federal Rule of Civil Procedure 12(b)(6). [21]. For the reasons explained below, the Court denies Brainshark’s Motion, [21]. I. Legal Standard To survive a 12(b)(6) motion, a complaint must set out a short and plain statement of the claim that provide the defendant with “fair notice” of the claim “and the grounds upon which it rests,” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47 (1957)). The complaint must also contain “sufficient factual matter” to state a facially plausible claim to relief and “allow the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting and citing Twombly,

550 U.S. at 556, 570). In analyzing a motion to dismiss, a court must also construe the complaint in the light most favorable to the plaintiff, accept all well-pled allegations as true and draw all reasonable inferences in a plaintiff’s favor. See Iqbal, 556 U.S. at 678; Bilek v. Fed. Ins. Co., 8 F.4th 581, 584 (7th Cir. 2021). II. Factual Allegations The Court draw all facts from Plaintiff’s Complaint. [1]. Plaintiff resides in

Naperville, Illinois, and previously worked for RQI Partners, LLC (“RQI”). Id. ¶ 11. Brainshark, a Massachusetts company, provides AI-powered technology that takes sales professionals’ videos and applies facial-mapping technology to identify their emotions and other performance indicators. Id. ¶¶ 4–6. To do this, the technology scans individuals’ facial geometry and analyzes each second of the video for the seller’s emotions. Id. ¶¶ 6, 8. Brainshark performs this service for over 1,000 companies, including RQI. Id. ¶ 3.

While Plaintiff worked for RQI, RQI contracted with Brainshark to use its AI- technology to provide RQI with a better understanding of its employees’ sales acumen. Id. ¶ 7. Between November 2020 and mid-2021, at RQI’s request, Plaintiff recorded videos of her sales presentations and uploaded them to Brainshark. Id. ¶ 11. Brainshark then analyzed Plaintiff’s facial geometry in the videos using its technology and shared with RQI the analysis results. Id. ¶ 8. Brainshark did not inform Plaintiff that it planned to collect scans of her facial geometry or how it planned to retain and manage such data. Id. ¶¶ 13, 27. Brainshark also did not have a publicly available policy detailing its data collection

and management, nor did it provide Plaintiff with a copy of any such policy. Id. ¶ 44. Brainshark also did not obtain Plaintiff’s informed written consent to collect her biometric data from the videos she sent at RQI’s request. Id. ¶¶ 14, 46. Plaintiff alleges that Brainshark is a “private entity” under BIPA 740 ILCS 14/10. Id. ¶ 42. She contends that the scans of facial geometry (from the uploaded videos) qualify as “biometric identifiers” as defined by BIPA and Brainshark’s

collection and use of her biometric information violated sections 15(a) and 15(b) of BIPA. Id. ¶ 43. III. Analysis Brainshark asserts four arguments in favor of dismissal. First, Brainshark argues that Plaintiff’s claims fail pursuant to Illinois’ Extraterritorial Doctrine. [21] at 6. Second, Brainshark argues that the Complaint does not plausibly allege that Brainshark violated sections 15(a) or (b) of BIPA. Id. at 7–8. Third, Brainshark

argues that the Complaint fails because it does not allege the requisite state of mind for monetary damages. Id. at 9. Fourth, and finally, Brainshark argues that BIPA violates the First Amendment because it constitutes an unconstitutional restraint on commercial speech. Id. at 10–13. A. The Extraterritorial Doctrine Does Not Apply Brainshark begins by arguing that the Complaint fails under Illinois’ Extraterritorial Doctrine because BIPA does not apply to purely out-of-state conduct

and the Complaint fails to allege that Brainshark allegedly took any action in Illinois. [21] at 6. As Brainshark correctly points out, id. at 7, under Illinois’ Extraterritorial Doctrine, an Illinois statute only applies to extraterritorial conduct if the statute evinces clear intent for it to have an extraterritorial effect. See Avery v. State Farm Mut Ins. Co., 835 N.E.2d 801, 852 (Ill. 2005). As Brainshark also correctly notes, [21]

at 7, BIPA does not include language to suggest that the Illinois legislature intended for it to have an extraterritorial effect. See Monroy v. Shutterfly, Inc., No. 16 C 10984, 2017 WL 4099846, at *5 (N.D. Ill. Sept. 15, 2017) (finding BIPA lacked extraterritorial effect); Rivera v. Google Inc., 238 F. Supp. 3d 1088, 1100 (N.D. Ill. 2017) (same). Thus, BIPA only governs Brainshark’s alleged conduct if it occurred in Illinois. See Avery, 835 N.E.2d at 852. Next, conduct only occurs in Illinois if it occurs “primarily and substantially”

in Illinois. Avery, 835 N.E.2d at 853. The Illinois Supreme Court in Avery—which considered a claim brought pursuant to the Illinois Consumer Fraud Act—explained that to determine this, a court must consider the “totality of circumstances” including such factors as: a plaintiff’s residency, the location of the harm, where the parties sent and received communications, and where the defendant carried out any policy at issue. Id. Here, Brainshark argues that the Complaint only alleges that Plaintiff resides in Illinois and uploaded the videos in Illinois. According to Brainshark, this cannot suffice to plausibly suggest that Brainshark’s conduct occurred primarily or

substantially within Illinois. [21] at 7–8. Instead, Brainshark posits that the conduct only occurs “primarily and substantially” in Illinois if the alleged facial scanning occurred within Illinois. Id. Because it did not (or at least the Complaint does not allege that it did), Brainshark argues that BIPA does not apply. Brainshark’s argument, however, draws too narrow a box around the conduct at issue. As Avery made clear, courts do not apply a bright-line rule for determining

whether the alleged conduct occurred in Illinois but rather they consider the “totality of circumstances.” 835 N.E.2d at 854.

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Wilk v. Brainshark, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilk-v-brainshark-inc-ilnd-2022.