Williams v. DDR Media, LLC

CourtDistrict Court, N.D. California
DecidedFebruary 28, 2023
Docket3:22-cv-03789
StatusUnknown

This text of Williams v. DDR Media, LLC (Williams v. DDR Media, LLC) 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
Williams v. DDR Media, LLC, (N.D. Cal. 2023).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 LORETTA WILLIAMS, Case No. 22-cv-03789-SI

8 Plaintiff, ORDER DENYING DEFENDANTS’ 9 v. JOINT MOTION TO COMPEL ARBITRATION 10 DDR MEDIA, LLC, et al., Re: Dkt. No. 29 11 Defendants.

12 13 On February 17, 2023, the Court held a hearing on defendants’ joint motion to compel 14 arbitration. For the reasons set forth below, the Court DENIES the motion. 15 16 BACKGROUND 17 On June 27, 2022, Loretta Williams filed a class action complaint against defendants DDR 18 Media LLC and Lead Intelligence Inc., d/b/a/ Jornaya, alleging that defendants violated the 19 California Invasion of Privacy Act, Cal. Penal Code § 631,1 and California’s Unfair Competition 20 Law, and invaded Williams’s and class members’ privacy rights under the California Constitution. 21 Williams alleges that defendants unlawfully recorded her electronic communications or interactions 22 with DDR Media’s website “SnappyRent2own.com” when she used the website on or around 23 December 10, 2021. Compl. ¶¶ 20–24 (Dkt. No. 1). 24 According to the complaint, Jornaya offers a product called “TCPA Guardian” to lead 25 generators and telemarketers. Id. ¶ 5. The product is “designed to allow these lead generators and 26 1 The California Invasion of Privacy Act criminalizes the use of a recording device to 27 “read[], or attempt[] to read, or to learn the contents or meaning of any message, report, or 1 telemarketers to attempt compliance with the federal Telephone Consumer Protection Act by 2 documenting alleged evidence of prior express consent to receive telemarketing calls provided on 3 websites.” Id. One feature of TCPA Guardian is a “visual playback” function, which records, in 4 real time, a person’s interactions with a website that is using TCPA Guardian. Id. ¶ 6. DDR Media 5 installed TCPA Guardian by embedding Jornaya’s code onto the SnappyRent2own.com website. 6 Id. ¶ 11. 7 Williams alleges that when she visited SnappyRent2own.com on December 10, 2021, “the 8 Jornaya TCPA Guardian replay function created a video that captured Williams’ keystrokes and 9 clicks on the website.” Id. ¶ 21. TCPA Guardian also captured the date and time of the visit, her IP 10 address, and her geographic location, as well as Williams’ name, address, and phone number. Id. 11 ¶¶ 21–23. Williams alleges that the recording was done without her consent, and that defendants 12 did not inform website visitors that their strokes and clicks would be recorded. Id. ¶ 24. 13 On December 15, 2022, defendants filed a joint motion to compel arbitration based upon an 14 arbitration agreement contained in the Terms of Use on the SnappyRent2Own.com website. 15 Defendants have submitted pictures of the website, which they implicitly represent is the version of 16 the website that Williams accessed.2 See Swaminathan Decl., Ex. 1 (Dkt. No. 29-2). The hyperlink 17 to the Terms of Use is on lines sixteen and seventeen of twenty-one in a full-justified paragraph of 18 text. 3 See id.; see also Appendix A. The paragraph states, 19 By clicking the “Get Started” button, I am agreeing by my electronic signature to give SnappyRent2Own, NHAProgram, and 20 its partners my prior express written consent and permission to send emails, as well as to call and send to me recurring text 21 messages at the cellphone number(s) I provided above and to any other subscriber or user of these cellphone number(s), using an 22 automated dialing system at any time from and after my inquiry to 23 2 The Court accessed the SnappyRent2Own.com website on February 22, 2023. On that 24 day, the website differed from the version depicted in defendants’ briefing in significant ways, including the absence of a long paragraph— or any language—stating that by taking any particular 25 action on the website, such as clicking a button, the user was agreeing to the Terms of Use.

26 3 The paragraph also contains a hyperlink to a Privacy Policy. While the Privacy Policy is not directly at issue in this motion, defendants emphasize that the Privacy Policy discloses that the 27 website is collecting users’ personally identifying information. Williams asserts that the hyperlink SnappyRent2Own, NHAProgram for purposes of all federal and 1 state telemarketing and Do-Not-Call laws, in each case to market to me products and services and for all other purposes. I 2 understand that my telephone company may impose charges on me for these contacts. I understand that my consent is not required to 3 buy any of these business’s products or services and it can be revoked at any time. For SMS message campaigns: text STOP to 4 stop and HELP for help. Terms & Conditions/privacy policy apply. In addition, I agree to the Terms of Use and the Privacy 5 Policy. I also authorize the auto dealers and financial institutions that receive my request to order my credit report to determine my 6 creditworthiness. I understand that SnappyRent2own.com, NHAProgram does not make credit decisions and is not a lender 7 or broker. 8 Id. The text of the entire paragraph is darker gray on a lighter gray background. Id. The Terms of 9 Use hyperlink is underlined, but otherwise is in the same style and color as the surrounding 10 words. Id. Above the paragraph containing the Terms of Use hyperlink are four white data fields, 11 which contain font approximately two times the size4 of the Terms of Use hyperlink font, where 12 users are prompted to fill in their contact information (first name, last name, phone number, and 13 email address). Id. Below the Terms of Use hyperlink paragraph is a large “CHECK LISTINGS” 14 button. Id. The button is blue and the text within it is white, in all caps, and the font is approximately 15 two to three5 times the size of the Terms hyperlink font. Id. Below the “CHECK LISTINGS” button 16 are photos of listings and their locations. Id. Below the photos is a “Get Started Today” button, 17 which is the same size as the “CHECK LISTINGS” button. Id. The “Get Started Today” button is 18 blue, the text within the button is white, and the font is approximately two to three times the size of 19 the Terms hyperlink font. Id. The Terms of Use hyperlink leads to a page titled “Terms and 20 Conditions.” Dkt. No. 29-3. The Terms and Conditions document is seven pages and is mostly 21 single-spaced. Id. The arbitration agreement appears on page five of seven. Id. at 5. 22 23 LEGAL STANDARD 24 A party seeking to compel arbitration bears the burden of proving the existence of an 25 agreement to arbitrate by a preponderance of the evidence. Johnson v. Walmart Inc., 57 F.4th 677, 26 4 The Terms of Use hyperlink font is 1/16th of an inch while the font in the data fields is 27 1/8th of an inch. 1 681 (9th Cir. 2023). The Federal Arbitration Act (“FAA”) “requires federal district courts to stay 2 judicial proceedings and of claims covered by a written and enforceable arbitration agreement.” 9 3 U.S.C. § 3; Nguyen v. Barnes & Nobel Inc., 763 F.3d 1171, 1175 (9th Cir. 2014). “The FAA limits 4 the district court’s role to determining whether a valid arbitration agreement exists, and whether the 5 agreement encompasses the disputes at issue.” Nguyen, 763 F.3d at 1175. “In determining whether 6 a valid arbitration agreement exists, federal courts ‘apply ordinary state-law principles that govern 7 the formation of contracts.’” Id.6 8 9 DISCUSSION 10 Before analyzing whether Williams agreed to arbitrate her claims, it is helpful to understand 11 the type of contract contained on the SnappyRent2Own.com website.

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Williams v. DDR Media, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-ddr-media-llc-cand-2023.