#privacylawsuit

[techinewswp]

Shopify Compelled to Confront U.S. Lawsuit Over Data Privacy Violations

In a ruling that may facilitate American courts' ability to exercise jurisdiction over online platforms, a U.S. appeals court on Monday revi

[mobiletrendstoday]

U.S. Court Rules Shopify Must Face Data Privacy Lawsuit in California

Shopify is set to face a revived data privacy lawsuit in the United States after a federal appeals court ruled the Canadian e-commerce giant can be sued in California over alleged misuse of consumer data.

In a 10-1 decision, the 9th U.S. Circuit Court of Appeals determined that Shopify could be held accountable for collecting personal data from shoppers making purchases on California-based retail websites. The ruling could pave the way for broader legal action against online platforms operating across state and national borders.

The case stems from claims by Brandon Briskin, a California resident, who alleges Shopify placed tracking cookies on his iPhone without his consent while he was shopping for athletic apparel from a local retailer, I Am Becoming. Briskin accuses Shopify of using the data to build consumer profiles for resale to other merchants.

Shopify argued it should not be sued in California, claiming its business model wasn’t specifically targeted at the state and that the lawsuit should be filed in another jurisdiction, such as Delaware, New York, or Canada. Lower courts had initially agreed, but the full appeals court disagreed, saying Shopify intentionally directed its actions at California consumers.

Judge Kim McLane Wardlaw, writing for the majority, stated that Shopify had "deliberately reached out" to California residents through its data practices, which were neither "random" nor "isolated."

In response, Shopify criticized the ruling, suggesting it undermines the foundational structure of the internet by exposing online businesses to lawsuits in any location where their technology is used. The company has yet to announce its next legal move.

Briskin's legal team welcomed the decision, calling it a win for consumer rights. His attorney, Matt McCrary, said the ruling ensures that digital businesses cannot avoid accountability simply by operating across multiple jurisdictions.

The lawsuit also attracted support from a coalition of 30 states and Washington, D.C., which argued that local governments must have the authority to enforce their consumer protection laws against companies engaging with residents online.

Meanwhile, the U.S. Chamber of Commerce backed Shopify, warning that the court’s approach could expose global service providers to legal risks in virtually any jurisdiction.

The case, titled Briskin v. Shopify, Inc., could have significant implications for how courts handle privacy disputes in the digital economy. The 9th Circuit’s decision now sends the case back to the lower courts for further proceedings.