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1 2 3 COOLEYLLP MICHAEL G. RHODES (116127) (rhodesmg@cooley.com) MATTHEW D. BROWN (196972) (brownmd@cooley.com) MEGAN 1. DONOHUE (266147) (mdonohue@cooley.com) 101 California Street 5th Floor San Francisco, CA 94111-5800 Telephone: (415) 693-2000 Facsimile: (415) 693-2222 Attorneys for Defendant FACEBOOK, INC.
SUVJ!!KIOR
, FIL£D
OEC 1 6 2010
45 6
Alvarez
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8 9 10 11 12 13 14 15 16 DAVID A. COHEN, a minor, by and through ROBIN S. COHEN as Guardian ad Litem; SHELBY A. ORLAND, a minor, by and through MARCIA 1. ORLAND as Guardian ad Litem; for all others similarly situated, Plaintiffs, No. BC444482
MEMORANDUM OF POINTS AND AUTHORITIES IN SUPPORT OF DEFENDANT FACEBOOK, INC. 's DEMURRER TO PLAINTIFFS' COMPLAINT
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COOLEYLLP
AtTOMNlTS SAN AT LAW FR"NC'SCO
FACEBOOK,
INC.'S
MPA l/S/O
DEMURRER
TO PLAINTIFFS'
CLASS ACTION
COMPLAINT
- CASE
No. BC444482
TABLE OF CONTENTS Page INTRODUCTION AND SUMMARY OF THE ARGUMENT STATEMENT OF FACTS LEGAL STANDARDS ARGUMENT
A. B. 47 U.S.C. § 230
1 2 4 5
5
Plaintiffs' Claims are Barred by the Federal Communications Decency Act, Plaintiffs Fail to State a Claim under California Civil Code Section 3344
I.
8 9 12 12 12
Facebook's re-publication of the fact that a User likes certain products and services is newsworthy and exempt under section 3344(d) This construction of section 3344 is supported by the doctrine of constitutional avoidance " The Complaint fails to allege facts that would support the elements of section 3344 : a. b. c. The Complaint fails to allege any injury The Complaint fails to allege that Facebook uses names or likenesses for its advantage, commercial or otherwise ,
2.
3.
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The Complaint fails to allege that publication of "landing pages" is for "the purposes of advertising.".. 14
15 15 16 17 17 20
C.
Plaintiffs Fail to State a Claim for Violation of the California Constitutional Right to Privacy
1. 2.
Plaintiffs fail to allege a legally protected privacy interest. Plaintiffs fail to allege a reasonable expectation of privacy in the circumstances ~lain~iffs fail to.alleg~ conduct by Facebook that constitutes a serious InvaSIon of a pnvacy Interest
>
3.
D.
Plaintiffs Fail to State a Claim for Violation of California Business and Professions Code Section 17200
CONCLUSION
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FACE BOOK, INC. 's MPA 115/0 DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE NO. BC444482
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.,1,
Barrett v. Rosenthal,
40 Cal. 4th 33 (2006) 5
Branzburg v. Hayes,
408 U.S. 665 (1972) 11
Cel- Tech Commc 'ns., Inc. v. Los Angeles Cellular Tel. Co.,
20 Cal. 4th 163 (1999) 19,20
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No. BC444482
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T ABLE OF AUTHORITIES (continued) Page Drum v. San Fernando Valley Bar Ass 'n, 182 Cal. App. 4th 247 (201 0) Evans v. City oj Berkeley, 38 Cal. 4th 1 (2006) Fair Housing Council of San Fernando Valley v. Roommates.com, LLC, 521 F.3d 1157 (9th Cir. 2008) Finkel v. Facebook, Inc., No. 102578/09,2009 N.Y. Misc. LEXIS 3021 (N.Y. Sup. Ct. Sept. 15,2009) Fleet v. CBS, Inc., 50 Cal. App. 4th 1911 (1996) Gentry v. -ellay, Inc., 99 Cal. App. 4th 816 (2002) Goddard v, Google, 640 F. Supp. 2d 1193 (N.D. Cal. 2009) Hill v. Nat 'Z Collegiate Athletic Ass 'n, 7 Cal. 4th 1 (1994) In re Tobacco 11 Cases, 46 Cal. 4th 298 (2009) INS v. St. Cyr, 533 U.S. 289 (2001) JetBlue Airways Corp. Privacy Litigation, 379 F. Supp. 2d 299 (E.D.N.Y. 2005) Kathleen R. v. City oj Livermore, 87 Cal. App. 4th 684 (2001) Korea Supply Co. v. Lockheed Martin Corp., 29 Cal. 4th 1134 (2003) Longshore v. Cnty. of Ventura, 25 Cal. 3d 14 (1979) Lowe v. S.E. c., 472 U.S. 181 (1985) , , . , 19 12 18 5 20 4 10 , :..: 20 15 7 5, 6, 7 8 passim 8 15, 16, 17
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-iiFACEBOOK, INC.'S MPA 1/8/0 DEMURRER TO PLAINTIFFS' CLASS ACfION COMPLAINT - CASE
No. BC444482
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TABLE OF AUTHORITIES (continued) Page Montana v. San Jose Mercury News, Inc., 34 Cal. App. 4th 790 (1995) Moreno v. Hanford Sentinel, Inc.• 172 Cal. App. 4th 1125 (2009) Morningstar, Inc. v. Superior Court of Los Angeles Cnty., 23 Cal. App. 4th 676 (1994) Newcombe v. Adolf Coors Co., 157 F.3d686 (9th Cir. 1998) Paradise Hills Assoc. v. Pr.ocel, 235 Cal. App. 3d 1528 (1991) People v. Herrera, 124 Cal. App. 3d 386 (1981) Perfect IO Inc. v. CCBill LLC, 488 F.3d 1102 (9th Cir. 2007) Ramey v. Darkside Prod., Inc., 2004 WL 5550485 (D.D.C. 2004) Santa Clara Cnty. Local Transp. Auth. v. Guardino, 11 Cal. 4th 220 (1995) Shulman v. Group W Prod., lnc., 18 Cal. 4th 200 (1998) Slivinsky v. Watkins-Johnson Co., 221 Cal. App. 3d 799 (1990) Stewart v. Rolling Stone LLC, 181 Cal. App. 4th 664 (2010) Thompson v, Home Depot, lnc., No. 07-cv-l058 (lEG), 2007 WL 2746603 (S.D. Cal. Sept. 18,2007) Troyk v. Farmers Group, Inc., 171 Cal. App. 4th 1305 (2009) . . 16 5 7 12 9, 10, 11 12, 13 10, 11 18 18 : 9 16 10 8, 13, 14,15 10
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FACEBOOK, INC. 's MPA I1SIO DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE
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No. BC444482
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TABLE OF AUTHORITIES (continued) Page \Virginia State Ed. of Pharmacy v. Virginia Citizens Consumer Council, I 425 U.S. 748 (1976)
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10, 11
16
13
18
7
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Communications
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passim
passim 17
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5
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CLfomia
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FACEBOOK, INc. 's MPA I1S/0 DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE No. BC444482
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\OTHER AUTHORITIES
'CAL. CONST. art.
I,§ 1
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CAL. CONST.
7
8
9
art. I, § 2
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10
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15 16 17 18 19
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~vNo. BC444482
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INTRODUCTION AND SUMMARY OF THE ARGUMENT Facebook is a social network that enables users to connect and share content with their
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network of Facebook "friends" and also creates a profile page on which to post information that the User wants to share with his or her network of friends, and on which the User's friends can ~so post greetings and other information. To create a profile, a User need only submit his or her
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name, age (Users must be over the age of thirteen to use Facebook), gender, and a valid email address; the User may also, but is not required to, upload a "profile picture." Facebook enables Users to share information and comments about virtually anything-such news about their day, or opinions about world' events.
as vacation photos,
10 11 12
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friends that they "like" certain content, such as a political figure, product, brand, website, musician, or cause. Facebook is, and has always been, a free service. . '
The Complaint, brought on behalf of a putative class of minors ages 13 tluough 17 who ~e Facebook members, alleges that Facebook 's very operation-in particular, Facebook's re-
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dublication of a User's "likes" along with the User's name and/or likeness to the User's friends, the very audience with whom the User already shared the information-violates
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(I) California
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Civil Code section 3344, (2) the California constitutional right to privacy, and (3) the California Unfair Competition Law, Business and Professions Code section 17200. The Complaint also
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alleges, contrary to fact, that Facebook enables minors to create public search listings (which the Complaint calls "landing pages")-i.e.,
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and/or likeness, that can be found by searching for the User's name on Google or other search e4gines.
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Plaintiffs allege that Facebook uses those listings to encourage the searcher to join
F~cebook, which increases Facebook's User population, thereby enabling Facebook to demand a higher price for advertising on the website.
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COO1..EYLLP
ATlOlluHU AT LAW SAN FIIAtKJSCO
Decency Act, 47 U.S,C. § 230, bars all the causes of action, which attempt to hold Facebook
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Plaintiffs' three causes of action fail as a matter of law. The federal Communications
liable for re-publishing information content provided by the Users themselves (their names, likenesses, and "likes"). As many courts have held, this statute, expressly enacted to promote the
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F rEBOOK,
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INC.'S MPA 1IS/0 DEMURRER TO PLAINTIFFS' CLA&< ACTION COMPLAINT - CASE No. BC444482
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.development 2 3 4 5 6 7
of the Internet
and interactive
media,
protects
websites
from liability
for re-
publishing information posted by users. For this reason alone, the Demurrer should be sustained.
Even if the three causes of action were not barred by 47 U.S.C. § 230, the Demurrer
should be sustained because the Complaint fails to allege facts necessary to support one or more
re-publication
of a User's
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~hared information.
so when the Court construes the statute, as it must, in concerns that would be raised by a ruling that would brand, political
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fails to allege the injury necessary to state a claim under section 3344, that Facebook uses names dr likenesses for its "advantage"
of
Second, Plaintiffs'
not and cannot allege they suffered "injury in fact" and "lost money or property"
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Third, Plaintiffs do
as a result of Business and
uhfair competition,
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Professions
Code section 17200. Moreover, the Complaint fails to allege facts that would support "fraudulent," or "unfair" prongs of section 17200.
F1r these reasons, the Demurrer should be sustained and this case should be dismissed.
II. I
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STATEMENT OF FACTSJ
According to the Complaint, Facebook operates a free social networking website with
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(Compl.,
must include their names, and may, but need not, include a "profile picture" chosen and uploaded
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1 This Stat~ment of Facts is based on the allegations in the Complaint, which Facebook assumes as\ltrue for purposes of this Demurrer but which Facebook does not thereby admit.
2.
FACEBOOK,
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FR,,}.ICISCO
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(fd. , IS.) Through their profile pages, Users can create a network of friends and
preferences, and other information, including
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!photos and videos. (ld." 12, 15.) For instance, a Facebook User might post a comment about a ~ ipolitical figure and encourage his or her friends to vote in upcoming election-a comment that
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jwould appear on the User's Facebook profile page. Ito each of the User's friends on their respective
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The Complaint
a Facebook (Compl,
User might
share with
friends is the fact the User "likes" certain content. that he or she likes a particular website,
'iI 22.)
10mmunicate
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political
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lervice, idea, or cause. (ld.) Facebook helps Users communicate ~uch news contextually on 'friends' Facebook pages.
~ewlY released CD appears on a User's page, that User might be interested friends think about the music; if a friend has communicated
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might alert the User to that piece of social news, indicating at the same time the ad appears that
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recognizes,
is
gets information
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"when their social interaction has indicated that they like a particular web site, person, product or service"; "Facebook encourages its members to communicate such 'Iikes'" but it is Users who the infonnati~n
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Facebook re-publishes
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Users can and do use a range of photos for their profile pictures, including pets, cars, nature scenes, etc. The Complaint does not allege that the named Plaintiffs uploaded a profile picture that was an actual "likeness" of themselves. .
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3. No. BC444482
, ACEBOOK, INC. 's MPA US/O DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE
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:minors' I
The Complaint
primarily
on
use of Facebook
their parents'
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'focuses on Facebook's
re-publication
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Plaintiffs say, violates Civil Code section 3344, the California constitutional Code section 17200.
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public
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alleges, contrary to fact, that Facebook enables minors to create a calls a "landing page") that can be found when
~omeone searches for the User's name on Google or another search engine.
io the
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Complain~, Facebook
picture), to encourage non-users to join Facebook by requiring the non-user to log in to see more
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User population,
thereby
this supposed use of minors' names and likenesses violates Civil Code section 3344, I California constitutional right to privacy, and Business and Professions Code section 17200.
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LEGAL STANDARDS
A complaint or cause of action can survive demurrer only to the extent it sets forth wellI pleaded facts that establish a right to relief. See Longshore v. Cnty. of Ventura, 25 Cal. 3d 14,22 (1979). clnstitute cJntain
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A demurrer
must be sustained
to
must
facts constituting
[each]
cause of action."
Id. § 425.10(a)(1)
as true, "the of law and
Although the Court must accept all material factual allegations deductions, or conclusions
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COOI.EYLLP
ATTORNHS
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See Gentry v, eBay, Inc., 99 CaL App. 4th 816. 824 (2002).
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The putative class is limited to Facebook Users under the age of 18. (Cornpl. ~ 8.) I Facebook's terms of use, one must be at least 13 years old to use Facebook .
Under
LA.W
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DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE
SAN fJl.ANCI5CO
F'ACEBOOK.INC.'S MPA
No. BC444482
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IV.
ARGUMENT
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A. I
47 U.S.C. § 230.
Decency Act,
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user of an interactive
or speaker
of any Section
information
content provider."
§ 230(c)(I).
230 further provides that "[n]o cause of action may be brought and no liability may be imposed
Id. § 230(e)(3).
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10 11 12 13 14 15 16 17 18 19 20 21
Facebook,
Inc., No. 102578/09, 2009 N.Y. Misc. LEXIS 3021, at *4 (N.Y. Sup.
motion to dismiss under § 230).
ct.
Sept. 15,
§ 230, "Congress
intended to
Barrett v. Rosenthal, 40 Cal. 4th 33, 57 (2006) (affirming grant of motion to strike based § 230).
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This immunity springs, in part, from the desire to "avoid the chilling effect" on online speech that
8p2-03 (2007). COA immunity has specifically barred causes of action arising out of California's
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See Delfino v. Agilent Tech., Inc., 145 Cal. App. 4th 790,
right of publicity.
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See Carafano v.
(~pholding
also Perfect 10 Inc. v. CCBm LLC, 488 F.3d 1102, 1118 (9th Cir. 2007) (affirming website's
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§ 230 immunity for interactive dating website against right of publicity claim); see
expressed
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of the Internet from various state-law regimes"). and constitutional causes of, action.
state statutory
R. v. City of
lak causes of action, including waste of public funds (Cal. Civ. Proc. Code § 526a), public
nJisanee (Cal. Civ. Code § 3479 rlnunity
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Section 230 immunity requires that (1) the defendant be a provider or user of an interactive computer service, (2) the cause of action treat the defendant as a,publisher or speaker lof the information, and (3) the information be provided or developed by another information \content provider. See Gentry, 99 Cal. App. 4th at 830 (§ 230 immunizes interactive computer
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service providers "from causes of action asserted by persons alleging harm caused by content ~rovided by a third party" where these three factors are met).
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All three § 230 requirements are met here. First, Facebook is undoubtedly an "interactive
'~omputer service," which is defined as any information service that provides or enables computer access by multiple users to a computer server and the Internet. See 47 U.S.C. § 230(f)(2); see , I also Finkel, 2009 N.Y. Misc. LEXIS 3021, at *4 (Facebook is an interactive computer service kder
because its website enables users to "provide information (feedback) about other users of the I service")~ Delfino, 145 Cal. App. 4th at 805 (noting "[c]ourts have broadly interpreted the term I . 'mteractive computer service,'" citing authorities).
§ 230); Gentry, 99 Cal. App. 4th at 831 n.7 (eBay is an interactive computer service
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Second, Plaintiffs' claims seek to treat Facebook as the publisher or speaker of the
ihformation at issue. The Complaint acknowledges that Users voluntarily communicate that they like a "particular web site, person, product or service." (Compl. ~ 22.) It nonetheless attempts to Jold Facebo~k liable for re-publishing this information along with the minor's name andlor
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likeness to the User's friends. (Compl. ~~ 31,41, 45.) The Complaint also alleges that Facebook p~rmits Users to create profile pages that may include their names and likenesses and control privacy settings, with the result that individuals who perform an Internet search for a User's name
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tJat Facebook is liable for publishing the names andior likenesses on landing pages, even though Je User selects how this information is disc1o~ed. (CompI. ~~ 26, 31,41, 45.) Third, the information was provided or developed by another information content provider, namely by the Plaintiffs themselves. All such information, including a User's name and likeness and opinions about content he or she likes, is voluntarily provided by Users. (Cornpl. ~~ I 1l19.)
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Users often share with their network of friends a v,ariety of information, including
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CASE No. BC444482
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(Compl. ~ 15.)
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Facebook Users may also communicate to their friends the fact that they like "a particular web
Isite, person,
product or service." (Compl. ~ 22.) And Facebook informs Users, "[y]ou can use
~our privacy settings to limit how your name and profile picture may be associ~ted with commercial" content on the website. (Compl. ~ 26.) Thus, according to the. Complaint itself, it is Plaintiffs themselves, as Facebook Users, that provided all of the information at issue, including
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their names, likenesses, and indications of items they like. The law is clear that a user of a
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rebsite constitutes "another information content provider" for purposes of § 230. See Gentry, 99 Cal. App. 4th at 831 (website operator cannot be treated as the publisher or speaker of content Jrovided by other information content providers, i.e., the website users).
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Nsers' "likes" with advertising content displayed on friends' profile pages does not alter this ahalysis, because the content itself originated with Facebook's Users. Courts uniformly hold that Jebsites do not lose immunity under § 230 based on the performance of editorial functions such al deciding whether to publish, withdraw, postpone, edit, or alter content provided by their users.
See Finkel, 2009 N.Y. Misc. LEX]S 3021, at *4 (Facebook entitled to immunity under § 230 as a
matter of law, even if it had an «active, even aggressive role" in making content available); Gentry, 99 Cal. App. 4th at 835 (liability for editorial functions has been "uniformly rejected by tJe courts"); Zeran v, Am. Online, Inc. 129 F.3d 327, 330 (4th Cir. 1997) (§ 230 precludes courts fr~m entertaining lawsuits that "would place a computer service provider in a publisher's role" even if they exercise traditional editorial functions, so long as the content originated with a thirdplty user); Ramey v. Darkside Prod., Inc. 2004 WL 5550485, at *7 (D.D.C. 2004) (defendant
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was not an information content provider merely because it edited the ads posted on its website).
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T~is is so even when websites use neutral tools to categorize the content provided by users or
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Valley v, Roommates. com, LLC, 521 F.3d 1157, 1172 (9th Cir. 2008) (fact that "interactive I
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the underlying
information'")
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1640 F. Supp. 2d 1193, 1198 (N.D. Cal. 2009) (by providing a keyword search tool to advertisers
!WhO used
\ooogle
1
Google did not become the content provider even if so long as the that Facebook are
"should have known" tha~ the tool would lead to the improper posting, determined what content to post). information Thus, Plaintiffs' allegations
User-published
about content the. User likes, so that such "likes" do not make Facebook
'.
content provider.
allegedly
including the name and profile picture the User provided, which may be found when non-users ~erform an Internet search, does not transform Facebook Accordingly,
into an information
content provider.
Facebook is entitled to § 230 immunity here. In that case, a California court applied § 230 to Plaintiffs in Gentry had sued over
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allegedly false or misleading feedback created through eBay's system of rating buyers and sellers. 99 Cal. App. 4th at 822.
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The Court rejected the claim, noting that it "would place liability on
lBay for simply compiling false and/or misleading c~ntent created by the individual defendants," even though eBay itself did not provide the information.
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ld. at 834.
information
To state a claim under Civil Code section 3344, Plaintiffs must allege (1) defendant's identity; (2) the appropriation of plaintiffs name. or likeness
olf plaintiffs
to defendant's
or otherwise; (3) lack of consent; (4) resulting injury; (5) a knowing use of advertising; and (7) a direct connection between the
Fleet v,. CBS, Inc., 50 Cal. App. 4th 1911, 1918 (1996);
Newcombe v. Adolf Coors Co., 157 F Jd 686, 692 (9th Cir. 1998). Because the Complaint does
nlt allege facts supporting several ofthese
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elements, it fails to state a claim for either Facebook's oflanding pages. Further, Plaintiffs' re-
A-r LAW'
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\publication
allegations
Facebook's
by the
I "newsworthy"
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Facebook's re-publication of the fact that a User likes certain products and services is newsworthy and exempt under section 3344(d).
allege that Facebook violates section 3344 when it re-publishes to a minor
Plaintiffs
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iUser's friends that the User likes a product or service, along with his or her name or likeness, in ~ssociation
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friends. from
Section
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3344(d),
speech
the statute,
or likeness in connection
with any
hews, public affairs, or sports broadcast or account, or any ·political campaign, shall not constitute
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(a)."
Because
Facebook's
!
alleged use of Users' names and likenesses falls within this "newsworthy" challenge to Facebook's re-publication
exemption,
the Complaint's
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;
What is "newsworthy"
is broadly construed,
amusement
or enlightenment,
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See
Shulman v, Group W Prod., Inc., 18 Cal. 4th 200, 225 (1998) (citing Rest. 2d Torts § 652D, com.
j,\ p.
I
393).
is related to
information
News, Inc., 34 Cal. App. 4th 790, 793 (1995) (dismissing claim under section 3344(d) because rep~blication of football player's image "report [ed] newsworthy
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see also
Dora v. Frontline Video Inc., 15 Cal. App. 4th 536, 546 (1993) (holding section 3344(d)
precluded claim for use of likeness in surfing documentary aJout things, people, and events that affect it"). because the public is "entitled to know
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The California
Supreme
that "legitimate
interest"
analysis
for
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"newsworthy"
of private
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See
18 Cal. 4th at 214-16 (critical issue for both tort and constitutional or absence of a "public interest," noting that "the requirements
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Ipresence
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!Constitution have generally been assumed to be congruent" (citing Rest.2d Torts. § 652D, com. d, !p. 388)); see also Stewart v. Rolling Stone LLC, 181 Cal. App. 4th 664, 681 (2010) ("the tort of iappropriation
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protections").
p344(d). \
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For instance, in Paradise Hills Assoc. v. Procel, the protects a consumer's statements and signs about The court
Court of Appeal held that the First Amendment the quality of a developer's
construction.
JeCOgniZed that members of the public have an interest in "improvjing] their relative position vis-
,IS
16
and manufacturers
of consumer
goods"
lr
18 19 20 21 22 23 24 25
:-: ,,'
opinion I
about
a product
is therefore
protected
by the First
Morningstar, Inc. v. Superior Court of Los Angeles Cnty., 23 Cal. App. 4th 676, 697 (1994) I ,
(bpinions analyzing advertisements for financial products are protected by the First Amendm~nt); n.58 (1985) (consumer opinion about commercial products
L!owe v.
siCh as loudspeakers
s.sc..
and marketable securities are protected speech under the First Amendment);
Virginia State Bd. of Pharmacy v. Virginia Citizens Consumer Council, 425 U.S. 748, 764-65
(1976) (society has "a strong interest in the free flow of commercial
information
....
So long as
free enterprise economy, the allocation of our resources in large It is a matter of public
26 27
interest that those decisions, in the aggregate, be intelligent and well informed.").
I
COOLEY LLP
ATTORNEYS AT
LA'"
1O.
rCE800<, INC. 's MP A I/S/O DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE NO. BC444482
SAN' ~."NC:IS,CO
1 2
I
Under this established precedent, there can be no question but that the speech at issue here is a matter of public concern. When a Facebook User says that he or she likes certain contentUser is communicating to
3 4
his or her friends an affinity for that content, and there can be no dispute that the User's friends
5
6
that communication.
In such a circumstance,
7
8
9
I
kppeal,
in turn, is dispositive
10
11
I know, I I I
of matters in the public interest, which rests on the right to the public to
and the freedom of the press to tell it, cannot ordinarily be actionable."
'
Shulman, 18 Cal. 4th at 225 (a publisher has "broad discretion to publish matters that are of
.1
12 13 14 15 16 17 18
19
legitimate
public interest");
of the [and]
press is a 'fundamental
j ..
I
comprehends
and opinion").
By re-publishing a User's name or likeness along with an indication that they like content being
advertised on its website, Facebook provides a forum for authentic endorsements genuinely and without pecuniary motive have expressed their approvaL
1
by persons who
valuable
I
1
interest
inasmuch
as the information
.
is re-published
friends-persons
relationship
20 21 22 23 24 25
','
"
.,(
recognized
interest. 3344(d)'s
Plaintiffs'
I
"
'I;~
" :1:
.,
26
27
4! Although
I.
28
COOLEVLLP
ATTOI.NEY5 SAN AT
LAW
the Complaint focuses on the issue of parental consent under section 3344(a), no consent is required because the section 3344(d) exemption is satisfied. Nevertheless, Facebook does not concede that there was insufficient consent;
11.
No. BC444482
fu
NCISCO
F ACEBOOK, INC. 's MP A 1/8/0 DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE
1 2 3 4
I
2.
by the doctrine
of
I
i
problems
is "fairly possible,"
5 6
See INS v. St. Cyr, 533 U.S. 289, 299-300 (2001) (superseded by
~tatute on other-grounds); see also Santa Clara Cnty. Local Transp. Auth. v. Guardino, 11 Cal.
fth 220, 230 (1995) (Court "will not decide constitutional questions where other grounds are i available and dispositive of the issues of the case"). As shown above, Plaintiffs' claim under
I
7
8 9
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
COOLEyLLP
ATtolHun SA"" FR,Ir, In LA,..
","CISC;O
questions
to the United
and Article I, Section 2 of the California Constitution. protection for the fundamental right of free speech,
Constitution
broad
"independently
Plaintiffs'
as a subject in which the public has a legitimate interest. alleged re-publication This
~ithin
I
I
the
"newsworthy"
exemption
of
section 3344(d).
construction
cbnstitutional
I
3.
The Complaint fails to allege facts that would support the elements of section 3344. .
Even if section 3344(d) did not preclude the section 3344 cause of action, the Complaint
does not allege the facts necessary to support all elements of a claim under section 3344.
1
a.
Slivinsky v. Watkins-Johnson Co., 221 Cal. App. 3d 799, 807 (1990). The Complaint makes only
conclusory allegations regarding Plaintiffs' damages" and "non-economic
See
injuries, stating merely that they sustained "economic as a result of the unauthorized, commercial use of their
damages"
(Compl. ~~ 34, 35.) A demurrer does not assume the truth of contentions, 12.
jACEBOOK, INC. 's MPA IfSIO DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE No. BC444482
1 2 3
4
'ldeductions, or conclusions of fact or law. See Daar v. Yellow Cab Co., 67 Cal. 2d 695, 713
\(1967). Instead, the Complaint must make factual allegations of economic or non-economic iinjuries that would support such a legal findin~. Injury under section 3344 may be economic or
5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 :';
.<\
non-economic, but some injury is a necessary element of the cause of action. See Downing v.
!Abercrombie & Fitch, 265 F.3d 994, 1001 (9th Cir. 2001) (resulting injury is a necessary element lOfc1aimunder section 3344); see also Abdul-Jabbar v. General Motors Corp., 85 F.3d 407, 416
(9th Cir. 1996) (injury may be economic or non-economic), Non-economic damages may include
I
mental distress or injury to reputation, and mental distress may include «'shame, humiliation,
I .
embarrassment, {and] anger.?' See Waits v. Frito-Lay, Inc.• 978 F.2d 1093, 1103 (9th Cir. 1992).
I
The Complaint alleges no facts that would support"a finding of economic or non-economic
injury. The Complaint does not allege when or in which advertisements Plaintiffs' names or likenesses were used, or that Plaintiffs' names or likenesses appeared on any "landing page" JeSulting from an Internet search, Plaintiffs do not allege that they were embarrassed or suffered
I
~hame or anger as a result of the alleged use of their name and likeness, nor do they allege that they normally would have been reimbursed for the use of their names or likenesses.
\
I
Failure to allege injury defeats a section 3344 misappropriation claim. In fact, "[rjesulting
injury is the sine qua non of a cause of action for misappropriation of name." See Slivinsky, 221 Cal. App. 3d at 807 (affirming summary judgment where plaintiff failed to allege how truthful
I
likenesses on a "landing page" or associated with an advertisement caused them injury. their Complaint should be dismissed for failure to state a claim.
II
b.
I
\
The Complaint fails to allege that Facebook uses names or likenesses for its advantage, commercial or otherwise,
Both the common law and section 3344 distinguish between the use of a name or likeness
for a party's own benefit and an incidental use of that name or likeness. Plaintiffs do not state a claim, therefore, unless they allege facts demonstrating that Facebook uses the names and
I
26 27 28
COOLEyLLP
I.
::~
>
'I ~.
"
:1:
cll. Civ. Code § 3344(a). The Ninth Circuit has usefully defined this element as it relates to \ 13.
~ ACEBOOK, INC. 's MPA IlSJO DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAIl\T - CASE No. BC444482
'1
AlTQRN'EY5
A.llAW
SAN FAANCUiCO
I
I
a misappropriation
claim
2
3 4
against Time Magazine and the Coors brewing company arising from an advertisement the image of a famous baseball player in a Coors advertisement without his consent.
that used
Id at 693.
In analyzing the claim, the court held that because the image was part of the beer advertisement, plaintiff had adequately demonstrated
I
5
6 7
that use of the likeness "could not be said to have directly benefited Time" because "the benefit \[Time] received-payment ladvertisement."
I
space-was
unrelated
to the contents
of the
8 9 10 11
12 13 14 15 16 17 18 19
Id. In short, Time Magazine received the same benefit, payment for advertising
space, regardless of the ad's content or efficacy. Like Time Magazine, sale of the advertised product. Facebook is not an advertiser, nor does it earn revenues from the
Rather, third parties use Facebook to display their advertisements space. (Compl. ~ 21.) As the Ninth Circuit "commercial or
held in Newcombe, this sort of financial benefit is not the type of "advantage," lotherwise," that is actionable under section 3344. Nor does the Complaint adequately allege that publication ,'landing pages" is for Facebook's "advantage." The Complaint
name or likeness is associated with any product or that Facebook receives direct revenue from the bUblication of th~ landing pages.
I
likeness to be associated
I
with a Facebook "landing page" that informs the searcher the User is a to join Facebook's enabling free service, the publication increases
20
21
6ember
I
and permits
the searcher
Facebook's
I
"thereby ~ 21.)
Facebook incidental,
to demand attenuated
22
23 24 25
1dvertisement." . 1dvertising
I
This alleged
by the statute.
c.
I
The Complaint fails to allege that publication pages" is for "the purposes of advertising."
of "landing
The Complaint
summarily
states that the purpose of the "landing page" is "solely to give to join Facebook. 14. (Compl. ~ 20.) Plaintiffs' own
and incentive"
COOLIOYU.P
ATTORN£YS.
SAN
AT LAW
FRANCISCO
FACEBOOK, INC.'S MPA 115/0 DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE NO. BC444482
1 2
allegations, however, demonstrate that the landing pages serve a different and more fundamental purpose: they provide information in response to Internet searches, and do so in a form that (See id (page is designed for "people conducting Google or other
internet search engine searches of names of persons who are Facebook members, so that the search result will not lead tothe Facebook pages" and "[t]he purpose of the landing page is not to reveal the content of a member's page"). Thus, although the Complaint asserts the purpose is "solely" to invite the searcher to join Facebook, the landing page (l) informs the searcher that the User is a Facebook member (if the User has selected privacy settings that would reveal this
-. information on a public Internet search) and (2) protects the User's privacy by limiting the
8
9 10 11
information that may be revealed. Although a demurrer must treat all factual assertions as true. the Court need not accept conclusions of fact or law that are contradicted by the factual assertions
I
12
13
in the Complaint.
Because, as alleged, the "landing pages" primarily provide information and Plaintiffs have not adequately alleged that the landing pages are
protect
privacy,
14 15 16 17 18 19 20 21 22 23 24 25 26
27
:1:
Coou" LLP
A1TORNEVS.h
SAN FIl:ANCISCO
I II
"advertisements"-anecessary
c.
Plaintiffs Fail to State a Claim for Violation of the California Constitutional Right to Privacy.
To state a claim for violation of the California constitutio?al right to privacy, Plaintiffs must allege facts sufficient to establish: "(1) a legally protected privacy interest; (2) a reasonable expectation of privacy in the circumstances; and (3) conduct by defendant constituting a serious See Hill v. Nat'l Collegiate Athletic Ass'n, 7 Cal. 4th 1, 66 (1994).
. invasion of privacy,"
Plaintiffs allege that Facebook's conduct "constitutes a violation" of the California Constitutional right to privacy (Cornpl, ~ 41), but fail to allege even the bare elements of the claim, much less facts in support of their erroneous legal.conclusion, See Evans v. City of Berkeley, 38 Cal. 4th 1,
6 (2006) (courts "treat the demurrer as admitting all material. facts properly pleaded, but not contentions, deductions or conclusions of fact or law").
1.
Plaintiffs fail even to mention a legally protected privacy interest, much less allege facts in support of one. Plaintiffs do not allege that they posted any private personal information to 15.
F ACEBOOK, INC.'s MPA US/O
DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE NO.
28
LAW
BC444482
I I Facebook
I
at all.
In fact, they imply only that they posted, their names, and perhaps their
2
3 4 5 6 7 8 9 10
: likenesses, to Facebook. (See Compl. ~~ 5-6; supra n.2.) But even if Plaintiffs 'had adequately
i
;alleged the posting of their names and likenesses. they have no legally protected privacy interest in such information. California courts have held that no privacy interest exists in one's name and likeness. See Vo v. City of Garden Grove, 115 Cal. App. 4th 425, 448 (2004) (no legally
protected privacy right in customers' physical features); Moreno v. Hanford Sentinel, Inc., 172
I
I Cal. App.
4th 1125, 1130 (2009) ("[Plaintiffs] last name was not a private fact"); see also Hill v.
!National Collegiate Athletic Assn., 7 Cal. 4th 1,40 (1994) (whether a legally protected privacy Ijinterestexists is "a question of law, to be decided by the court."). Accordingly, Plaintiffs have failed to allege facts demonstrating a legally protected privacy interest.
I
11 12
13 14 15 16 17
2.
expectation
of privacy in the
I I
1
Plaintiffs have also not alleged and cannot allege that they had a reasonable expectation of The Complaint suggests that Facebook improperly disclosed Plaintiffs' names and in which no reasonable expectation of privacy exists. See Hill, 7 Cal. 4th at 37
privacy.
likenesses-items
C'A 'reasonable' expectation of privacy is an objective entitlement founded on broadly based and
"
lid~IY accepted conununity norms"); People v. Herrera, 124 Cal. App. 3d 386, 389 (1981) ("Information contained on a driver's license does not give such rise to a person's reasonable ~xpectation of privacy").
18
19 20 21
Further, Plaintiffs fail to allege disclosure of any non-public could they claim-that their names and likenesses were
Aot already in the public domain, and "[a] matter that is already public or that has previously become part of the public domain is not private."
I
22
23 24 25 ::
',',
(citation omitted).
26 27
JOluntarily sharing it on to a social networking website-s-a website used "to share information I Jrith others." (ld. ~ 15.) Indeed, as the Court of Appeal recently noted, the affirmative act of
I
":
"
posting information to a "hugely popular Internet site" renders the posted information not private.
I
See Moreno, 172 Cal. App. 4th at 1130 ("Under these circumstances, no reasonable person would
COOLEYLLP
ATTORNIi.Y§. AT LA.W
I
I
16.
SAN Fu
NCI5CO
IFACEBOOK. INC. 's MPA 118/0 DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE NO. BC444482
,
,
1 2
provide The
I their names when creating a Facebook profile and may elect to upload a profile picture.
\ "like" information that Plaintiffs claim was re-published to their Facebook
3
4
I been
posted by them to that exact same group. (Compl. ~ 22.) Further, Plaintiffs admit that Users via privacy settings, whether their name and likeness will be publicly displayed on
5
6 7
I select, Icause
Plaintiffs'
8
9 10 11 12 13 14
I
3.
Plaintiffs allege generally that "[a]s a direct and legal result of the Constitutional herein alleged. plaintiffs damagea ....
I
economic
and non-economic
"
(Compl.v[
But "[ajctionable
~erious in their nature, scope, and actual or potential impact to constitute an egregious
I
I.
15
16 17 18 19 20 21 22
website is an egregious breach of social norms, much less a serious invasion of privacy. I .
D.
Plaintiffs Fail to State a Claim for Violation of California Professions Code Section 17200.
Business and
: For several reasons, Plaintiffs' purported claim under California's I Law ("VCL") fails to state a claim upon which relief can be granted.
Unfair Competition
I I
First, Plaintiffs lack standing to sue under the VCL because they have not alleged, and
cannot allege that they "suffered injury in fact and ha[ve] lost money or property as a result of sluch unfair competition." 23 24 25
"~I
Rights v. Mervyn's, LLC, 39 Cal. 4th 223, 227 (2006); Animal Legal Defense Fund v. Mendes,
I
Plaintiffs' failure to allege any invasion of privacy is confirmed by their failure to allege anything more than general "economic and non-economic damages" from such an invasion. (See Cornpl. '42.) Nowhere do Plaintiffs specify what type of "non-economic" harm they allegedly suffered, or how that harm occurred. (See id. 135 (alleging "non-economic damages as a result of the unauthorized, commercial use of their names and likenesses").) As for Plaintiffs' alleged economic damages, they allege a speculative "loss of advertising revenue," but no harm from any alleged invasion of privacy, (See id. ~ 34.)
5\
:,1
26 27 28
COOl.E'<LLP ATlou:ns A.T
LAW SAN f',U.:NCISCO
I
IJS/O DEMURRER
17.
TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE
NO. BC444482·
"
Plaintiffs'
advertising
of Civil Code section 3344 (CompI. ~ 34) is do not allege how they purportedly "lost" this
3 4 5 6 7
I insufficient I alleged
I
I
revenue, nor do they allege that they paid or otherwise tendered money to Facebook-an
iallegation they could not legitimately make, given that Facebook is free. Plaintiffs cannot allege
I
but for
Plaintiffs thus cannot allege anything other than the most ill-defined that are insufficient to support a section 17200 claim. proposition
8
9
See Troyk v.
adding the
~armers Group, Inc., 171 Cal. App. 4th 1305 (2009) (the California
. 10
11 12
I
I
or "hypothetical"
13
14 15 16 17 18 19 20 21 22 23 24 25 26
"I_
"
\
!
Second, Plaintiffs
alleged
that Facebook
acted "unlawfully"
in
contravention
of the VCL. Plaintiffs purport to allege Facebook violated Civil Code section 3344
Jnd article I, section I of the California Constitution. However, as shown above, Plaintiffs have I failed to allege facts sufficient to state either of those claims, and thus Plaintiffs' claim under the
I
'iunlawful"
I
fails as well.
i
I
I I
Third, Plaintiffs have not alleged facts showing that Facebook acted "fraudulently"
Although Plaintiffs allege broadly' that Facebook's
within
~i45),
I
"Unfair competition
by Facebook anywhere
"
27 28
COOLEVLLP
AnORIH_Y5
SAN
.,' ,.1
d',
information has no compensable value. See (lEG), 2007 WL 2746603, at *3 (S.D. Cal. Sept. 18, 2007) (rejecting argument that personal information could constitute property under the VeL, citing cases for proposition that personal information has no intrinsic or economic value); JetBlue Airways Corp. Privacy Litigation, 379 F. Supp. 2d 299, 327 (E.D.N.Y. 2005) (there "is no support for the proposition that an individual['s] ... personal information has or had any c4mpensable value in the economy at large"). . 6 :Other courts have concluded
that personal
AT
LAW
I
I I
18.
FiRA.NCI5CO
FACEBOOK, INC. 's MPA I/S/O DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE No. BC444482
'.
.
1 even allude to any fraudulent or deceptive act by Facebook. What they do allege is that Facebook "encourage[d] children to join the Facebook social networkingsite to engage in communication
2 3 4 5
6
I and
exchanges with their friends as an authentic experience, while . . . using their names and (Id.) But
\likenesses for coinmercial and marketing purposes without their parents' consent."
Ithere is no alleged connection between the alleged statements of encouragement and any claimed use of the Plaintiffs' names and likenesses. Plaintiffs never allege, and cannot allege, that
7
8 9
iFacebook misrepresents a User's "likes," because that information is only posted to Facebook
I
'after a User voluntarily communicates that he or she likes something (whether a person, place,
I
10
11
I I I
idea, or product) found on Facebook.7 Fourth, Plaintiffs have not alleged facts showing that Facebook acted "unfairly" within
~hemeaning of the UeL. Plaintiffs state baldly that Facebook's actions are "unfair" to consumers
12
13
I
I
(Compl. ~ 45), and seem to imply that this unfairness flows from Facebook's reputation as a kocial network in which users "engage in communication and exchanges with their friends as an Lthentic experience." But they do not allege how Facebook's landing pages or its re-publication
14
15
bf
social news (e.g., that a Fac~book user likes something) renders Facebook Users' social experience-including the communications Facebook Users share with one another-
16 17
18
ttworking
Jomehow inauthentic.
insufficient to state a claim under section 17200. \ California courts have held that in order to state a claim for an "unfair" business practice
19 20 21 22 23 24 25 26 27 28
COOlEYLLP
ATTORN[VS AT LAW
ih the context of a UCL consumer action.' a plaintiff must allege facts sufficient to establish: (1) substantial consumer injury; (2) that the injury is not outweighed by countervailing benefits to
I
I
7 Nor have Plaintiffs alleged the required element of reliance. See In re Tobacco II Cases, 46 Cal. 1 4th 298, 326 (2009) ("[R]eliance is proved by showing that the defendant's misrepresentation or nondisclosure was 'an immediate cause' of the plaintiffs injury-producing conduct. A plaintiff may establish that the defendant's misrepresentation is an 'immediate cause' of the plaintiffs conduct by showing that in its absence the plaintiff <inall reasonable probability' would not have engaged in the injury-producing conduct" (internal quotation marks and citations omitted)).
Cel-Tech Commc 'ns., Inc. v. Los Angeles Cellular Tel. Co., 20 Cal. 4th 163, 185 (1999), the California Supreme Court reviewed definitions of "unfair" that had been developed by the lower courts and concluded they were "too amorphous and provide [d] too little guidance to courts and businesses." The Court adopted a test for competitor actions, but did not decide what test should apply in consumer actions. Id. at 186-87.
I
8:In
i
FACEBOOK, INC. 's MPA
19.
IIS/O
DEMURRER TO PLAINTIFFS' CLASS ACTION COMPLAINT - CASE
S"N
F'KA.Ncl~(o
No. BC444482
.,
1-\.,
I
.,
1 \ consumers; and (3) that the injury is one that consumers could not reasonably have avoided.
2 3 4 \ Camacho v. Auto. Club olS Cal., 142 CaL App. 4th 1394, 1403 (2006) (referring to factors under \ section 5 ofPederal Trade Commission Act, codified at 15 U.S.C. § 45(n»; accord Davis v. Ford
I Motor Credit Co. LLC, 179 Cal. App. 4th 581, 596 (2009).9 Here, as discussed above, Plaintiffs
lhave not pled any injury, let alone "substantial" injury. Nor have they suggested that any such injury is "not outweighed by countervailing benefits to consumers." On the contrary, they [acknowledge the benefit to consumers, admitting that "[0]ne of the primary reasons people use
I
5
6 7 8 9 10 11 12 13 14
'Facebook is to share information with others" (Compl. ~ 15), information that includes the fact
Ithat particular
I I
Facebook Users like certain things or that the User is a Pacebook member.
[Iherefore, Plaintiffs' claim under the "unfair" prong of section 17200 should be dismissed.
Finally, Plaintiffs cannot assert a claim for monetary relief. Under the UeL, monetary
}elief is limited to restitution, see Korea Supply Co. v. Lockheed Martin Corp., 29 Cal. 4th 1134,
I
r
\
1148 (2003), and Plaintiffs do not and cannot allege they paid money to Facebook. CONCLUSION Por the foregoing reasons, Facebook respectfully requests that the Court sustain its
15
16 17 18 19 20 21 22 23 24
COOLEYLLP
~D~/MJ,D/
Matthew D. Brown
25
.,' .'
.,'
.:1-
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A TTORNEy:; AT LAW SA. N FRAN CISCO
~fter Cel-Tech, courts have used two other tests. Drum v. San Fernando Valley Bar Ass'n, 182 CaL App. 4th 247,256 (2010). One requires that the public policy allegedly violated be "tethered td specific constitutional, statutory, or regulatory provisions." The other, essentially a pre-CelTech test, requires that the business practice be "immoral, unethical, oppressive, unscrupulous or substantially injurious to consumers" and that the court "weigh the utility of the defendant's conduct against the gravity of the harm to the alleged victim." Id. at 256-57. Plaintiffs fail to allege unfairness under either test, as they allege neither a "specific constitutional, statutory, or regulatory provision" nor harm substantial enough to outweigh the utility of Facebook's services.
9
\
\
20.
CASE
No. BC444482