Fraley v. Facebook, Inc.
830 F. Supp. 2d 785
| N.D. Cal. | 2011Background
- Facebook operates Facebook.com with Sponsored Stories that display a user’s name, photo, and endorsement of a brand when the user engages with Facebook or affiliated sites.
- Plaintiffs allege Facebook misappropriated their names, photographs, and likenesses for paid advertisements without consent, via Sponsored Stories.
- Sponsored Stories can be generated when users Like, Post, Check-in, or interact with apps or games related to advertisers.
- Plaintiffs claim economic injury from non-consensual endorsements that are publicly valued by advertisers and Facebook profits from the added value of Sponsored Stories.
- Plaintiffs seek declaratory and injunctive relief, damages, and restitution, on behalf of themselves and a class of Facebook members affected by Sponsored Stories.
- Defendant moved to dismiss under Rule 12(b)(1) and 12(b)(6), asserting lack of standing, CDA § 230 immunity, and failure to state claims under § 3344, UCL, and unjust enrichment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue | Plaintiffs allege injury-in-fact from § 3344 violation and economic harm. | Plaintiffs lack Article III standing due to no concrete injury from nonconsensual endorsements. | Standing pleaded sufficiently; 12(b)(1) denied. |
| CDA § 230 immunity | Facebook is a content provider for created Sponsored Stories and not shielded by immunity. | Facebook is an interactive service provider and immunized for user content. | CDA immunity rejected; § 230 does not bar claims at this stage. |
| Misappropriation under § 3344 | Facebook knowingly used plaintiffs’ names/likenesses for endorsements without consent; not newsworthy. | Newsworthy exception and consent theories foreclose § 3344 claim. | § 3344 claim survives; newsworthiness not dispositive; consent issue remains fact-bound. |
| Unfair Competition Law (UCL) standing and claims | Plaintiffs have injury-in-fact and loss of money or property via unpaid endorsements; UCL applicable. | No standing and no viable unlawful/unfair/fraudulent conduct under UCL. | UCL standing and claims preserved; unlawful and unfair and fraudulent theories viable. |
| Unjust enrichment | Facebook has been unjustly enriched by using endorsements without compensation. | Unjust enrichment is not an independent claim under California law. | Unjust enrichment claim dismissed with prejudice. |
Key Cases Cited
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992) (standing requires injury-in-fact, causation, redressability)
- Maya v. Centex Corp., 658 F.3d 1060 (9th Cir. 2011) (standing precedes merits; injury-in-fact separate from merits)
- Downing v. Abercrombie & Fitch, 265 F.3d 994 (9th Cir. 2001) (statutory right of publicity protects non-celebrities)
- Cohen v. Facebook, Inc. (Cohen I), 798 F. Supp. 2d 1090 (N.D. Cal. 2011) (dismissal of § 3344 claim in friend notification case; consent/consumer value issues)
- Carafano v. Metrosplash.com, Inc., 339 F.3d 1119 (9th Cir. 2003) (CDA immunity and information content provider framework)
- Roommates.com, LLC, 521 F.3d 1157 (9th Cir. 2008) (content provider concept under § 230; editorial function limits)
- Batzel v. Smith, 333 F.3d 1018 (9th Cir. 2003) (content provider analysis under § 230)
- KNB Enterprises v. Matthews, 78 Cal.App.4th 362 (Cal. App. 2000) (non-celebrity right of publicity recognizes commercial value)