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78 F. Supp. 3d 1125
N.D. Cal.
2015
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Background

  • Plaintiff Miguel Garcia used Zimride (a ridesharing platform formerly owned by Lyft, acquired by Enterprise) and alleges each use caused Zimride to transmit his personal information to Mixpanel, a third‑party analytics firm.
  • Zimride’s signup flow required Facebook login and displayed a notice of the Facebook data Zimride would receive; hyperlinks to Zimride’s Terms of Service (TOS) and Privacy Policy were on the login screen next to an “Okay” button.
  • Plaintiff alleges the transmitted data included gender, age, zip code, metro region, travel plans, Facebook profile link, and a unique identifier, and that disclosure to Mixpanel violated Cal. Penal Code § 637.6 (CIPA § 637.6) because it occurred without his prior written consent.
  • Defendants moved to dismiss under Rule 12(b)(6), arguing (1) they are not proper defendants under § 637.6, (2) the complaint fails to allege prohibited disclosure/use, and (3) Plaintiff did not adequately plead lack of consent.
  • The court accepted judicial notice of Zimride’s TOS and Privacy Policy, found the pleaded facts insufficient to show non‑consensual disclosure for a purpose other than establishing/implementing a rideshare program, and concluded Plaintiff failed to adequately allege lack of prior written consent.
  • The FAC was dismissed with leave to amend; Plaintiff given 21 days to file an amended complaint.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether defendants are "persons" subject to § 637.6 Zimride/its employees acquired and disclosed his data; vicarious liability applies § 637.6 targets persons who assist private entities; defendants are the private entities, not assistants Court: FAC did not plead respondeat superior; construing statute to treat entities as assisting themselves would render language superfluous; defendants not shown to be improper on that basis but other arguments addressed
Whether disclosed data qualifies as "personal information" and was used/disclosed for a non‑rideshare purpose The categories alleged (age, zip, travel plans, FB link, identifier) are personal info and could be misused Plaintiff did not allege Mixpanel used the data for any purpose other than rideshare implementation Court: Alleged fields qualify as "personal information," but plaintiff failed to allege Mixpanel (or defendants) used/disclosed it for a non‑permitted purpose
Whether plaintiff adequately pleaded lack of "prior written consent" required by § 637.6 Plaintiff alleges he was not informed of and did not consent to transmission to Mixpanel Zimride’s Privacy Policy/TOS disclose sharing with agents/service providers and state users represent they read and agree; these contradict plaintiff’s bare denial of consent Court: Lack of prior written consent is an element that must be pleaded; the Privacy Policy/TOS (properly considered) undermine plaintiff’s allegation, so more factual detail is required
Whether the complaint survives Rule 12(b)(6) Complaint states a plausible claim based on statutory violation Complaint fails to plead essential elements (non‑permitted use, lack of consent) and relies on documents that negate allegations Court: Dismiss for failure to state a claim, with leave to amend

Key Cases Cited

  • Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading must state a plausible claim; court need not accept threadbare legal conclusions)
  • Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (complaint must plead enough facts to make claim plausible)
  • Navarro v. Block, 250 F.3d 729 (9th Cir. 2001) (Rule 12(b)(6) tests legal sufficiency of claims)
  • Nguyen v. Barnes & Noble Inc., 763 F.3d 1171 (9th Cir. 2014) (distinguishing browsewrap and clickwrap and when browsewrap can bind users)
  • Knievel v. ESPN, 393 F.3d 1068 (9th Cir. 2005) (on incorporation by reference at motion to dismiss)
  • In re Gilead Sciences Securities Litigation, 636 F.3d 1049 (9th Cir. 2011) (court need not accept allegations contradicted by documents properly subject to judicial notice)
Read the full case

Case Details

Case Name: Garcia v. Enterprise Holdings, Inc.
Court Name: District Court, N.D. California
Date Published: Jan 23, 2015
Citations: 78 F. Supp. 3d 1125; 2015 WL 351367; 2015 U.S. Dist. LEXIS 8799; Case No: C 14-00596 SBA
Docket Number: Case No: C 14-00596 SBA
Court Abbreviation: N.D. Cal.
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    Garcia v. Enterprise Holdings, Inc., 78 F. Supp. 3d 1125