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559 F.Supp.3d 1318
S.D. Fla.
2021
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Background:

  • Plaintiff sued Costco under the Florida Security of Communications Act (FSCA), alleging Costco’s website used session-replay software to record mouse movements, clicks, keystrokes, search terms, and pages viewed.
  • Plaintiff asserted these recordings intercepted the "contents" of electronic communications, giving rise to an FSCA claim.
  • Costco moved to dismiss under Rule 12(b)(6); the court reviewed briefing and prior similar cases around session-replay technology.
  • The court construed FSCA terms ("intercept," "contents") according to plain meaning and federal analogues, focusing on whether the recorded data conveyed the "substance, purport, or meaning" of communications.
  • Court found the recorded website interactions akin to record/routing/tracking information (like security-camera footage or dialing/routing data) excluded or outside the FSCA’s definition of contents, and therefore held there was no interception.
  • The FAC was dismissed with prejudice because Plaintiff failed to plausibly allege an essential element (contents); the court declined to reach alternative defenses (consent, pleading defects).

Issues:

Issue Plaintiff's Argument Defendant's Argument Held
Whether session-replay recordings constitute "contents" under the FSCA Session-replay captured Plaintiffs' communications (mouse clicks, keystrokes, pages viewed) and thus intercepted contents Recordings are non-content record/routing/tracking information and do not convey the substance of any communication Recordings lacked "substance," so not "contents," thus no interception under FSCA
Whether webpages viewed and "commands" to the server are substantive communications Pages viewed and commands are communications conveying user intent/substance Those are like addresses, routing, or signaling information and not contents Webpage views/commands are non-contents (routing/addressing analogies apply)
Whether content can be resolved on a 12(b)(6) motion or is premature until discovery Content determination is factual and premature; focus is whether contents were intercepted, not what they were Plaintiff must plausibly allege the nature of the information intercepted; dismissal appropriate if complaint fails to plead contents Court: Plaintiff must allege what was intercepted; failure to plausibly plead contents justifies dismissal at pleading stage
Whether dismissal should be with prejudice / leave to amend Plaintiff implicitly sought to proceed (no viable amendment argued) Amendment would be futile because contents cannot be plausibly alleged from these facts Dismissal with prejudice; leave to amend denied as futile

Key Cases Cited

  • Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading standard: courts need well-pleaded, plausible factual allegations)
  • Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility pleading framework)
  • Hunt v. Aimco Properties, L.P., 814 F.3d 1213 (11th Cir. 2016) (accept well-pleaded facts on motion to dismiss)
  • Edison v. Douberly, 604 F.3d 1307 (11th Cir. 2010) (statutory interpretation follows plain meaning and context)
  • In re Zynga Priv. Litig., 750 F.3d 1098 (9th Cir. 2014) (distinguishing record information from the "contents" of communications)
  • Minotty v. Baudo, 42 So.3d 824 (Fla. 4th DCA 2010) (silent surveillance video did not convey the "substance" of communication under FSCA)
  • In re Nickelodeon Consumer Priv. Litig., 827 F.3d 262 (3d Cir. 2016) (URLs and similar data may be non-contents; analogies to dialing/routing information)
  • United States v. Forrester, 512 F.3d 500 (9th Cir. 2008) (routingsignaling and voluntarily provided instructions to servers are non-contents)
Read the full case

Case Details

Case Name: Goldstein v. Costco Wholesale Corporation
Court Name: District Court, S.D. Florida
Date Published: Sep 9, 2021
Citations: 559 F.Supp.3d 1318; 9:21-cv-80601
Docket Number: 9:21-cv-80601
Court Abbreviation: S.D. Fla.
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    Goldstein v. Costco Wholesale Corporation, 559 F.Supp.3d 1318