G.G. v. Salesforce.com, Inc.G.G. v. Salesforce.com, Inc.
- Reporters:
- ,
- Before:
- Hamilton, Kirsch, Pryor
. In the Trafficking Victims Protec-
tion Reauthorization Act of 2003, Congress gave victims of sex
trafficking the power to bring civil actions to recover damages
from those who trafficked them.
benefits . . . from participation in a venture which that person
knew or should have known has engaged in an act” of sex
trafficking.
Plaintiffs G.G. and her mother Deanna Rose brought this
suit under
The district court dismissed the case on the pleadings, but
we conclude that plaintiffs’ complaint states a viable claim
under
I. Factual Background & Procedural History
Defendant Salesforce.com moved to dismiss this case on the pleadings, so we focus on the facts alleged in plaintiffs’ third amended, and operative, complaint. This opinion says harsh things about Salesforce contributing to sex trafficking, including trafficking of minors. Because of Salesforce’s tacti- cal choice to move to dismiss, we treat the allegations as true, though we do not vouch for their objective truth at this point in the case. See, e.g., Goldberg v. United States , 881 F.3d 529, 531 (7th Cir. 2018).
In 2016, when she was just thirteen years old, plaintiff G.G. ran away from home. She was picked up by a sex trafficker who advertised her on Backpage.com, an online marketplace, and repeatedly sold her into prostitution. G.G.’s mother searched for her daughter. Eventually, in the summer of 2016, her mother found photos of G.G.— in Backpage’s online ads for escorts. Backpage referred her mother to the National Cen- ter for Missing and Exploited Children but did not take down the advertisement.
The trafficking and advertising of G.G. on Backpage was not an isolated or even an unusual incide nt. When Backpage was created in 2004, it initially served as a marketplace for a variety of goods and services. By 2008, however, plaintiffs *4 4
allege, Backpage “had been publicly identified by law en- forcement, United States Attorneys General, and every stat e Governor as the biggest and most notorious sex trafficking and pimping website in the United States.”
Backpage’s sextrafficking was not limited to adults. Dur- ing the three years prior to G.G.’s trafficking, Backpage gen- erated more than 99% of its revenue from “adult advertise- ments,” including those offering minors for sex. In 2010, the National Association of Attorneys General publicly described Backpage as a “hub” of human trafficking, “especially the trafficking of minors.” In October 2016, just a few months af- ter her mother found the advertisement for G.G. on Backpage, California authorities arrested and charged the chief execu- tive officer of Backpage, Carl Ferrer, for pimping minors. In April 2018, Ferrer and Backpage entered into plea agreements with the United States Department of Justice in which they admitted that Backpage had operated as a site for the sale of sex since 2004. A few days later, in response to a felony charge and on the advice of counsel, Backpage confessed in a Texas court that it “knowingly receive[d] a benefit from participat- ing in a venture that involved the trafficking . . . of a child younger than 18 years of age, and . . . [had] caused [the child] to engage in or become the victim of conduct prohibited by” Texas Penal Code Section 43.05 (“Compelling Prostitution”). The United States Department of Justice seized Backpage and shut it down.
According to plaintiffs, Salesforce “entered into the first of several lucrative contracts with Backpage” back in 2013, years after the nature of Backpage’s business was widely known, and about three years before G.G. was trafficked. The con- tracts with Salesforce were designed to “facilitate and sup- port” Backpage’s “exponential growth” and to give Backpage “the ability to keep pace with increasing c ustomer demand and scale its platform into an international sex trafficking hub.”
Salesforce did not merely sell Backpage an off -the-shelf software package. It instead sold Backpage software designed specifically for Backpage and provided affirmative, “pe rson- alized support.” With those products and support, Salesforce helped Backpage operate its business, manage relationships with existing customers, market itself to new customers, and improve profitability. “Salesforce sold Backpage targeted so- lutions add ressed to the needs of Backpage’s business” and provided “active, ongoing support” that was “tailored” to Backpage’s needs.
Toward that end, at least five times between November 2013 and April 2017, Salesforce consulted with Backpage, in- cluding its CEO, to learn about the business and “to assess its operational needs.” With Salesforce’s help in the form of new software, marketing technology, and personalized opera- tional support, Backpage was able to “collect detailed, in - depth customer data and use the data to streamline commu- nications and overall business practices.” When Backpage faced imminent seizure by the United States government and wanted to “establish and maintain a duplicate copy of the Backpage operations system and platform” so that it could “move and operate its business overseas,” Salesforce *6 6
“facilitated this system reorganization and provided the tech- nical infrastructure” to do so.
In short, plaintiffs allege, the business relationship be- tween Backpage and Salesforce was successful. It enable d Backpage “to scale its operations and increase the trafficking conducted” through its site. With Salesforce’s help, Backpage grew “to become the dominant force in online sex trafficking.” Backpage experienced “unprecedented growth” in both its business and profits and was transformed from a “small . . . company with a handful of employees to an international powerhouse with over 250 employees spanning three conti- nents.” From the beginning of 2008 through the end of 2010, Backpage’s gross revenues totaled $46 million. In 2012 alone, Backpage’s gross revenue was $71 million. And from January 2013 through May 2015, Backpage’s gross revenue climbed to approximately $346 million, nearly $340 million of which was generated from adult advertising. As Backpage’s bus iness expanded and its profits grew, “the scope of work covered by the Salesforce contracts,” as well as Salesforce’s profits from those contracts, also grew. Salesforce stopped doing business with Backpage only when it was shut down by the federal government in April 2018.
Two years later, in April 2020, G.G. and her mother filed
this lawsuit in federal court seeking to hold Salesforce liable
under
After plaintiffs voluntarily dismissed defendant Backpage
in February 2022, the district court granted Salesforce’s mo-
tion to dismiss.
G.G. v. Salesforce.com, Inc.
, 603 F. Supp. 3d 626,
630 (N.D. Ill. 2022). The district court reasoned first that plain-
tiffs had pled themselves out of court by alleging facts that
showed Salesforce was entitled to the protection of
II. Analysis
A. Legal Standard
We review de novo both a district court’s legal conclusions
and its dismissal of a complaint for failure to state a claim un-
der Rule 12(b)(6).
Wirth v. RLJ Dental, S.C.
, 59 F.4th 270, 272
(7th Cir. 2023) (legal conclusions);
Proft v. Raoul
, 944 F.3d 686,
690 (7th Cir. 2019) (dismissal). We treat the complaint’s factual
allegations as true and draw factual inferences in the plain-
tiffs’ favor.
Boogaard v. Nat’l Hockey League
, 891 F.3d 289, 290 –
91 (7th Cir. 2018). A complaint needs to present only “a short
and plain statement” of the basis for a claim.
To be plausible rather than merely conceivable means that the complaint’s “factual content . . . allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Firestone Financial Corp. v. Meyer , 796 F.3d 822, 826 (7th Cir. 2015), quoting Ashcroft v. Iqbal , 556 U.S. 662, 678 (2009). The factual allegations must present “more than a sheer possibility” that the defendant’s conduct is un- lawful, Iqbal , 556 U.S. at 678, but a complaint should survive a motion to dismiss “even if it strikes a savvy judge that actual proof of those facts is improbable, and that a recovery is very remote and unlikely.” Alam v. Miller Brewing Co. , 709 F.3d 662, 666 (7th Cir. 2013), quoting Twombly , 550 U.S. at 556.
We explain next in Part B how plaintiffs have alleged a vi-
able claim under
B.
Plausibly Alleging a Claim Under
(a) Whoever knowingly — (1) in or affecting in- terstate or foreign commerce . . . recruits, entices, harbors, transports, provides, obtains, adver- tises, maintains, patronizes, or solicits by any m eans a person; or (2) benefits, financially or by receiving anything of value, from participation in a venture which has engaged in an act de- scribed in violation of paragraph (1), knowing, or, except where the act constituting the viola- tion of paragraph (1) is advertising, in reckless disregard of the fact, that means of force, threats of force, fraud, coercion described in subsection (e)(2), or any combination of such means will be used to cause the person to engage in a commer- cial sex act, or that the person has not attained the age of 18 years and will be caused to engage in a commercial sex act, shall be punished as provided in subsection (b).
*10 10
To prove a criminal violation of
Plaintiffs have plausibly alleged that G.G. was a victim of
violations of
Plaintiffs also allege that Backpage violated
According to these allegations, then, G.G. was a victim of
multiple violations of both
*12 12
Under a theory of participant liability, a plaintiff like G.G.
who is a victim of a criminal violation must allege and ulti-
mately prove that (1) a venture has engaged in an act in vio-
lation of
1.
A Venture Which Has Engaged in an Act in Violation of
The first element is the existence of “a venture which . . .
has engaged in an act in violation” of
[5] We have reorganized the most common summaries of these ele-
ments to follow a logical sequence rather than the sequence of the phrases
in
[6] In addition to these violations with respect to G.G., plaintiffs have alleged that Backpage’s business was substantially devoted to criminal sex trafficking. During the years when Backpage and Salesforce were working together, Backpage had engaged and was continuing to engage in
Salesforce argues that plaintiffs have failed to allege that it
participated in a venture that has violated
Plaintiffs have sufficiently alleged the existence of a ven-
ture that violated
While
14
import
In short, we agree with the district court that the relevant
“venture” under
Plaintiffs have alleged such a venture here. “By 2013,” plaintiffs allege, “Backpage found itself in need of a partner who could facilitate and support [Backpage’s] exponential growth.” The “venture” was Backpage’s business itself, in- cluding the “growth,” “expansion,” and profitability of that business.
2.
Salesforce’s Constructive Knowledge That the Venture
Had Engaged in an Act in Violation of
*16 16
Plaintiffs have plausibly alleged that Salesforce at least
should have known that Backpage had repeatedly violated
According to the allegations in the complaint, by 2008 — five years before Salesforce entered into its first contract with Backpage — “law enforcement, United States Attorneys Gen- eral, and every state Governor” had “publicly identified” Backpage “as the biggest and most notorious sex trafficking and pimping website in the United States.” In 2010, 21 state attorneys general called on Backpage “to shut down its adult services section.” After a First Circuit decision in March 2016, Jane Doe No. 1 v. Backpage.com, LLC , 817 F.3d 12 (1st Cir. 2016), afforded Backpage protection under Sectio n 230 of the Com- munications Decency Act, the Senate investigated Backpage. H.R. Rep. No. 115- 572, pt. 1, at 3 – 5 (Feb. 20, 2018). Nationwide news coverage identified Backpage as “the leading platform in order for participant liability to attach. See Red Roof Inns , 21 F.4th at 725; Lundstrom , 2021 WL 5579117, at *5; Doe v. Mindgeek USA Inc. , 558 F. Supp. 3d 828, 839 (C.D. Cal. 2021); Twitter, Inc. , 555 F. Supp. 3d at 925; J.L. , 521 F. Supp. 3d at 1062, 1076; H.G. v. Inter Continental Hotels Corp. , 489 F. Supp. 3d 697, 704 – 05 (E.D. Mich. 2020); M.L. v. Craigslist Inc. , No. C19 -6153 BHS- TLF, 2020 WL 5494903, at *5 – 6 (W.D. Wash. Sept. 11, 2020); Hilton World- wide Holdings Inc. , 484 F. Supp. 3d at 937 – 39; J.B. v. G6 Hospitality, LLC , No. 19 -cv- 07848 -HS G, 2020 WL 4901196, at *8 – 9 (N.D. Cal. Aug. 20, 2020); S.Y. , 476 F. Supp. 3d at 1256; B.M. v. Wyndham Hotels & Resorts, Inc. , No. 20-cv- 00656- BLF, 2020 WL 4368214, at *5 – 6 (N.D. Cal. July 30, 2020); S.J. , 473 F. Supp. 3d at 152– 54; A.C. , 2020 WL 3256261, a t *4 – 5; Marriott Int’l, Inc. , 455 F. Supp. 3d at 189; Doe 3 v. Red Roof Inns, Inc. , No. 1:19 -cv- 03843 -WMR, 2020 WL 1872333, at *3 (N.D. Ga. April 13, 2020); Doe S.W. , 2020 WL 1244192, at *5 – 6; H.H. , 2019 WL 6682152, at *3; M.A. , 425 F. Supp. 3d at – 68. for the facilitation of sex trafficking and other forms o f human degradation.” Salesforce’s hometown newspaper, the San Francisco Chronicle, published no fewer than 400 prominent news articles about Backpage between 2009 and 2017, includ- ing several in 2012 linking Backpage to child sex trafficking. A 2013 articl e revealed that the FBI was monitoring Backpage after rescuing more than 100 children from forced prostitu- tion. These facts about its customer should have been known to Salesforce.
Apart from this public information, plaintiffs are entitled
to a reasonable inference at this stage of the case that, based
on Salesforce’s relationship with Backpage, Salesforce either
“knew or should have known” that at least a substantial part
of Backpage’s business was illegal sextrafficking, including
trafficking of children.
Salesforce disagrees, arguing that, under “the plain text” of
We are not persuaded that “
a
venture” and “
an
act” mean
“
the
victim.” First, as explained above, “a venture” need not
be primarily a
sex- trafficking
venture, so it need not be, as
Salesforce suggests, “a
particular
” sex trafficking venture.
Even if it were, it would take an additional inferential leap to
conclude that
As for “an act,” Salesforce’s reading is contrary to the stat-
utory text and overlooks differences between the two sec-
tions. If Congress had meant in
The cases Salesforce cites to support its argument —all
hotel sex - trafficking cases — simply do not support requiring
knowledge of the specific victim. In
S.J. v. Choice Hotels
International, Inc.
, 473 F. Supp. 3d 147 (E.D.N.Y. 2020), for
example, the court found meaning in “a venture” and “an act”
as used in
not go so far as to require knowledge of a particular victim. Id. [10]
Other cases on which Salesforce relies are not persuasive here because they involved the trafficking of only one victim. In such cases, knowledge of the specific victim goes hand -in- glove with knowledge of the “venture.” E.g., Lundstrom , 2021 WL 5579117, at *1 – 2, *6 – 8; B.M. , 2020 WL 4368214, at *5 –6. Be- cause the ventures and the victims were one and the same, these cases do not stand for the proposition that a civil de- fendant who participated in a venture engaged in sex traffick- ing on a substantial scale must have had constructive knowledge of the specific victim.
If such sp ecificity were required,
In short, we agree with the majority of courts that have
addressed
To state a claim under
3. Participation The next question is whether plaintiffs have sufficiently al- leged that Salesforce, with that constructive knowledge, par- ticipated in Backpage’s venture. They have.
Congress has not defined “participation” under
Mindful of that ceiling, we agree with the district court
that “participation” does not require “direct participation in
the sex trafficking.”
G.G.
, 603 F. Supp. 3d at 644, quoting
M.A.
, 425 F. Supp. 3d at 970. While direct involvement in sex
[15] As one district court put it, a participant defendant need not have committed “some ‘overt act’ that furthers the sex trafficking aspect of the venture” or have “associated” with the sex trafficker “for the purpose of trafficking itself (e.g., transporting victims, providing hotel rooms) would satisfy Section 1595’s “participation” element, direct involvement goes beyond what the statutory text re- quires. Since the “venture” in question need not be primarily a sex - trafficking venture and the civil defendant itself need not have committed a criminal violation of Section 1591, “par- ticipation in” that venture need not i nvolve direct participa- tion in the sex trafficking itself. It is the venture that must vi- olate Section 1591, and not the participant.
We read “participation” in accord with our “ordinary un- derstanding of culpable assistance to a wrongdoer,” which re- quires only “a desire to promote the wrongful venture’s suc- cess,” Doe v. GTE Corp. , 347 F.3d 655, 659 (7th Cir. 2003), though Section 1595 does not require actual knowledge of criminal wrongdoing. We agree with the district court that a plaintiff may sufficiently allege such “culpable assistance” by furthering the sex trafficking.” M.A. , 425 F. Supp. 3d at 968 – 69 (rejecting those requirements under Section 1595 because Sixth Circuit had developed them in criminal context under Section 1591), quoting United States v. Afyare , 632 F. App’x 272, 286 (6th Cir. 2016). The vast majority of district courts agree. See Lundstrom , 2021 WL 5579117, at *5 –6 (noting that, to read such requirements into “participation in a venture” would draw civil liability under Section 1595 dangerously close to criminal liability under the Racketeer Influenced and Corrupt Organizations (RICO) Act); Twitter, Inc. , 555 F. Supp. 3d at 916 – 18; J.L. , 521 F. Supp. 3d at 1062; Hilton Worldwide Holdings Inc. , 484 F. Supp. 3d at 937; S.Y. , 476 F. Supp. 3d at 1256; S.J. , 473 F. Supp. 3d at 152 – 53; A.C. , 2020 WL 3256261, at *6 – 7; J.C. , 2020 WL 303 5794, at *1 n.1; Marriott Int’l, Inc. , 455 F. Supp. 3d at 185 – 88; Doe S.W. , 2020 WL 1244192, at *6 – 7; H.H. , 2019 WL 6682152, at *4. But see Geiss , 383 F. Supp. 3d at 168 – 70 (“The participation giving rise to the benefit must be participation in a sex- trafficking venture , not participation in other activities engaged in by the sex traffickers that do not further the sex trafficking aspect of their venture.”), citing Afyare , 632 F. App’x at 286. 25 showing “a continuous business relationship” between the participant and the trafficker. G.G. , 603 F. Supp. 3d at 644, quoting J.B. , 2020 WL 4901196, at *9. Where the participant provides assistance, support, or facil itation to the trafficker through such a “continuous business relationship,” a court or jury may infer that the participant and trafficker have a “tacit agreement” that is sufficient for “participation” under Section 1595. See M.A. , 425 F. Supp. 3d at 970 – 71; accord, Ricchio v. McLean , 853 F.3d 553, 555 (1st Cir. 2017) (Souter, J.) (conclud- ing that “participation” can be inferred, in part, where traf- ficker and civil defendants — the owners of a hotel the traf- ficker used for his venture —had prior similar deali ngs). [16] To survive a motion to dismiss, all that is necessary is for a plain- tiff to allege such a “continuous business relationship,” which gives rise to an inference, drawn in the plaintiff’s favor, that the civil defendant facilitated the venture’s succe ss. [17]
Plaintiffs have plausibly alleged here such a “continuous business relationship.” According to the allegations, *26 26
Backpage was trying “to keep pace with increasing customer demand and scale its platform,” so it sought out “a partner who could facilitate and support the company’s exponential growth.” According to plaintiffs, Backpage found that partner in Salesforce, which “entered into the first of several lucrative contracts with Backpage” in 2013. Through those contracts, Salesforce provided Backpage with “targeted solutions addressed to the needs of Backpage’s business,” repeatedly assessed Backpage’s “operational needs,” and provided “active, ongoing support” that was “tailored” to those needs. [18]
With that support, Backpage was able to build relatio n- ships with more street level traffickers, to increase the “scale [of] its operations,” and to “increase the trafficking con- ducted” through its site. During the course of their business relationship, which continued until Backpage was seized by the Departm ent of Justice, Backpage was transformed from a “small . . . company with a handful of employees to an inter- national powerhouse with over 250 employees spanning three continents.” In the first three years, Backpage’s gross revenues grew by a factor of five. And as Backpage expanded, so did the scope of Salesforce’s support and its income from the contracts. In short, Salesforce facilitated the growth of Backpage’s business, a business that was almost exclusively a sex - trafficking business and that had engaged i n multiple acts in violation of Section 1591, nay, whose business model was built upon systematic and widespread violations of Section 1591.
Salesforce argues that “participation” requires more, that
plaintiffs have alleged only that Salesforce was “somehow
connected” to Backpage’s sex trafficking enterprise. R. 26,
Appellee’s Br. at 53. The argument is not persuasive. First,
Salesforce argues that plaintiffs have failed to “connect
Salesforce or its software” to “G.G.’s trafficking or her traf-
ficker.” Put differently, Salesforce tries to narrow the focus of
the “participation” inquiry to Backpage’s advertisements of
G.G. herself, asserting that Salesforce had no specific involve-
ment with those advertisements. That focus is simply too nar-
row. As a matter of law, such a direct connection between
Salesforce and G.G.’s trafficking is not necessary. Under Sec-
tion 1595, we focus on participation in a “venture,” not partic-
ipation in “an act in violation” of Section 1591.
By Salesforce’s logic, there would be no “participation” where a company helped a drug kingpin expand his drug - trafficking operations writ large because the company might not have been involved in pushing drugs in a particular market. Or, for that matter, where a company helped a terror- ist organization grow its terrorist network because the com- pany could not be connected directly to a specific terrorist act. The statutory text does not support such narrowing interpre- tations. Contrary to Salesforce’s arguments, “participation” does not require getting your hands dirty. It is enough that plaintiffs allege that Salesforce facilitated the success of Back- page’s sex trafficking venture as a who le .
Furthermore, Salesforce’s argument fails to engage with plaintiffs’ actual allegations. Salesforce seems to assume that G.G. had only one trafficker —the street- level trafficker who physically forced her into prostitution. But that person was not G.G.’s sole sex trafficker under Section 1591. According to the allegations in plaintiffs’ complaint, Backpage was also a sex trafficker. Contrary to Salesforce’s assumptions, therefore, Salesforce was not one step removed from G.G.’s traffickers. It was in a direct, prolonged, and supportive contractual rela- tionship with one of those sex traffickers — Backpage.
Because of these differences, Salesforce’s reliance on the Eleventh Circuit’s decision in Doe #1 v. Red Roof Inns, Inc. is misplaced. In Red Roof Inns , t he Eleventh Circuit defined “participation in a venture” as taking “part in a common undertaking or enterprise involving risk and potential profit.” 21 F.4th at 725. The court then analyzed claims against hotel franchisors to see if they had taken “part in the common undertaking of sex trafficking with hotel employees, management, owners, and sex traffickers.” Id. at 726. The plaintiffs had alleged that “the franchisors ‘owned, managed, supervised, operated, oversaw, controlled the operation of, and/or were inextricably connected to the renting of rooms’ at the hotels.” Id. They also alleged that the franchisors had “investigated the individual hotels, [taken] remedial action when revenue was down, read online reviews mentioning prostitution and crime occurr ing generally at the hotels, and controlled the training of managers and employees who were allegedly involved in facilitating sex trafficking at the hotels.” Id. at 727.
On these allegations, the Eleventh Circuit concluded that plaintiffs had failed to allege that the franchisors had partici- pated in a “common undertaking or enterprise with the Does’ sex traffickers or others at the hotel who violated” Section 1591. Id . Key to the court’s reasoning was how the plaintiffs had chosen to define the alleged ve nture— specifically as a “sex trafficking” venture. The court wrote that, if the plaintiffs had alleged “that the franchisors participated in commercial ventures to operate hotels and that those hotel ventures vio- lated” Section 1591, the result might have been different. Id. (emphasis added). The court rejected this framing, however, because the plaintiffs had not alleged it in their complaint or presented it to the district court.
But here, plaintiffs have framed the venture in just those terms. They allege that Salesforce “participated in commercial ventures” with Backpage to grow its business and that Back- page “violated the statute.” See Red Roof Inns , 21 F.4th at 727 . Not only that, but the relationships in play here are distinct from those in play in Red Roof Inns . The franchisor defendants in that case were one step removed from the sex traffickers (i.e., street - level trafficker – > hotel – > hotel franchisor). Here Salesforce had a direct and long -term contractual relationship with sex trafficker Backpage. So even if we applied the Red Roof Inns definition of “participation in a venture” to the alle- gations here, plaintiffs would have plausibly alleged that *30 30
element. See id. at 729 (Jordan, J., concurring) (“[S]imilar claims against . . . [the] franchisees . . . would withstand a Rule 12(b)(6) motion to dismiss.”). That is, Salesforce “took part in” the expansion and success of Backpage — “a common under- taking or enterprise involving risk and potential profit.” See id. at 725. [19]
In a similar vein, Salesforce argues that it merely provided Backpage with its software and Backpage did the rest. This argument also invites us to disregard plaintiffs’ actual allega- tions. We assume that “participation” requires more than pro viding off -the- shelf software (or other common products or services from furniture to telephones or pizza deliveries). But the allegations here do not paint Salesforce as an arms - length seller of off -the- shelf products. Plaintiffs allege that Salesforce “did not merely sell [Backpage] an off -the-shelf product that enabled Backpage to grow without the input of Salesforce.” “Rather, Salesforce sold Backpage targeted solu- tions addressed to the needs of Backpage’s business,” repeat- edly assessed Backpage’s “operational needs,” and provided “active, ongoing support” that was “tailored” to those needs.
These allegations defeat Salesforce’s reliance on Doe v. GTE Corp. , 347 F.3d 655 (7th Cir. 2003), and Backpage.com, LLC v. Dart , 807 F.3d 229 (7th Cir. 2015). In GTE Corp. , plaintiffs had been secretly recorded on video while they were un- dressed in “locker rooms, bathrooms, and showers.” 347 F.3d at 656. Plaintiffs sued the company that had provided web - hosting services for websites that had offered the videos for sale. Id. at 656– 57. We affirmed dismissal on the pleadings, concluding that the alleged activities of the web - hosting ser- vices did not amount to “culpable assistance” to those web- sites or the sellers of the videos because a “web host, like a delivery service or phone company, is an intermediary and normally is indifferent to the content of what it transmits.” Id. at 659.
In Backpage.com, LLC , the Sheriff of Cook County had pres- sured credit card companies to stop processing transactions on Backpage. 807 F.3d at 230. Ordering an injunction against the Sheriff for violating Backpage’s First Amendment rights, we concluded that the credit card companies were only “re- mote intermediaries,” indifferent to any of Backpage’s alleg- edly illegal activities. Id. at 233– 34, 239.
The allegations here are different. According to plaintiffs, Salesforce was not a remote intermediary “indifferent” to Backpage’s enterprise. If Backpage had merely purchased an off -the- shelf product from Salesforce, as any company might purchase bookkeeping or word - processing software, then GTE and Backpage.com might help Salesforce. But plaintiffs have described a relationship between Salesforce and Back- page much closer than that between a web hosting service or a credit- card payment processor and a website. Salesforce and Backpage entered multiple contracts over a number of years whereby Salesforce provided Backpage with software de- signed specifically for Backpage and affirmative, “personal- ized support.” Salesforce’s support of Backpage’s business was not generic, but “targeted” to Backpage’s specific needs. Salesforce repeatedly consulted with Backpage, including its CEO, “to assess its operational needs” and provided “active, ongoing support” that was “tailored” to Backpage’s evolving *32 32
business. Thi s was not a sale by a “remote intermediary” but the active participation of a contractual partner.
Salesforce insists that our interpretation of “participation”
threatens to sweep up “a convenience store that sells dispos-
able cell phones or a clothing store that sells an outfit used as
a disguise.” These are precisely the kind of routine sales of
off -the- shelf products or standard services that we do not
view as amounting to “participation.” Salesforce supports its
policy concerns with
Twitter, Inc. v. Taamneh
, 143 S. Ct. 1206
(2023), where the Supreme Court interpreted the civil liability
provisions of the Justice Against Sponsors of Terrorism Act,
The statute in
Twitter
, for example, authorizes civil liability
against “any person who aids and abets, by knowingly
providing substantial assistance, or who conspires with the
person who committed such an act of international terror-
ism.”
By comparison, Congress drafted
Salesforce also cites
United States v. Hansen
, 143 S. Ct. 193 2
(2023), to support its argument that “participation in a ven-
ture” under
That holding might aid our reading of the criminal provi-
sions of Section 1591, but it does not help with civil liability
under
In sum, plaintiffs have not, as Salesforce contends, “con-
flated” Salesforce’s conduct with Backpage’s. Plaintiffs are
seeking, as
4.
Knowing Benefit
According to the language of
Salesforce thinks that the statutory text requires more. Re- lying on one district court decision — Geiss v. Weinstein Co. Holdings LLC , 383 F. Supp. 3d 156, 168 – 70 (S.D.N.Y. 2019) — Salesforce argues that the “knowingly benefits” element re- quires (1) “‘a causal relationship’ between the defendant’s ‘af- firmative conduct furthering the sex - trafficking venture and receipt of a benefit,’” and (2) “that the def endant received the benefits with ‘knowledge of that causal relationship.”
In
Geiss
, three women brought a civil action against film
producer Harvey Weinstein, his companies, and the compa-
nies’ officers and directors alleging that Weinstein had sex-
ually harassed and assaulted them and that “the other de-
fendants knew of, facilitated, and covered up his miscon-
duct.”
Id.
at 161– 62, 165, 167. The court found that the defend-
ants “undoubtedly benefited” from Weinstein’s continued
employment and that some of the revenue generated by
Weinstein’s “movies and influence . . . flowed to” the defend-
ants.
Id.
at 169. But that was not enough. As the court saw it,
the “controlling question” was whether Weinstein “provided
any of those benefits” to the other defendants “
because of
[their] facilitation of [his] sexual misconduct.”
Id.
at 169 (em-
phasis in original). In short,
Geiss
read “knowingly benefits”
to require a
quid pro quo
between trafficker and participant.
But Section 1595 says nothing about
why
the sex trafficker
provi des any benefit to the participant -defendant. In fact, the
statute does not even require that the sex trafficker itself or
himself provide any benefit. Section 1595 uses the passive
voice: “Whoever knowingly benefits….”
The Geiss court and Salesforce’s reading thus find no footing in the statutory text.
Again, as the statutory text clearly dictates, where the de- fendant is simply aware that it is benefiting, that is enough. According to the allegations here, Salesforce and Backpage ent ered into multiple contracts over several years that called for close business advice and consulting. Salesforce’s aware- ness that it was benefiting from those contracts is enough to satisfy the “knowingly benefits” element.
In sum, plaintiffs have plausibly alleged a claim under
C.
Whether Defendant is Protected by
As we have said repeatedly,
“provider or user of an interactive computer service,” and
(2) the defendant is being “treated as the publisher or
speaker” of (3) “information provided by another information
content provider.”
A plaintiff “ordinarily need not anticipate and attempt to plead around affirmative defenses,” but dismissal may be ap- propriate if “the factual allegations in the complaint unambig- uously establish all the elements of the defense.” Hyson USA, Inc. v. Hyson 2U, Ltd. , 821 F.3d 935, 939 (7th Cir. 2016). The district court found that plaintiffs had pled themselves out of court with factual allegations that satisfied all three elements. First, the court found that plaintiffs’ allegations showed that Salesforce qualified as an “interactive computer service.” G.G. , 603 F. Supp. 3d at 634. [22] Because Salesforce—in the course of “managing . . . relationships” between “Backpage and its customers” — was required “to analyze . . . content pro- vided by Backpage about its customers,” the district court found that Salesforce was “an access software provider.” Id. at 635 (emphasis in original).
We need not resolve whether Salesforce qualifies as a
“provider . . . of an interactive computer service.” The allega-
tions do not support the second and third elements of
Here, plaintiffs’ allegations simply do not seek to treat Salesforce as a publisher or speaker. Plaintiffs’ claim does not depend on Salesforce having published or spoken anything. Rather, plaintiffs seek to hold Salesforce accountable for sup- porting Backpage, for expanding Backpage’s business, for providing Backpage with technology, for designing custom software for Backpage, for facilitating the trafficking of G.G., for helping Backpage with managing its customer relation- ships, streamlining its business practices, and improving its profitability, and for ena bling Backpage “to scale its operations *40 40
and increase the trafficking conducted on Backpage.” Dkt. 85,
¶¶ 1– 3, 33, 29 – 30, & 41. In other words, plaintiffs are seeking
to hold Salesforce “liable under [
We are not saying that “the name of the cause of action” — defamation versus participation and so on—determines whether a defendant can be treated as a publisher or speaker. See Barnes v. Yahoo!, Inc. , 570 F.3d 1096, 1101 – 02 (9th Cir. 2009). We agree with the Ninth Circuit that we must focus on “whether the duty that the plaintiff alleges the defendant vi- olated derives from the defendant’ s status or conduct as a ‘publisher or speaker.’” Id. at 1102.
In this case, plaintiffs allege that Salesforce had a duty not to benefit knowingly from participating in Backpage’s ven- ture while knowing or having reason to know that the venture was engaged in sex trafficking. That duty does not depend in any way on Salesforce’s supposed “status or conduct as a ‘publisher or speaker.’” See id.
To be sure, Backpage itself was a publisher.
[24]
But the fact
that publishing was involved somewhere in G.G.’s trafficking
does not mean that Salesforce can successfully use
But
Plaintiffs also have not alleged that Salesforce ever “pub-
lished” any
third - party
content. The only audience for the data
Salesforce put online was Backpage itself, and Backpage pro-
vided Salesforce with that data.
G.G.
, 603 F. Supp. 3d at 635.
It does not make sense to treat Salesforce as “publishing” to
Backpage itself content that came from Backpage. With re-
spect to any content that was provided by Backpage,
Salesforce fails
third element, which requires that the published content be
“provided by
another
information content provider.”
The judgment of the district court is REVERSED, and this case is REMANDED for proceedings consistent with this opinion. 43
K IRSCH ,
Circuit Judge
, dissenting. The majority and I agree
that Salesforce lacked constructive knowledge that G.G. had
been trafficked on Backpage.com in violation of
defendant can violate
To plead a
By holding that a defendant may be liable under
Without constructive knowledge of G.G.’s identity and the
trafficking offense committed against her (in other words, a
Notes
[1] See Judicial Confession and Stipulation and Certification of Discov- ery, Texas v. Backpage.com , No. 18FC 1653C (Tex. Dist. Ct. Apr. 9, 2018), available at https://digitalcommons.law.scu.edu/historical/1706/.
[2] The allegations in the complaint do not specify what portion of Back- page’s gross revenues were generated through the trafficking of minors, but at this stage of the litigation, we may infer in plaintiffs’ favor that the trafficking of minors constituted a significant source of revenue, particu- larly in light of the allegation that Backpage had been deemed a “hub” of “human trafficking, especially the trafficking of minors ” by the National As- sociation of Attorneys General.
[3] The referenced chapter is Chapter 77 of Title 18, which also includes
criminal prohibitions on peonage, slavery, forced labor, and other forms
of human trafficking, so
[4] Courts unanimously agree that a civil defendant under
[7] In declining to import
[8] Nearly every court agrees. See Lundstrom , 2021 WL 5579117, at *5 – 6; Doe v. Twitter, Inc. , 555 F. Supp. 3d 889, 916 – 18 (N.D. Cal. 2021); J.L. v. Best Western Int’l, Inc. , 521 F. Supp. 3d 1048, 1062 (D. Colo. 2021); A.B. v. Hilton Worldwide Holdings Inc. , 484 F. Supp. 3d 921, 937 (D. Or. 2020); S.Y. , 476 F. Supp. 3d at 1256; S.J. , 473 F. Supp. 3d at 152 – 53; A.C. , 2020 WL 3256261, at *6; Doe S.W. , 2020 WL 1244192, at *6; H.H. , 2019 WL 6682152, at *4; Jean- Charles , 937 F. Supp. 2d at 288. On the other side of this question, see Geiss v. Weinstein Co. Holdings LLC , 383 F. Supp. 3d 156, 168 – 70 (S.D.N.Y. 2019) ( concluding that the “participation giving rise to the benefit must be par- ticipation in a sex- trafficking venture , not participation in other activities en- gaged in by the sex traffickers that do not further the sex trafficking aspect of their venture”).
[9] This is a negligence standard, and all courts agree that a defendant under Section 1595 must have had at least constructive knowledge that the “venture” in question has engaged in an act in violation of Section 1591
[10] Likewise, in Doe 3 , another case cited by Salesforce, the court found that allegations “that customers [had] complained about prostitution” tak- ing place, generally, at the franchisors’ hotels was, on its own, insufficient to meet Section 1595’s constructive knowledge requirement for the fran- chisor itself, as distinct from individual franchisees . 2020 WL 1872333, at *1, *3 (granting motions to dismiss with leave to amend).
[11] Salesforce’s remaining cases also do not help it. In all of them, the civil defend ants did have constructive knowledge of the specific victim. See S.Y. , 476 F. Supp. 3d at 1257; Marriott Int’l, Inc. , 455 F. Supp. 3d at 181, 188, 192 – 94. The fact that constructive knowledge of the specific victim was shown and sufficient does not mean that the knowledge was also nec- essary.
[12] In Twitter, Inc. v. Taamneh , 143 S. Ct. 1206 (2023), the Supreme Court addressed secondary civil liability for acts of international terrorism under a statute that requires proof of criminal mens rea for aiding and abetting. Even under that standard, which is more demanding than Section 1595, Twitter recognized that a defendant might provide a criminal enterprise with aid “so intentional and systematic” that the defendant would be lia- ble without having known of the specific crime, let alone its foreseeable consequences, extending even to murder as a foreseeable consequence of a burglary. 143 S. Ct. at 1224, discussing Halberstam v. Welch , 705 F.2d 472 (D.C. Cir. 1983), which Congress had cited with approval in enacting the terrorism statute. As we discuss in more detail below, plaintiffs here have alleged that Salesforce gave aid to Backpage that can fairly be described as intentional and systematic, with at least constructive knowledge of Backpage’s sex trafficking of minors.
[13] See M.L. , 2020 WL 5494903, at *5 – 6 (explicitly rejecting the conten- tion that the civil defendant must have had constructive knowledge of the victim’s “ specific trafficking, rather than general, abstract knowledge of po- tential trafficking”); S.Y. , 476 F. Supp. 3d at 1257; A.C. , 2020 WL 3256261, at *4 – 5; Marriott Int’l, Inc. , 455 F. Supp. 3d at 181, 188, 192 – 94; H.H. , 2019 WL 6682152, at *3; Doe S.W. , 2020 WL 1244192, at *5 – 6; M.A. , 425 F. Supp. 3d at 965 – 68. But see Mindgeek USA Inc. , 558 F. Supp. 3d at 838 – 39; Twitter, Inc. , 555 F. Supp. 3d at 925; J.L. , 521 F. Supp. 3d at 1068, 1072 – 73, 1076 – 77.
[14] As with “venture,” Section 1591(e) limits definition of “participa- tion in a venture” expressly to Section 1591. In addition, “we must nor- mally seek to construe Congress’s work ‘so that effect is given to all pro- visions, so that no part will be inoperative or superfluous, void or insig- nificant.’” Ysleta Del Sur Pueblo v. Texas , 142 S. Ct. 1929, 1939 (2022), quot- ing Corley v. United States , 556 U.S. 303, 314 (2009). As the Eleventh Circuit has observed, if we incorporate Section 1591’s “knowingly” scienter into
[16] See also Doe v. Reddit, Inc. , No. SACV 21 00768 JVS (KESx), 20 21 WL 5860904, at *7 – 8 (C.D. Cal. Oct. 7, 2021); Mindgeek USA Inc. , 558 F. Supp. 3d at 837 – 38; Twitter, Inc. , 555 F. Supp. 3d at 917 – 18; J.B. , 2020 WL 4901196, at *8 – 9; A.C. , 2020 WL 3256261, at *6; Marriott Int’l, Inc. , 455 F. Supp. 3d at 186; Doe S.W. , 2020 WL 1244192, at *6; H.H. , 2019 WL 6682152, at *4.
[17] The district court wrote in this context that “Salesforce did not take part in the construction of the business itself.” G.G. , 603 F. Supp. 3d at 648. In context, we understand the court to have meant that if Salesforce had merely sold Backpage an off -the- shelf software package, it would not have participated in the trafficking venture. The general point may be correct, at least with respect to a one-time sale of an off-the- shelf product. As ex- pl ained below, however, plaintiffs have alleged that Salesforce was much more involved in helping Backpage grow its business with advice and consulting about how best to use Salesforce’s software.
[18] Salesforce asserts that plaintiffs’ “characterization” of the software and services it provided to Backpage “as ‘unique,’ targeted, or ‘personal- ized,’” is “conclusory.” The district court seemed to accept this argument in criticizing plaintiffs for not alleging more specific examples of Salesforce’s custom -tailore d services. 603 F. Supp. 3d at 648. We respect- fully disagree. Plaintiffs’ allegations along these lines are not conclusory, but factually and specifically descriptive. Conclusory allegations are those that parrot “legal conclusions,” merely reciting “the e lements of a cause of action,” while couching them as “‘factual allegation[s.]’” Iqbal , 556 U.S. at 678, quoting Twombly , 550 U.S. at 555. T he language Salesforce criticizes does not either draw a legal conclusion or reframe the elements under Sec- tion 1595. Rather, the language adds helpful detail. Just as a “tailored suit” is different from a “suit,” so “tailored services” are a narrower concept than “services.” The same is true of “unique needs,” “targeted solutions,” and “personalized support.” On this point, the district court requir ed too much detail at the pleading stage.
[19] Salesforce’s reliance on B.M. , 2020 WL 4368214, at *5, is misplaced for the same reasons.
[20] Consequently, Geiss is an outlier whose gloss on “knowingly bene- fits” has been rejected by virtually every other court. See Red Roof Inns, Inc. , 21 F.4th at 723 – 24 (concluding that a plaintiff must allege only “that the defendant knew it was receiving some value from participating in the alleged venture”); Ricchio , 853 F.3d at 556. S ee also Lundstrom , 2021 WL 5579117, at *4 – 5; Twitter, Inc. , 555 F. Supp. 3d at 902, 905 – 06; J.L. , 521 F. Supp. 3d at 1060– 61; Hilton Worldwide Holdings Inc. , 484 F. Supp. 3d at 935 – 36; S.Y. , 476 F. Supp. 3d at 1257; B.M. , 2020 WL 4368214, at *4; A.C. , 2020 WL 3256261, at *4; Doe S.W. , 2020 WL 1244192, at *5; H.H. , 2019 WL 6682152, at *2; M.A. , 425 F. Supp. 3d at 964 – 65 (rejecting Geiss and conclud- ing that “the rental of a room constitutes a financial benefit from a rela- tionship with the trafficker sufficient to meet” the “knowingly benefit” el- ement). But see Canosa , 2019 WL 498865, at *24 (civil defendants had “sym- biotic relationship” with film producer Harvey Weinstein that evinced “causal link between their acts and practices”).
[21] In 2018, Congress amended Section 230 via the Allow States and
Victims to Fight Online Sex Trafficking Act (FOSTA),
[22] “The term ‘interactive computer service’ means any information
service, system, or access software provider that provides or enables com-
puter access by multiple users to a computer server, including specifically
a service or system that provides access to the Internet and such systems
operated or services offered by libraries or educational institutions.”
[23] “The term ‘access software provider’ means a provider of software
(including client or server software), or enabling tools that do any one or
more of the following: (A) filter, screen, allow, or disallow content;
(B) pick, choose, analyze, or digest content; or (C) transmit, receive, dis-
play, forward, cache, search, subset, organize, reorganize, or translate co n-
tent.”
[24] Backpage’s successful invocation of