ORDER GRANTING MOTION TO DISMISS
I. BACKGROUND
Plaintiff Jenna Goddard (“Plaintiff’) alleges that she and a class of similarly situated individuals were harmed as a result of clicking on allegedly fraudulent web-based advertisements for mobile subscription services. She alleges that Defendant Google, Inc. (“Google”) illegally furthered this scheme. The facts are set forth more fully in this Court’s previous order granting Google’s motion to dismiss.
See Goddard v. Google,
No. C 08-2738 JF (PVT),
Faced with the implications of this clear analytic framework, which was articulated in the Ninth Circuit’s 2008
en banc
decision in
Roommates,
Plaintiff resorted to creative argument in an attempt to show that her claims did not seek to hold Google liable for the dissemination of online content at all. The Court rejected Plaintiffs artful pleading and dismissed the complaint.
See Goddard,
In her amended complaint, Plaintiff now alleges that “Google’s involvement [in creating the allegedly fraudulent advertisements] was so pervasive that the company controlled much of the underlying commercial activity engaged in by the third-party advertisers.” Amended Complaint ¶ 21. Plaintiff alleges that Google “not only encourages illegal conduct, [but] collaborates in the development of the illegal content and, effectively, requires its advertiser customers to engage in it.”
Id.
2
These allegations, if supported by other specific allegations of fact, clearly would remove Plaintiffs action from the scope of CDA immunity. The quoted allegations, however, are mere “labels and conclusions” amounting to a “formulaic recitation of the elements” of CDA developer liability, and as such, they “will not do.”
Bell Atl. Corp. v. Twombly,
II. LEGAL STANDARD FOR DISMISSAL PURSUANT TO RULE 12(b)(6)
A complaint may be dismissed for failure to state a claim upon which relief may be granted for one of two reasons: (1) lack of a cognizable legal theory; or (2) insufficient facts under a cognizable legal theory.
Robertson v. Dean Witter Reynolds, Inc.,
III. DISCUSSION
As explained at length in this Court’s earlier order, the CDA has been interpreted to provide a “robust” immunity for internet service providers and websites, with courts “adopting a relatively expansive definition of ‘interactive computer service’ and a relatively restrictive definition of ‘information content provider.’ ”
Carafano v. Metrosplash.com, Inc.,
A. Developer liability
Plaintiff identifies several mechanisms by which Google allegedly contributes to the illegality of the offending advertisements, or even “requires” the inclusion of illegal content in such advertisements. Each of these mechanisms involves Google’s “Keyword Tool,” which Plaintiff describes as a “suggestion tool” employing an algorithm to suggest specific keywords to advertisers. Amended Complaint ¶ 22. 3 To demonstrate that the Keyword Tool is not a “neutral tool” of the kind uniformly permitted within the scope of CDA immunity, Plaintiff alleges that when a potential advertiser enters the word “ring-tone” into Google’s Keyword Tool, the tool suggests the phrase “free ringtone,” and that this suggestion is more prevalent than others that may appear. Amended Complaint ¶22. Plaintiff contends that the suggestion of the word “free,” when combined with Google’s knowledge “of the mobile content industry’s unauthorized charge problems,” makes the Keyword Tool “neither innocuous nor neutral.” Pl.’s Opp. at 7. Plaintiff also alleges that Google disproportionately suggests the use of the term “free ringtone” to ordinary users of Google’s web search function, causing them to view the allegedly fraudulent MSSPs’ AdWords with greater frequency-
Even assuming that Google is aware of fraud in the mobile subscription service industry and yet disproportionately suggests the term “free ringtone” in response to an advertiser’s entry of the term “ring-tone,” Plaintiffs argument that the Keyword Tool “materially contributes” to the alleged illegality does not establish developer liability. The argument is nearly identical to that rejected by the Ninth Circuit in
Carafano v. Metrosplash,
Under
Carafano,
even if a particular tool “facilitate^] the expression of information,”
id.
at 1124, it generally will be considered “neutral” so long as users ultimately determine what content to post, such that the tool merely provides “a framework that could be utilized for proper or improper purposes,”
Roommates,
*1198
Like the menus in
Carafano,
Google’s Keyword Tool is a neutral tool. It does nothing more than provide options that advertisers may adopt or reject at their discretion.
See
Pl.’s Opp. at 6 (conceding that advertisers’ use of keywords is discretionary). “[T]he selection of the content [is] left exclusively to the user.”
Carafano,
The insufficiency of Plaintiffs theory becomes even more apparent in the context of her attempted analogy to the facts of
Roommates,
in which a housing website
required
potential subscribers to identify their sex, sexual orientation, and family status, and to indicate their preferred sex, sexual orientation, and family status in a potential roommate. The Ninth Circuit’s partial denial of immunity to the website turned entirely on the website’s decision to
force
subscribers to divulge the protected characteristics and discriminatory preferences “as a condition of using its services.”
Id.
at 1164. Thus, while the court retreated from Carafano’s earlier suggestion in dicta that a website consisting of user-generated content “could
never
be liable because ‘no [user] profile has any content until a user actively creates it,’ ”
Roommates,
Recognizing the narrowness of the Roommates holding, Plaintiff alleges that Google effectively “requires” advertisers to engage in illegal conduct. Yet Plaintiffs use of the word “requires” is inconsistent with the facts that Plaintiff herself alleges. The purported “requirement” flows from Google’s alleged “suggestion” of the phrase “free ringtone” through its Keyword Tool, and from the MSSPs’ purported knowledge that only “free ringtones” generate substantial revenue-producing internet traffic. According to Plaintiff, MSSPs “[fjacing the Hobson’s choice of accepting either Google’s ‘suggestions’ or drastically reduced revenue ... have accepted Google’s ‘suggestions’ to include the keyword ‘free’ along with the keyword ‘ringtone’ in order to advertise to the majority of ‘ringtone’ searches, whether their products are free or not.” Opp. at 8:4-8 (citing Amended Complaint ¶ 26).
In Google’s apt paraphrase, Plaintiff is alleging “that Google’s mathematical algorithm ‘suggests’ the use of the word ‘free’ in relation to ‘ringtone’ as a means of attracting more visitors to [the MSSPs’] sites, and that MSSPs whose offerings are not actually free are literally powerless to resist.” This reasoning fails to disclose a “requirement” of any kind, nor does it suggest the type of “direct and palpable” involvement that otherwise is required to avoid CDA immunity.
Cf. Roommates,
B. Contract claims in light of Barnes v. Yahoo!
As in her original complaint, Plaintiff alleges that she and similarly situated individuals were intended third-party beneficiaries of Google’s Advertising Terms, which in turn incorporate a Content Policy requiring that mobile subscription service advertisers display certain information about their products, including whether downloading the products will result in charges to the consumer.
See
First Amended Complaint, Ex. F. Plaintiff alleges that Google “breached” its Content Policy, and she urges the Court to reconsider the rationale for its prior dismissal of her breach of contract claim in light of the Ninth Circuit’s recent decision in
Barnes v. Yahoo!,
Read as broadly as possible, Barnes stands for the proposition that when a party engages in conduct giving rise to an independent and enforceable contractual obligation, that party may be “h[eld] ... liable [not] as'a publisher or speaker of third-party content, but rather as a counter-party to a contract, as a promisor who has breached.” Id. Theoretically, intended third-party beneficiaries — whose rights under a contract are different from those of the contracting parties but still are legally cognizable — could invoke the distinction drawn in Barnes between liability for acts that are coextensive with publishing or speaking and liability for breach of an independent contractual duty. In a third-party-beneficiary case, “as in any other contract case, the duty the defendant allegedly violated [would] spring[] from a contract — an enforceable promise — not from any non-contractual conduct or capacity of the defendant.” Id. A court thus would be able to infer that the defendant had “implicitly agreed to an alteration” in the baseline rule that there is “no liability for publishing or speaking the content of other information service providers.” Id. at 1108-09.
In the instant case, there is no allegation that Google ever promised Plaintiff or anyone else, in any form or manner, that it would enforce its Content Policy. Under California law, “[i]f a contract is to be a basis of liability for the [defendant’s] violation of [its own terms and conditions] ... [,] it must be a contract in which the [defendant] promises to abide by [these terms].”
Souza v. West-lands Water Dist.,
*1201
Barnes,
Moreover, even if Google had promised to enforce its Advertising Terms and incorporated Content Policy — and it did not — Plaintiff would not be a third-party beneficiary of that promise. In that scenario, Google would be the promisor under the agreement and each allegedly fraudulent MSSP would be a promisee. But a third party is not an intended beneficiary of an agreement unless the
promisee
intends the agreement to benefit the third party.
Souza,
Undoubtedly, the allegedly fraudulent MSSPs
did
promise to abide by the Content Policy, and Plaintiff might well sue
them
as an intended third-party beneficiary of their contract with Google. But Plaintiffs claim against Google rests not on any promise, but on a “general [content] policy ... on the part of [Google],”
Barnes,
IY. CONCLUSION
As in the original complaint, each of Plaintiffs claims would treat Google as the publisher or speaker of third-party content. Yet Plaintiff has failed to allege facts that plausibly would support a conclusion that Google created or developed, in whole or in part, any of the allegedly fraudulent AdWords advertisements. Plaintiff offers numerous theories of such
*1202
involvement, but these theories merely lend truth to the Ninth Circuit’s observation that there almost always will be
some
“argufment] that
something
the website operator did encouraged the illegality.”
Roommates,
[w]here it is very clear that the website directly participates in developing the alleged illegality ... [will] immunity ... be lost.... [I]n cases of enhancement by implication or development by inference!,] • • • section 230 must be interpreted to protect websites not merely from ultimate liability, but from having to fight costly and protracted legal battles.
Id. at 1174-75 (emphasis added). Here, Plaintiffs theory is at best one of “enhancement by implication or development by inference.” These “implications” and “inferences” fall well short of making it “very clear” that Google contributed to any alleged illegality, and Plaintiffs complaint clearly must be dismissed.
In assessing whether Plaintiff once again should be given leave to amend, the Court must consider “the presence or absence of undue delay, bad faith, dilatory motive, repeated failure to cure deficiencies by previous amendments, undue prejudice to the opposing party!,] and futility of the proposed amendment.”
United States v. SmithKline Beecham, Inc.,
First, amendment almost certainly would be futile. In her original complaint and supporting arguments in opposition to Google’s motion to dismiss, Plaintiff largely ignored the analytic framework provided by Roommates and other cases. While she did allege in conclusory fashion that Google assisted its AdWords customers in drafting their advertisements, she offered no allegations to support this claim and failed even to argue it in her papers. Now having been directed explicitly to do so, Plaintiff makes sweeping allegations of Google’s involvement in the AdWords process but offers no more than tenuous “implications” and “inferences” that fail to explain how Google “controlled” or “collaborated” with any MSSP in the creation of any allegedly fraudulent advertisement. This minimally persuasive response to the Court’s clear directive strongly suggests that amendment would be futile.
Second, the Ninth Circuit implicitly has identified a special form of “prejudice” to defendants who improperly are denied early dismissal of claims falling within the zone of CDA immunity. As the court stated in
Roommates,
“close cases .... must be resolved in favor of immunity, lest we cut the heart out of section 230 by forcing websites to ... fight[ ] off claims that they promoted or encouraged — or at least tacitly assented to — the illegality of third parties.”
Roommates,
Notes
. Although “[c]ourts have construed the immunity provisions in § 230 broadly in all cases arising from the publication of user-generated content,”
Doe v. MySpace, Inc.,
. On the basis of recent Ninth Circuit authority, Plaintiff also asks the Court to revisit its holding that her breach of contract claim impermissibly would treat Google as the speaker or publisher of third-party content. The Court addresses Plaintiff's contentions to that effect in Section III.B.
. Plaintiff also alleges that Google representatives meet with certain advertisers in order to assist them with the creation of AdWords, but she does not allege that these representatives have contributed in any way to the allegedly illegal MSSP AdWords that give rise to this action.
. For example, "pre-prepared responses” to a question regarding the poster's "main source of current events” apparently included the phrase "Playboy/Playgirl,” while the question "why did you call” included the response "looking for a one-night stand.”
Carafano,
. Plaintiff also urges the Court to deny the instant motion on the ground that CDA immunity is an affirmative defense that must be raised by the defendant in a responsive pleading. Plaintiff relies exclusively on
Barnes v. Yahoo!, Inc.,
Beyond the fact that (1)
Barnes
held only that "section 230 is an affirmative defense and [is] to [be] treat[ed] ... as such,”
id.
(emphasis removed), and (2) affirmative defenses routinely serve as a basis for granting Rule 12(b)(6) motions where the defense is "apparent from the face of the [c]omplaint,”
Nemet Chevrolet, Ltd. v. Consumeraffairs.com, Inc.,
. The promise in
Barnes
— to remove the falsified and harmful profile page — was made by Yahoo!'s Director of Communications, who assured Barnes that she would "personally walk [Barnes’] statements over to the division responsible for stopping unauthorized profiles and [that] they would take care of [the problem].”
Barnes,
