I. INTRODUCTION
Before the Court is a Motion to Dismiss filed by Defendants VIZIO Inc., VIZIO Holdings, Inc., VIZIO Inscape Technologies, LLC, and VIZIO Inscape Services, LLC (collectively, “Vizio”). (Mot., Doc. 116.) Plaintiffs Dieisha Hodges, Rory Zufo-lo, William DeLaurentis, John Walsh, Chris Rizzitello, and Linda Thomson filed an Opposition, and Defendants replied. (Opp’n, Doc. 121; Reply, Doc. 123.) For the following reasons, the Court GRANTS IN PART and DENIES IN PART Defendants’ Motion to Dismiss.
II. BACKGROUND
Vizio is the second-largest manufacturer of “Smart TVs,” cutting-edge televisions equipped with integrated software that enables consumers to access the Internet and
Plaintiffs allege that, unbeknownst to them, Vizio’s Smart TVs use automatic content recognition software to collect and report consumers’ content viewing histories. (Id. ¶¶ 39, 50, 127.) This software, called “Smart Interactivity,” collects up to 100 billion content “viewing data points” along with detailed information about a consumer’s digital identity, such as consumers’ IP addresses, zip codes, MAC addresses, product model numbers, hardware and software versions, chipset IDs, region and language settings, as well as similar information about other devices connected to the same network. (Id. ¶¶ 39, 42, 54, 62.) The Smart Interactivity software transmits this information to Vizio’s Inscape data services platform, which identifies the content a consumer has been watching by comparing the “viewing data points” to a database of existing content. (Id. ¶¶50, 62.) Vizio then sells all of this information to advertisers and media content providers so. that they can deliver highly targeted advertisements to Vizio Smart TVs, and any smartphones, tablets, or computers connected to the same network. (Id. ¶¶ 2, 5, 35, 41-42.) .
Plaintiffs contend that the constellation of information Vizio shares about consumers’ digital identities “provides a ‘game plan’ to associate individuals with their viewing habits.” (Id. ¶72.) One digital identifier that Vizio discloses, a MAC address, is a unique 12-digit identifier assigned to every mobile device, computer, Smart TV, or other electronic device. (Id. ¶ 69.) Because a MAC address is tied to a device’s embedded chipsets, the identifier remains unchanged throughout the life of the electronic device. (Id,) MAC addresses, Plaintiffs allege, are frequently linked to an individual’s name and can be used to acquire highly specific geolocation data. (Id. ¶¶ 70-71.) And, even if a MAC address alone is insufficient to identify a person, the information can readily identify a person when combined with the other information that Vizio discloses, such as IP addresses, zip codes, product model numbers, hardware and software versions, chipset IDs, and region and language settings. (Id. ¶¶ 72-79.) To support their argument, Plaintiffs provide two case studies where researchers were able to identify a significant percentage of individuals by analyzing several details about them. (Id. ¶¶ 74-78.) Plaintiffs also point to a Vizio prospectus, which highlights how the In-scape data services platform is able to “provide[ ] highly specific viewing behavior data on a massive scale with great accuracy.” (Id. ¶ 62.)
Vizio’s data collection and dissemination practices, Plaintiffs contend, are not adequately disclosed in its marketing or privacy policies. (Id. ¶¶22, 81-94, 105.) The packaging for its Smart TVs highlights Vizio’s Internet Apps and Internet Apps Plus without mentioning that, if consumers use these features, Vizio’s Smart Interactivity software will collect and disseminate information about their viewing history and digital identity. (Id. ¶¶ 81-85.) Nowhere during the setup process for a Vizio Smart TV does Vizio reference its Smart Interactivity software. (Id. ¶85.) Vizio’s Privacy Policy, which consumers can view in very small font under the “Reset & Admin” submenu, assuages consumers that it collects only “non-personal” and “anonymous” information and does not re
Contrary to the industry’s standard practice, Vizio’s Smart TVs come with Smart Interactivity automatically enabled. (Id. ¶¶ 6, 61.) To turn off Smart Interactivity, consumers must navigate through the Smart TV’s menu to an obscure settings option that does not describe what Smart Interactivity does. (Id. ¶¶ 7, 86.) If a Smart TV is reset to its factory default settings— either intentionally or inadvertently—the Smart Interactivity software reactivates without consumers receiving any notice. (Id. ¶ 66.) A 2016 report by the security software company Avast found that the “off’ capability for Smart Interactivity was not functional “for months, if not years.” (Id. ¶¶7, 66.) So, even if consumers believed they had disabled Smart Interactivity (and the feature appeared to be “off’), their Smart TVs were still transmitting their digital information without their knowledge. (Id.)
Vizio allegedly has a strong incentive to ensure that consumers do not disable its Smart Interactivity software. (Id. ¶ 44.) Vi-zio’s business model relies on the profits from its sales of consumer data to compensate for its relatively slim margins on Smart TVs. (Id. ¶¶ 43-44.) Vizio distinguishes its Inscape data services platform from competitors such as A.C. Nielson and Rentrak based on its ability to provide highly detailed information about 8 million American consumers in “real time.” (Id. ¶¶ 40, 42.) As Vizio noted in an SEC filing, if consumers objected to or opted out of its Smart Interactivity software, Vizio’s growth strategy would be jeopardized. (Id. ¶¶ 43-44.)
Plaintiffs assert they purchased Vizio Smart TVs unaware of Vizio’s data collection and dissemination practices. (Id. ¶¶ 16-21.) They provide details about their Vizio Smart TVs, such as the model numbers and cities where they purchased them, and describe how they used their Vizio Smart TVs to watch on-demand video content. (Id.) After learning about Vizio’s Smart Interactivity software, Plaintiffs disconnected their Smart TVs from the Internet or ceased watching certain on-demand video content on them. (Id.) Plaintiffs allege that, had they known about Vizio’s data collection and disclosure practices, they would not have purchased their Vizio Smart TVs or would have paid less for them. (Id.' ¶ 22.)
Based on these allegations, Plaintiffs bring various privacy and misrepresentation-based claims under both federal and state law. Plaintiffs allege federal claims under the Video Privacy Protection Act (VPPA) and the Wiretap Act. (Id. ¶¶ 111— 32.) Under state law, Plaintiffs bring common lawjfraud and negligent misrepresentation claims as well as consumer protection claims under California’s Consumers Legal Remedies Act, California’s Unfair Competition Law (“UCL”), California’s False Advertising Law, Florida’s Deceptive and Unfair Trade Practices Act, New York’s General Business Law sections 349 and 350, Massachusetts’s Chapter 93A, and Washington’s Consumer Protection Act. (Id. ¶¶ 150-241, 250-53, 263-87, 301-17.) As for their state law privacy claims, Plaintiffs allege intrusion upon seclusion claims as well as causes of action under the California Constitution,
III. LEGAL STANDARD
A defendant may move to dismiss an action for lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(1). Fed, R. Civ. P. 12(b)(1). “Dismissal for lack of subject matter jurisdiction is appropriate if the complaint, considered in its entirety, on its face fails to allege facts sufficient to establish subject matter jurisdiction.” In re Dynamic Random Access Memory (DRAM) Antitrust Litig.,
In deciding a motion to dismiss under Rule 12(b)(6), courts must accept as true all “well-pleaded factual allegations” in a complaint. Ashcroft v. Iqbal,
“[WJhere a complaint includes allegations of fraud, Federal Rule of Civil Procedure 9(b) requires more specificity including an account of the ‘time, place, and specific content of the false representations as well as the identities of the parties to the misrepresentations.’ ” Swartz v. KPMG LLP,
IV. DISCUSSION
In their Motion, Defendants contend that Plaintiffs have not suffered a concrete injury sufficient to confer Article III standing. (Mem. at 6-13.) Defendants also move to dismiss all of Plaintiffs’ claims for failure to state a claim. (Mem. at 13-38.) The Court will first examine whether Plaintiffs have Article III and statutory standing before turning to whether they have adequately pleaded their claims.
A. Article III Standing
For Plaintiffs to have Article III standing, they must (1) have suffered an “injury in fact” that is “concrete and particularized” and “actual or imminent, not conjectural or hypothetical,” (2) the harm must be “fairly tracefeble]” to the defendants’ conduct, and (3) the Court must be able to redress the claimed injury. Lujan
“For an injury to be ‘concrete,’ it must be ‘real,’ and not ‘abstract.’ ” Rodriguez v. El Toro Med. Inv’rs Ltd. P’ship, No. SACV 16-59 (JLS) (KES),
i. The Video Privacy Protection Act and Wiretap Act Claims
1. The Common Law History of the Right to Privacy
Plaintiffs’ federal claims under the Wiretap Act bear a “close relationship” to the tort of invasion of privacy. See Spokeo,
Seventy years after the publication of Warren and Brandeis’s original article, William Prosser added clarity to the field by identifying four distinct torts that fell under the general term “invasion of privacy”: intrusion upon seclusion, public disclosure of private facts, false light, and appropriation of a person’s name or likeness. See Prosser, supra, at 389-407. Of particular relevance here, Prosser found that intrusion upon seclusion covered a
The Second Restatement adopted Prosser’s interpretation of intrusion upon seclusion, defining the tort as the intentional intrusion “upon the solitude or seclusion of another or his private affairs or concerns ... if the intrusion would be highly offensive to a reasonable person.” Restatement (Second), of Torts § 652B (1977). Like Prosser, the Second Restatement identified as examples of actionable conduct eavesdropping (“with or without .mechanical aids”), examining, a person’s private correspondence or records without consent, and making repeated telephone calls. See id. at cmts. b, c. While the modern contours of the tort of intrusion upon seclusion—and invasion of privacy more broadly—may not encompass the kind of detailed collection of- a consumer’s content viewing history alleged here, the close similarity between the conduct proscribed under the Wiretap Act and the tort of intrusion upon seclusion confirms the concreteness of Plaintiffs’ injury.
Plaintiffs’ VPPA claims are even more deeply rooted in the common law. Warren and Brandéis traced the development of the tort of invasion of privacy in part to cases involving the disclosure of information in breach of a confidential relationship. See Warren & Brandeis, supra, at 207-11; Prosser, supra, at 389-407 (observing that there must be “some breach of contract, trust or confidential relation” for a- disclosure of information to a limited group of people to be tortious). Here, like in many other circumstances, the duty of confidentiality is imposed by statute. See In re Nickelodeon Consumer Privacy Litig.,
2. Congress’s Judgment
Besides the close relationship between Plaintiffs’ federal causes of action and well-established torts, Congress has determined that the interception of a person’s electronic communications and the unauthorized disclosure of a person’s video viewing history are sufficiently harmful to warrant private causes of action. “[Because Congress is well positioned to identify intangible harms that meet minimum Article III requirements,” its conclusion is “instructive and important.” Spokeo, Inc.,
In sum, both history and Congress’s judgment demonstrate that Plaintiffs’ claimed injuries are sufficiently concrete for Plaintiffs to have standing to bring suit under the Video Privacy Protection Act and Wiretap Act.
ii.State Law Privacy Claims
For similar reasons, Plaintiffs have Article III standing to pursue their state law claims for invasion of privacy and intrusion upon seclusion. See Opperman v. Path, Inc.,
iii.Consumer Protection Claims
As for their state consumer protection claims, Plaintiffs’ allege that they “would not have purchased, or would have paid less for, their Vizio Smart TVs had Defendants not concealed their collection and disclosure of Plaintiffs’ personal information. (Compl. ¶¶ 14, 22, 180, 188, 192, 200, 212, 214, 219, 225, 235, 237, 273, 278, 286.) Such “palpable economic injuries have long been recognized as sufficient to lay the basis for standing.” Sierra Club v. Morton,
iv.Scope of Named Plaintiffs’ Article III Standing
Defendants finally contend that Plaintiffs lack Article III standing to bring claims on behalf of consumers who purchased Smart TVs with SmartCast because Plaintiffs did not purchase Smart TVs with this software. (Mem. at 12-13; Reply at 4.) Plaintiffs respond that the products and operative facts at issue are sufficiently similar to give them standing to bring claims on behalf of purchasers of Vizio TVs with SmartCast as well. (Opp’n at 10.)
The first approach, which holds that a putative class member has standing to represent only those who purchased the exact same model, is irreconcilable with the Supreme Court’s decision in Gratz v. Bollinger,
The second approach, which characterizes the question as one solely of adequacy and typicality under Rule 23(a), is also difficult to square with Supreme Court precedent. In Blum v. Yaretsky, the Supreme Court held that nursing home patients, though having standing to represent a class of patients threatened with discharges or transfers to lower levels of care, did not have standing to represent those threatened with transfers to higher levels of care.
The Court, therefore, finds that the third approach most closely accords with Blum, Lewis, and Gratz. Using the “substantially similar” standard, the overarching question is whether the plaintiffs averred injury is substantially similar to the claims of those she seeks to represent.
Here, Plaintiffs allege that their Smart TVs and those with SmartCast collect and disclose the same information through Vizio’s Smart Interactivity software. (Compl. ¶¶ 55, 58.) While Plaintiffs’ Complaint includes a few paragraphs alleging additional information collected by Vizio’s SmartCast software (id. ¶¶48, 55, 57), none of Plaintiffs’ alleged injuries hinge on the collection of this additional information. Plaintiffs, therefore, have adequately alleged that Vizio’s SmartCast-en-abled Smart TVs and their Smart TVs are “sufficiently similar” for Plaintiffs to have Article III standing to represent a class encompassing purchasers of both types of televisions.
In sum, because Plaintiffs have adequately pleaded Article III standing, the Court DENIES Defendants’ Motion to Dismiss for lack of subject matter jurisdiction.
B. Statutory Standing
Unlike Article III standing, statutory standing is not a question of subject matter jurisdiction but rather an element of a plaintiffs cause of action. As such, statutory standing is properly scrutinized under Rule 12(b)(6). See Maya,
While the viability of a price premium theory may be less settled under New York’s General Business Law sections 349 and 350, see In re: Lenovo Adware Litigation, No. 15-MD-02624-RMW,
Accordingly, Defendants’ Motion to Dismiss Plaintiffs’ state consumer protection claims for lack of statutory standing is DENIED.
C. Video Privacy Protection Act (VPPA) Claims
Enacted in 1988, the Video Privacy Protection Act provides that “[a] video tape service provider who knowingly discloses, to any person, personally identifiable information concerning any consumer of such provider shall be liable to the aggrieved person .,.. ” 18 U.S.C. § 2710(b)(1) (emphasis added); see Video Privacy Protection Act of 1988, S. 2361, 100th Cong., 102 Stat. 3195 (1988). Defendants seek to dismiss Plaintiffs’ VPPA claims, arguing that they are not “video tape service provider[s],” that Plaintiffs are not “consumer[s]” as defined by the statute, and that Defendants do not disclose “personally identifiable information.” (Mem. at 12-21.)
“[W]hen [a] statute’s language is plain, the sole function of the courts—at least where the disposition required by the
i. “Video Tape Service Provider”
The VPPA provides that a “ ‘video tape service provider’ means any person, engaged in the business, in or affecting interstate or foreign commerce, of rental, sale, or delivery of prerecorded video cassette tapes or similar audio visual materials ...” 18 U.S.C. § 2710(a)(4). Defendants contend that they are not “engaged in the business ... of ... delivery of ... similar audio visual materials.” (Mem. at 13-16.)
The plain text of the statute provides otherwise. As an initial matter, Congress’s use of a disjunctive list (i.e., “engaged in the business ... of ... rental, sale, or delivery”) unmistakably indicates that Congress intended to cover more than just the local video rental store. Indeed, lest the word “delivery” be superfluous, a person need not be in the business of either renting or selling video content for the statute to apply. Further, Congress’s use of the phrase “similar audiovisual materials” indicates that the definition is medium-neutral; the defendant must be in the business of delivering video content, but that content need not be in a particular format. See, e.g., In re Hulu Privacy Litig., No. C 11-03764 LB,
Finally, to be’ a “video tape service provider,” a defendant must be “engaged in the business ... of ... delivery of’ video content. 18 U.S.C. § 2710(a)(4) (emphasis added). When used in this context, “business” connotes “a particular field of endeavor,” i.e., a focus of the defendant’s work. See Webster’s Third New International Dictionary 302 (1981) (def. Id); see also The American Heritage Dictionary: Second College Edition 220 (1991) (defs. la, lb); 2 Oxford English Dictionary 695 (1989) (def. 14b); Webster’s New World Dictionary; Third College Edition 189 (1988) (def.. 1). Under this definition, a defendant can be “engaged in the business” of delivering video content even if other actors also take part in the delivery of the same video content. But, for the defendant to be engaged in the business of delivering video content, the defendant’s product must not only be substantially involved in the conveyance of video content to consumers but also significantly tailored to serve that purpose.
Take, for instance, a letter carrier 'who physically places a package that happens to contain a videotape into a consumer’s mailbox. No person is more obviously “delivering” a video tape to a consumer than this employee. Yet, the letter carrier could not be characterized as “engaged in the business” of delivering video content because her job responsibilities are in no way tailored to delivering packages that contain videotapes as opposed to any other package. In the same way, the developers of many other products or services that might be peripherally or passively involved in video content delivery do not fall within
In keeping with this statutory definition, Plaintiffs plausibly allege that Vizio’s Internet Apps and Internet Apps Plus are designed to enable consumers to seamlessly access Netflix, Hulu, YouTube, and Amazon Instant Video content in their homes. (Compl. ¶¶ 33-34, 45-46, 81.) A reasonable inference is that Vizio enters into agreements with these content providers to enable consumers to access them programming on Vizio’s Smart TVs. (See id. ¶ 45; Opp’n at 12-13.) Vizio then advertises its Smart TVs as “a passport to a world of entertainment, movies, TV shows and more,” and charges consumers a premium for its Vizio Smart TVs specifically because these Smart TVs are designed to stream video content through Vizio’s Internet Apps and Internet Apps Plus software. (Compl. ¶¶34, 81.) Essentially, Vizio has designed its Smart TVs to perform all the same functions of—and its Smart TVs are in direct competition with—Roku’s devices (see id. at ¶ 18; Opp’n at 11); that Vizio has integrated what others sell as a separate device into its televisions makes no meaningful difference.
Vizio’s alternative construction of the statute starts with the implicit premise that there can be only one video tape service provider in any transaction, and, because the content provider (like Hulu or Netflix) does fit within the statutory definition of a video tape service provider, Vizio cannot. (See Mem. 14-16.) But such a limitation is found nowhere in the text of the statute, and Vizio’s construction fails to give the phrase “engaged in the business ... of ’ any real meaning.
Defendants also resort to parade of hor-ribles, arguing that if Vizio is considered a video tape service provider, “[cjountless products and services,” such as “shipping services, Blu-Ray players, smartphones, app stores, cable boxes, wireless routers, personal computers, video game consoles, and even cars” would also fall within the statutory definition of video tape service providers. (Mem. at 16; Reply at 5-7.) But the statute’s text once again alleviates Vi-zio’s concerns. Most of these products or services are far too peripherally or passively involved in the delivery of video content to reasonably constitute “the business” of delivering video content. By contrast, Plaintiffs allege that Vizio has developed a product intimately involved in the delivery of video content to consumers, has created a supporting ecosystem to seamlessly deliver video content to consumers (including entering into agreements with content providers such as Netflix and Hulu), and has marketed its product to consumers as a “passport” to this video content. Other textual limitations further cabin the scope of the Act: The VPPA applies only if the consumer is a “renter, purchaser, or subscriber of goods or services” from the video tape service provider. 18 U.S.C. §§ 2710(a)(1), (b). And a video tape service provider is liable only if it releases personally identifiable information without the consent of the consumer. Id. §§ 2710(a)(3), (b). Accordingly, Vizio’s policy-laden argument cannot overcome the statute’s plain meaning.
ii. “Consumer”
The VPPA defines a “consumer” as “any renter, purchaser, or subscriber of goods or services from a video tape service provider.” 18 U.S.C. § 2710(a)(1). Thus, unlike its definition of “video tape service provider,” the statute’s definition of “consumer” is somewhat narrower than the word’s ordinary meaning. Because Plaintiffs do not contend they are renters or purchasers, they must be “subscribers” for the VPPA to apply.
In Ellis v. Cartoon Network, Inc., the Eleventh Circuit held that “a person who downloads and uses a free mobile applica
By contrast, in Yershov v. Gannett Satellite Information Network, Inc., the First Circuit concluded that a consumer need not make a monetary payment in return for a mobile application to be considered a “subscriber.”
Here, Plaintiffs are more plausibly “subscribers” than the plaintiffs in either Ellis or Yershov because they allege that they do pay for Vizio’s applications. Plaintiffs contend that Vizio charges a premium for its Smart TVs because of their ability to seamlessly deliver video content to consumers through Vizio’s Internet Apps, Internet Apps Plus, and SmartCast. (Compl. ¶¶ 22, 33.) After consumers purchase their Smart TVs, Vizio continues to service them by pushing software updates that improve security and provide additional features. {See id. ¶¶ 45, 59, 66, 92.) Thus, under either Ellis or Yershov’s holdings, Plaintiffs plausibly allege an association with Vizio that is sufficiently substantial and ongoing to constitute a subscription,
iii. “Personally Identifiable Information”
Defendants’ finally contend that they do not disclose “personally identifiable information” because “Plaintiffs have alleged ... only that Defendants have disclosed device identifying information.” (Mem. at 17-21; Reply 7-9.) For their part, Plaintiffs assert that the array of data Vizio purportedly discloses about them—including MAC addresses, IP addresses, zip codes, chipset IDs, product model numbers, hardware and software versions, region and language settings, viewing history, purchase history, and “the presence of other devices connected to [the same] network”—falls within the statutory definition of “personally identifiable information.” (Opp’n 15-18; Compl. ¶¶ 63, 72.)
By its own terms, the VPPA prohibits the disclosure of “personally identifiaWe information.” 18 U.S.C. § 2710(a)(3) (emphasis added). The suffix “able” means “capable of,” so “personally identifiable information” plainly extends beyond a consumer’s name. Webster’s Third New International Dictionary 4, 1123 (1981). Indeed, had Congress intended to limit the statute to protecting the disclosure of an individual’s name (when linked to particular video rentals), it could have easily done so and avoided the Act’s broader—and admittedly clunky—phrasing. See Yershov,
The statutory structure confirms that Congress intended “personally identifiable information” to encompass more than a person’s name and'physical address. In the original Act, Congress included both an opt-out and opt-in disclosure process.- If a consumer opted in to a disclosure, a video tape service provider could reveal any type of personally identifiable information. Video Privacy Protection Act of 1988, S. 2361, 100th Cong. § 2,102 Stat. 3195 (1988). But if the consumer had to opt out of the disclosure, the video tape service provider could disclose only the consumer’s name and address. See id. Thus, Congress contemplated that the Act would protect more than just a person’s name or physical ad~ dress. Yershov v. Gannett Satellite Info. Network, Inc,,
Based on many of these textual clues, the First Circuit in Yershov concluded that “personally identifiable information” extends beyond a person’s name to embrace “information reasonably and foreseeably likely to reveal which .•.. videos [the plaintiff] has obtained.”
By contrast, the Third Circuit in In re Nickelodeon held that IP addresses do not constitute personally identifiable information under the VPPA. See
The Court finds Yershov to be a more persuasive interpretation of the VPPA than In re Nickelodeon, First, Yer-shov focused foremost on the text of the statute, while In re Nickelodeon turned quickly to “the more controversial realm of
Yet, the Court need not disagree with In re Nickelodeon because Plaintiffs allege that Vizio’s Inscape platform discloses even more about their digital identities—in particular, consumers’ MAC addresses and information about other devices connected to the same network. Plaintiffs allege that MAC addresses are frequently linked to an individual’s name and can be used to acquire highly specific geolocation data. (Compl. ¶¶ 69-71.) MAC addresses allegedly can also identify a person when combined with Vizio’s disclosure of consumers’ IP addresses, zip codes, product model numbers, hardware and software versions, chipset IDs, and region and language settings. (Id. ¶¶ 72-79.) Besides collecting and disclosing extensive information regarding consumers’ Smart TVs, Vizio supposedly collects and discloses information about all other devices connected to the same network. (Id. ¶¶63, 72.) Plaintiffs have thus plausibly alleged that Vizio’s provision of—to quote its own prospectus—“highly specific viewing behavior data on a massive scale with great accuracy” amounts to the disclosure of personally. identifiable information.
The Court stresses the posture of this case: Ultimately, Plaintiffs will have to demonstrate that Vizio’s disclosures are “reasonably and foreseeably likely to reveal” what video content Plaintiffs have watched. Yershov,
D. Wiretap Act Claims
The Wiretap Act affords a private right of action to “any person whose wire, oral, or electronic communication is intercepted, disclosed, or intentionally used in violation of this chapter .... ” 18 U.S.C. § 2520(a). Defendants argue that Plaintiffs’ Wiretap Act claims should be dismissed because Defendants do not “intercept” any electronic communications and the messages they collect do not constitute the “contents” of an electronic communication. (Mem. at 23-27.) For the reasons elaborated below, the Court concludes that Plaintiffs have inadequately pleaded interception.
The Wiretap Act proscribes the “intentional[ ] interception] ... [of] any wire, oral, or electronic communication.” 18 U.S.C. § 2511(l)(a). In Konop v. Hawaiian Airlines, Inc., the Ninth Circuit held that, for an electronic communication “to be ‘intercepted’ in violation of the Wiretap Act, it must be acquired during' transmission, not while it is in electronic storage.”
While some language in Konop suggests that information cannot be “intercepted” within the meaning of the Wiretap Act if it is acquired simultaneously with its arrival, see id. at 879-880, the issue was not squarely presented in the case. The plaintiff in Konop alleged that his former employer used another employee’s password to access disparaging posts that the plaintiff kept on his online bulletin board. Id. at 873. Thus, the information the employer acquired had been in electronic storage for a considerable period before his employer accessed it. Like Konop, most of the decisions in this Circuit addressing the simultaneous transmission requirement involve the collection of emails or other communications that were unquestionably in electronic storage for a substantial period before the defendants collected them. See, e.g., Theofel v. Farey-Jones,
In United States v. Szymuszkiewicz, the Seventh Circuit concluded that information acquired “within a second of each message’s arrival and assembly” satisfies the contemporaneous interception require
Several circuits have said that, to violate § 2511, an interception must be “contemporaneous” with the communication .... [The defendant] sees this as support for his “in flight” reading, but it is not. “Contemporaneous” differs from “in the middle” or any football metaphor. Either the server in Kansas City or [his supervisor’s] computer made copies of the messages for [the defendant] within a second of each message’s arrival and assembly; if both [the defendant and his supervisor] were sitting at their computers at the same time, they would have received each message with no more than an eyeblink in between. That’s contemporaneous by any standard. Even if [the supervisor’s] computer (rather than the server) was doing the duplication and forwarding, it was effectively acting as just another router, sending packets along to their destination ....
Id. at 705-06 (citations omitted). In reaching this conclusion, the Seventh Circuit cited Konop, see id. at 706, indicating that the court found its decision consistent with the Ninth Circuit’s simultaneous transmission requirement.
Szymuszkiewicz emphasized that its holding was necessary to keep modern telephonic communications within the purview of the Wiretap Act. Id. Interception of telephone calls made through modern “packet switching” technology “must be done by programming a computer to copy the contents [of packets] it sends along ....” Id. So, if interception “within a second of each message’s arrival and assembly” did not qualify as “simultaneous,” the Wiretap Act would no longer govern phone calls—the very communications Congress had in mind when it enacted the Wiretap Act. Id. at 704, 706; see In re Carrier IQ, Inc.,
But, even if the Court were to accept Szymuszkiewicz’s reasoning, Plain
E. Fraud Claims
Defendants move to dismiss Plaintiffs’ fraud-based claims
i. Fraudulent Omission-Based Claims
Under Rule 9(b), a party must plead allegations of fraud, whether through affirmative misrepresentations or omissions, “with particularity.” Fed. R. Civ. P. 9(b). To satisfy this Rule, a plaintiff must generally allege the ‘“who, what, when, where, and how’ of the misconduct charged.” Kearns v. Ford Motor Co.,
Relying on Marolda v. Symantec Corp., Defendants assert that to satisfy Rule 9(b), a fraudulent omission claim “must describe the content of the omission and where the omitted information should or could have been revealed, as well as provide representative samples of advertisements, offers, or other representations that plaintiff relied on to make her purchase and that failed to include the allegedly omitted information.”
Here, Plaintiffs allege that Vizio (“who”) failed to disclose to consumers that its Smart Interactivity software collects and discloses consumers’ viewing histories as well as personally identifiable information related to their Vizio Smart TVs and other devices connected to the same Wi-Fi network (“what”). (Compl. ¶¶ 35-42, 45-73.) This material information, Plaintiffs allege, was not disclosed prior to their purchase of their Smart TVs or while they used their Smart TV’s capabilities (“when”) on the product packaging, in Vizio’s Privacy Policy, or on Vizio’s website (“where”). (Id. ¶¶ 81-94.) Besides providing the exact model numbers for their televisions and where they purchased them, Plaintiffs provide a representative sample of a Vizio Smart TV’s product packaging that omits any mention of Vi-zio’s Smart Interactivity software. (Id. ¶¶ 16-21, 81-84.) Plaintiffs further contend that, when using a Vizio Smart TV, the only reference to Smart Interactivity is “deeply imbedded in an obscure settings menu” and “does not explain what Smart Interactivity is.” (Id. ¶¶ 7, 85.) Viewed together, Plaintiffs’ allegations are as well pleaded, if not more detailed, than those found sufficient in Velasco, Philips, and MacDonald. See
ii. Affirmative Fraud-Based Claims
In contrast to Plaintiffs’ omission-based fraud claims, Plaintiffs’ affirmative fraud-based claims are devoid of the “who, what, where, when, and how” allegations required by Rule 9(b). For instance, Plaintiffs contend that certain language in Vi-zio’s Privacy Policy and on Vizio’s website is misleading, but none of the Plaintiffs dllege that they even viewed these purported misrepresentations. (See Compl. ¶¶22, 88.) See, e.g., Dwell v. Sharp Healthcare,
F. Negligent Misrepresentation Claims
Under California law, “[a] negligent misrepresentation claim ‘requires a positive assertion,’ not merely an omission.” Lopez v. Nissan N. Am., Inc.,
Plaintiffs’ negligent misrepresentation claims under California and Washington law are inadequately pleaded for much the same reason why Plaintiffs’ affirmative fraud claims fail: Plaintiffs allege that Vizio’s Smart TV packaging is misleading because Vizio advertises how its Smart TVs are ideal for watching programming from cable, satellite, and streaming content providers as well from devices connected to the Smart TV without disclosing that utilizing these features could result in Vizio collecting and disclosing consumers’ personally identifiable information. (Id. ¶¶ 81-84.) None of the statements on the product packing, however, relate to Vizio’s privacy policies or the security of consumers’ personal information more broadly. Thus, because any alleged statements on Vizio’s product packaging are too remotely related to Vizio’s treatment of consumers’ data to amount to the “positive assertion” necessary to state a claim for negligent misrepresentation, the Court DISMISSES these claims under California and Washington law with LEAVE TO AMEND. See Lopez,
G. False Advertising Law Claims
The False Advertising Law (FAL) prohibits making or disseminating “any statement” in the course of “dis-pos[ing]” of any property, product, or service that “is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading .... ” Cal. Bus. & Prof. Code § 17500. Under the FAL, courts apply the “reasonable consumer” test, which requires a plaintiff to show that “members of the public are likely to be deceived.” Williams v. Gerber Products Co.,
At first glance, districts courts seem to be divided over whether a plaintiff can predicate a FAL claim on a defendant’s failure to disclose certain informa
Plaintiffs allege that their FAL claims are premised on “partial representations ... as well as omissions.” (Opp’n at 28 (citing Compl. ¶¶8, 10, 72-79, 84, 90-91.)) But none of the Plaintiffs allege that they were aware that Vizio had represented that it collects only anonymous data, which would be necessary for Plaintiffs to satisfy the FAL’s standing requirement. See In re Tobacco II Cases,
H. Invasion of Privacy and Intrusion Upon Seclusion Claims
The elements of intrusion upon seclusion and invasion of privacy are similar in each of the states included in Plaintiffs’ Complaint. California, Florida, and Washington have all endorsed the definition of the tort found in the Second Restatement, which requires (1) an intentional intrusion, physical or otherwise, “upon the solitude or seclusion of another,” (2) in a manner “highly offensive to a reasonable person.” Deteresa v. Am. Broad. Companies, Inc.,
The California Constitution and Massachusetts Privacy Act create similar causes of action for invasion of privacy. A cause of action under the California Constitution for invasion of privacy requires: (1) “the identification of a specific, legally protected privacy interest,” (2) a reasonable expectation of privacy under the circumstances presented, and (3) a “sufficiently serious” intrusion upon the privacy interest by the defendant. Hill v. Nat’l Collegiate Athletic Assn.,
As an initial matter, the Court rejects Vizio’s' argument that Plaintiffs have no cognizable interest in keeping detailed data about what video content they watch private. (Mem. at 36-37.) Defendants provide no reason why this information would be any less sensitive than the URL information that the Third Circuit found legally protected in In re Google Inc. Cookie Placement. See
Plaintiffs have plausibly alleged a pattern of “highly offensive” conduct. Plaintiffs point to a report by the security software company Avast, which concluded that Smart Interactivity’s “off’ function was not operational “for months, if not years.” (Compl. ¶¶ 7, 65.) So, even if consumers believed they had opted out of Vizio’s data collection practices, Vizio was still collecting their data for a considerable period. (See id.) In addition, Vizio’s Smart Interactivity software switches back on without warning if the Smart TV ever reverts to the factory settings—as can occur through Vizio’s software updates. (Id. ¶ 66.) Consumers would likely not realize for a significant period that Vizio’s collection and disclosure software has been re-enabled because the opt-out feature is allegedly buried in an obscure settings menu. (Id. ¶¶ 7, 85.) Further, Vizio’s disclosure practices are far less routine than, say, the use of cookies at issue in In re Google Inc. Cookie Placement Consumer Privacy Litigation: Plaintiffs allege not only that Vizio collects an exceptionally vast array of information about their digital identities and viewing histories, but also that the standard industry practice is not to collect viewing history data unless a consumer affirmatively opts in. (Id. ¶¶ 6, 61.) Considering the quantum and nature of the information collected, the purported failure to respect consumers’ privacy choices, and the divergence from the standard industry practice, Plaintiffs plausibly allege Vizio’s collection practices amount to a highly offensive intrusion. Defendants’ Motion to Dismiss Plaintiffs’ intrusion upon seclusion, Massachusetts’s Privacy Act, and California Constitution claims is accordingly DENIED.
I. Unjust Enrichment Claims
Defendants contend that the Court should dismiss Plaintiffs’ unjust enrichment claims because they have adequate remedies at law. The Court finds no basis for doing so. The Ninth Circuit has instructed district courts to construe claims for unjust enrichment under California law as quasi-contract claims. Astiana v. Hain Celestial Grp., Inc.,
Y. CONCLUSION
For the foregoing reasons, Defendants’ Motion is GRANTED IN PART and DENIED IN PART. Plaintiffs’ Wiretap Act claims, California Invasion of Privacy Act claims, False Advertising Law claims, negligent misrepresentation claims under California and Washington law, and state law video privacy claims are DISMISSED with LEAVE TO AMEND. To. the extent that Plaintiffs’ fifth, sixth, eighth, ninth, eleventh, fourteenth, and eighteenth causes of action are premised on allegations of affirmative fraudulent conduct, they are DISMISSED with LEAVE TO AMEND. Defendants’ Motion is otherwise DENIED. Plaintiffs are given leave to file a Second Consolidated Complaint within 21 days of this Order. Failure to file a Second Consolidated Complaint by that date shall be deemed consent to the dismissal of Plaintiffs’ claims against Defendants with prejudice.
Notes
. The parties briefed Plaintiffs’ sixteenth cause of action, titled “Privacy Violation Based on Intrusion” (see Compl. ¶¶ 294-300), as a cause of action under both the California Constitution and state common law (see Mem. 34-37 & n.18; Opp’n at 31-3S; Reply at 22-24), so the Court will treat it as such for purposes of this Motion. For clarity, Plaintiffs should specify in any amended complaint that they are alleging claims under both the California Constitution and common law,
. The only case Defendants cite in which a district court dismissed a VPPA claim for lack of standing involved a complaint so inadequately pleaded that there was no support for the plaintiffs’ claimed injury. See Mendoza v. Microsoft Inc., No, C14-316-MJP,
. While the similarity of the products at issue is one important factor to consider, the similarity of the operative facts that give rise to the putative class representative and putative class’s claims is equally important. See In re L'Oreal Wrinkle Cream Mktg. & Sales Practices Litig., No. CIV. 2:12-03571 WJM,
. Although the Court does not believe that resorting to the legislative history is necessary, the Senate Report on the VPPA confirms that this different wording (i.e., "includes” instead of “means”) was intentional. S, Rep. No. 100-599, at 12 (1988), as reprinted in 1988 U.S.C.C.A.N. 4342-1, 4342-9 ("paragraph (a)(3) uses the word "includes” to establish a minimum, but not exclusive, definition of personally identifiable information.”),
. The Third Circuit’s legislative history analysis focused on two statements made at a joint hearing that do not obviously concern the proper scope of the term “personally identifiable information” and relate to a prior version of the bill that also covered libraries. In re Nickelodeon Consumer Privacy Litig.,
. While this Motion was pending, the FTC, in conjunction with a consent decree, filed a complaint against Vizio regarding its collection and disclosure practices. (See Notice of Pendency, Doc. 128.) Because the FTC’s allegations have not been incorporated into Plaintiffs’ Complaint, the Court does not consider them in determining the plausibility of Plaintiffs’ claims.
. Plaintiffs have chosen to abandon their state law video privacy claims (Opp’n at 3 n.2), so the Court DISMISSES Plaintiffs’ fourth, tenth, and twelfth causes of action.
. DirecTV, LLC v. Wright, No. 15-CV-474-FPG,
. Courts have generally construed the California Invasion of Privacy Act ("CIPA”) as coextensive with the Wiretap Act, Sunbelt Rentals, Inc. v. Victor,
. By "fraud-based claims,” the Court refers to Plaintiffs' fifth, sixth, eighth, ninth, eleventh, fourteenth, and eighteenth causes of action to the extent that these claims sound in fraud. See Kearns v. Ford Motor Co.,
. Because of the substantial overlap between the constitutional and common law causes of action under California law, California courts have examined claims brought under both sources together. See Hernandez v. Hillsides, Inc.,
. Defendants contend that "in Massachusetts, New York, Florida, and Washington ... an unjust enrichment claim cannot be pleaded when an adequate remedy at law exists.” (Reply at 25.) The Court finds no basis in the cases Defendants cite for a rule holding that a court must determine on a motion to dismiss whether an adequate remedy at law exists; rather, the decisions Defendants reference merely support the uncontroversial proposition that in some circumstances the remedy at law is so obvious from the allegations in a complaint that the question may be resolved on a motion to dismiss. For instance, one of the decisions Defendants reference, Go2Net, Inc. v. Freeyellow.com, Inc.,
