Trap & Trace Claim Against Rad Power Bikes
Tauler Smith LLP secured a major courtroom win in a California trap & trace claim against Rad Power Bikes. The plaintiff, a California consumer, filed a class action lawsuit alleging that the e-bike company utilized TikTok tracking code on its website to deanonymize users by trapping and tracing their personal information. The digital privacy case is being heard in the U.S. District Court for the Central District of California, which recently ruled on a pre-trial motion filed by the Defendant. The federal court denied the motion to dismiss, which means that the case could move forward to trial. Significantly, the court found that the plaintiff “plausibly alleged” that the TikTok software embedded on the Rad Power Bikes website can qualify as a trap and trace device under the California Invasion of Privacy Act (CIPA).
To learn more about the invasion of privacy lawsuit against Rad Power Bikes, keep reading this blog.
Rad Power Bikes Accused of Using TikTok Software to Collect Personal Data from Website Visitors
Rad Power Bikes Inc. is an electric bicycle company that operates in the United States. The company sells e-bikes that typically use rechargeable batteries to generate power and travel at higher speeds than normal bicycles. Rad Power Bikes sells its bicycles and related accessories primarily at retail showrooms and on the company’s website at radpowerbikes.com.
According to the civil suit in the California Central District Court, the TikTok software on the Rad Power Bikes website instantly collects visitors’ personal data, including device information, browser information, and geographic location. This information is then sent back to TikTok, which allegedly matches the new data to existing data that the social media app already has on hundreds of millions of individual users. The result is that TikTok is able to identify individual users who visit the Rad Power Bikes site.
Lawsuit: Rad Power Bikes Violated Trap & Trace Law in California Invasion of Privacy Act (CIPA)
The plaintiff in the CIPA class action suit is a California consumer who visited the Rad Power Bikes website. The lawsuit alleges that the website embedded advertising-related TikTok software to deanonymize and identify visitors for marketing and surveillance purposes. This was allegedly done for the benefit of both Rad Power Bikes and social media company TikTok.
According to the complaint, the TikTok software on radpowerbikes.com “gathers device and browser information, geographic information, referral tracking, and URL tracking by running code of scripts to send user details to TikTok.” Moreover, this unauthorized collection of visitors’ personal data allegedly occurs as soon as a visitor accesses the website; visitors do not have an opportunity to consent to the gathering of their data.
TikTok “Fingerprinting”
TikTok allegedly benefits from the collection of user information on the Rad Power Bikes site by comparing the data to its own massive database. This allows TikTok to “fingerprint” and identify website visitors. Since TikTok is currently owned by the communist Chinese government, this kind of data breach could pose significant security risks to American citizens.
CIPA Lawsuit
The legal basis for the lawsuit against Rad Power Bikes is the California Trap and Trace Law, which is codified as Cal. Penal Code § 638.51 in the California Invasion of Privacy Act (CIPA).
The plaintiff in the Rad Power Bikes lawsuit is seeking several types of damages: declaratory relief, statutory damages, and attorney’s fees. Additionally, the plaintiff is seeking to certify the lawsuit as a class action applicable to anyone in California who visited the Rad Power Bikes website.
Court Denies Motion to Dismiss, Allows Trap and Trace Lawsuit Against Rad Power Bikes to Proceed
Rad Power Bikes filed a motion to dismiss before trial. The U.S. district court issued a ruling and denied the motion, which means that the consumer protection case may now go to trial.
The Defendant made three arguments in support of its motion to dismiss the case during the pre-trial stage:
- The Defendant argued that the plaintiff in the class action lacked personal jurisdiction.
- The Defendant argued that the plaintiff lacked standing to sue.
- The Defendant argued that California’s invasion of privacy statute only applies to the interception of telephone calls, not websites.
The court rejected all of these arguments, finding in favor of the plaintiff.
Personal Jurisdiction
Personal jurisdiction is a legal term that means the court has authority to hear a case involving a party with a sufficient connection to the state where the court is located. In this case, the lawsuit was filed in a federal court located in California. That means the plaintiff must show that the Defendant, Rad Power Bikes, does business in California.
In the plaintiff’s response to the motion to dismiss, he alleged that Rad Power Bikes purposefully directed its activities to California “by regularly engaging with California residents through its website and its retail stores.” Moreover, argued the plaintiff, the e-bike company also shared website visitors’ data with TikTok in California.
In its ruling on the motion to dismiss, the court found that Rad Power Bikes did, in fact, intentionally direct its activities to California by allegedly gathering personal information from California visitors to the company’s website. Additionally, the court noted that the electric bike company has a “substantial presence” in the state with four retail stores. Beyond that, Rad Power Bikes has also contracted with TikTok to send user data to California. Therefore, said the court, there are more than enough contacts between Rad Power Bikes and California to establish personal jurisdiction in the state.
Standing to Sue
The court also found that the plaintiff in the case has Article III standing to sue. That’s because the plaintiff adequately alleged an injury caused by the use of TikTok software on the Rad Power Bikes website.
Article III standing is a constitutional requirement that only individuals who have suffered an injury in fact – or a particularized injury – may bring a case in federal court.
Under the California Invasion of Privacy Act (CIPA), it is illegal for a person or business to use devices to capture “dialing, routing, addressing, or signaling information from a wire or electronic communication.” In the lawsuit against Rad Power Bikes, the plaintiff alleged that his statutory privacy rights were infringed – and that this constituted a clear violation of the CIPA. In rejecting the motion to dismiss, the U.S. district court concluded that a violation of privacy rights protected by California law “is sufficient injury for standing purposes.”
CIPA Applies to Websites
The last argument made by the Defendant in its motion to dismiss was that the California Trap and Trace Law does not apply to websites. The court strongly rejected this argument. That’s because the Trap & Trace Law, contained in the California Invasion of Privacy Act (CIPA), applies to any device that records or captures information from a wire or electronic communication. While the Defendant wants the law to apply solely to communications via telephone lines, numerous courts have found that the statute applies to website communications.
With respect to the application of California’s digital privacy laws to websites, Rad Power Bikes also made a sweepingly broad argument that the CIPA claim should be dismissed because it “effectively seeks to criminalize the Internet.” The Defendant’s contention is that most websites use tools like the TikTok software, so a finding in favor of the consumer-plaintiff would have severe implications for all consumer-facing websites. The court rejected this argument on its face. Moreover, the court noted that any questions about the scope of the CIPA should be addressed to the California Legislature, which enacted the consumer privacy law in the first place.
Contact the Los Angeles Consumer Protection Lawyers at Tauler Smith LLP
Are you a California resident? Did you visit the Rad Power Bikes website? Then you might be eligible to join a consumer class action lawsuit to recover damages for violations of the California Invasion of Privacy Act (CIPA). The Los Angeles consumer protection attorneys at Tauler Smith LLP have extensive experience representing plaintiffs in trap & trace claims and invasion of privacy lawsuits in both federal and state courts.
Call 310-590-3927 or email us today to discuss your legal options.