CARA JONES, ET AL V. GOOGLE LLC, ET AL, No. 21-16281 (9th Cir. 2023)
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Google owns YouTube, an online video-sharing platform that is popular among children. Google’s targeted advertising is aided by technology that delivers curated, customized advertising based on information about specific users. Google’s technology depends partly on what Federal Trade Commission (“FTC”) regulations call “persistent identifiers,” information “that can be used to recognize a user over time and across different Web sites or online services.” In 2013, the FTC adopted regulations under COPPA that barred the collection of children’s “persistent identifiers” without parental consent. The plaintiff class alleged that Google used persistent identifiers to collect data and track their online behavior surreptitiously and without their consent. They pleaded only state law causes of action but also alleged that Google’s activities violated COPPA. The district court held that the “core allegations” in the third amended complaint were preempted by COPPA.
The Ninth Circuit reversed the district court’s dismissal of the third amended complaint on preemption grounds. The court remanded so that the district court can consider, in the first instance, the alternative arguments for dismissal to the extent those arguments were properly preserved. The panel held that state laws that supplement, or require the same thing as federal law, do not stand as an obstacle to Congress’s objectives, and are not “inconsistent.” The panel was not persuaded that the insertion of “treatment” in the preemption clause evinced clear congressional intent to create an exclusive remedial scheme for enforcement of COPPA requirements. The panel concluded that COPPA’s preemption clause does not bar state-law causes of action that are parallel to or proscribe the same conduct forbidden by COPPA.
Court Description: Preemption / Children’s Online Privacy Protection Act. The panel filed (1) an order denying a petition for panel rehearing, denying a petition for rehearing en banc, and amending the opinion filed on December 28, 2022; and (2) an amended opinion reversing the district court’s dismissal, on preemption grounds, of a third amended complaint in an action brought by a class of children, appearing through their guardians ad litem, against Google LLC and others, alleging that Google used persistent identifiers to collect data and track their online behavior surreptitiously and without their consent in violation of the Children’s Online Privacy Protection Act (“COPPA”).
Google owns YouTube, an online video-sharing platform that is popular among children. Google’s targeted advertising is aided by technology that delivers curated, customized advertising based on information about specific users. Google’s technology depends partly on what Federal Trade Commission (“FTC”) regulations call “persistent identifiers,” information “that can be used to recognize a user over time and across different Web sites or online services.” 16 C.F.R. § 312.2. In 2013, the FTC adopted regulations under COPPA that barred the collection of children’s “persistent identifiers” without parental consent.
The plaintiff class alleged that Google used persistent identifiers to collect data and track their online behavior surreptitiously and without their consent. They pleaded only state law causes of action, but also alleged that Google’s activities violated COPPA. The district court held that the “core allegations” in the third amended complaint were preempted by COPPA.
The panel considered the question of whether COPPA preempts state law claims based on underlying conduct that also violates COPPA’s regulations. Express preemption is a question of statutory construction. COPPA’s preemption clause provides: “[n]o State or local government may impose any liability . . . that is inconsistent with the treatment of those activities or actions under this section.” 15 U.S.C.
§ 6502(d). The panel held that state laws that supplement, or require the same thing, as federal law, do not stand as an obstacle to Congress’s objectives, and are not “inconsistent.” The panel was not persuaded that the insertion of “treatment” in the preemption clause evinced clear congressional intent to create an exclusive remedial scheme for enforcement of COPPA requirements. The panel concluded that COPPA’s preemption clause does not bar state-law causes of action that are parallel to, or proscribe the same conduct forbidden by, COPPA.
Even if express preemption is not applicable, preemptive intent may be inferred through conflict preemption principles. The panel held that although express and conflict preemption are analytically distinct inquiries, they effectively collapse into one when the preemption clause uses the term “inconsistent.” For the same reasons that the panel concluded there was no express preemption, the panel concluded that conflict preemption does not bar the plaintiffs’ claims.
This opinion or order relates to an opinion or order originally issued on December 28, 2022.
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