A split Ninth Circuit en banc panel Monday revived a proposed class action alleging Shopify violates privacy rights by embedding payment-processing code on merchant websites that surreptitiously tracks consumers' location and collects personal data. https://t.co/55YDhSM8Fs https://t.co/664fhJIRov
Shopify allegedly installed tracking software on customers' phones without their consent. The company will now face a massive lawsuit after a federal court ruled in a 10-1 decision that the company can be sued in California over this data collection scheme.
$SHOP (+1.6% pre) Shopify must face data privacy lawsuit in US https://t.co/RPc6J4gWju
A U.S. federal appeals court has revived a proposed class action lawsuit against Shopify, allowing the company to be sued in California over allegations of unauthorized data tracking. The Ninth Circuit en banc panel ruled 10-1 that Shopify installed tracking software on customers' phones without their consent by embedding payment-processing code on merchant websites, which allegedly tracked consumers' locations and collected personal data. This decision reverses an earlier ruling that had dismissed the case on jurisdictional grounds and could set a precedent making it easier for American courts to assert jurisdiction over internet-based platforms. Following the ruling, Shopify's shares rose 1.6% in pre-market trading.