9th Circuit Court of Appeals reverses order requiring arbitration

Posted on: September 19th, 2017 by Keith Dubanevich

The 9th U.S. Circuit Court of Appeals recently reversed a District Court decision that forced Verizon customers into an arbitration against a different company, Turn, Inc. The Court found that the claims did not arise out of the Verizon contract which contained an arbitration clause.

Instead, the consumers were asserting privacy claims against a 3rd party marketing firm that allegedly tracked users with “supercookies.” Turn had allegedly teamed with Verizon to use the telecom company’s device specific unique identifier header to allow online advertisers to deliver unique ads to subscribers based on their mobile data usage. The plaintiffs assert that Turn violated the users privacy because the supercookies secretly monitor their behavior and users cannot detect, delete or block the supercookies.

Turn previously reached an agreement to resolve claims brought by the Federal Trade Commission by overhauling its privacy practices.

The case is Anthony Henson et al. v. U.S. District Court, case number 16-71818 (9th Cir. September 5, 2017).