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Investing.com -- A U.S. appeals court has revived a proposed data privacy class action against Shopify (NASDAQ:SHOP), a Canadian e-commerce company. The decision by the 9th U.S. Circuit Court of Appeals in San Francisco could make it easier for American courts to assert jurisdiction over internet-based platforms. The ruling, which came on Monday, was a 10-1 decision.
The case against Shopify was brought by Brandon Briskin, a California resident. Briskin alleges that Shopify installed tracking software, known as cookies, on his iPhone without his consent. The software was reportedly installed when Briskin purchased athletic wear from the retailer I Am Becoming. According to Briskin, Shopify used his data to create a profile it could sell to other merchants.
Shopify had argued that it should not be sued in California as it operates nationwide and did not target its conduct specifically towards that state. The Ottawa-based company suggested that Briskin could file a lawsuit in Delaware, New York, or Canada.
However, the full appeals court disagreed with Shopify’s stance. The court stated that Shopify "expressly aimed" its conduct towards California. Circuit Judge Kim McLane Wardlaw, writing for the majority, noted that Shopify deliberately reached out by knowingly installing tracking software onto unsuspecting Californians’ phones. This action was taken so that the company could later sell the data it obtained.
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