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United States District Court for the Central District of California
July 15, 2021, Decided; July 15, 2021, Filed
Case No. 5:20-cv-02439-JWH-SHKx
[*1076] ORDER GRANTING-IN-PART AND DENYING-IN-PART DEFENDANTS' MOTION TO DISMISS [ECF No. 23]
Before the Court is the motion of Defendants Lululemon USA, Inc. and Quantum [*1077] Metric, Inc. to dismiss, pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure.1 The Court finds this matter appropriate for resolution without a hearing. See Fed. R. Civ. P. 78; L.R. 7-15. After considering the papers filed in support and in opposition,2 the Court orders that the Motion is GRANTED IN PART and DENIED IN PART, as set forth herein.
Yoon alleges the following facts in her Amended [**2] Complaint, which the Court assumes to be true for the purposes of the instant Motion. See, e.g., Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337-38 (9th Cir. 1996) (on motion to dismiss for failure to state a claim, "[a] allegations of material fact are taken as true and construed in the light most favorable to the nonmoving party").
Yoon is a resident of Corona, California.3 Lululemon is a Nevada corporation that does business in California, including through a website; Quantum Metric is a Delaware corporation.4 Yoon visited and made a purchase from Lululemon's website in April 2020.5
Lululemon uses Quantum Metric software called "Session Replay" to captures a customer's interactions with Lululemon's webpage, including mouse movements, clicks, keystrokes, scrolls, and pageviews.6 Quantum Metric markets this software as allowing a company "'to pull up any user who had visited [a] website and watch their journey as if [the company] was standing over their shoulder'" and "'[s]ee actual customer interactions.'" Quantum Metric has obtained patent protection for its Session Replay technology, which Quantum Metric touts as giving companies "'real-time visibility into all behavioral, technical, and segment data.'"7 The monitoring that Quantum Metric's technology [**3] provides extends beyond the computer "cookies" with which ordinary consumers are familiar.8 One 2017 study found that products similar to Session Replay collected users' passwords and credit card numbers.9 Lululemon is aware of this monitoring.10
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549 F. Supp. 3d 1073 *; 2021 U.S. Dist. LEXIS 154783 **; 2021 WL 3615907
MARY YOON, individually and on behalf of all others similarly situated, Plaintiff, v. LULULEMON USA, INC. and QUANTUM METRIC, INC., Defendants.
Lululemon, website, privacy, Wiretap, users, intercepted, claim for relief, message, communications, conversation, alleges, private right of action, manufactures, contents, privacy interest, judicial notice, advertisement, technology, collected, assembly, captured, Patents, courts, motion to dismiss, intentionally, documents, possessed, tracking, parties, email