Justia Internet Law Opinion Summaries

Several residential property owners and a short-term rental platform challenged two ordinances enacted by the city. The first ordinance, adopted in 2023, restricts short-term rental licenses to one per residential block and distributes them by lottery. The second ordinance, adopted in 2024, requires short-term rental platforms to verify the license status of properties before facilitating transactions, and to periodically reverify this status. Plaintiffs alleged that these ordinances infringed upon their constitutional and statutory rights, including claims under the Takings Clause and Section 230 of the Communications Decency Act.The United States District Court for the Eastern District of Louisiana reviewed the plaintiffs’ claims. It dismissed all claims under Rule 12(b)(6), except for Airbnb’s Fourth Amendment challenge regarding a monthly reporting requirement in the 2024 Ordinance. The district court granted Airbnb summary judgment on that particular claim. Airbnb appealed the dismissal of its other claims.The United States Court of Appeals for the Fifth Circuit examined the case de novo. The court held that the 2023 Ordinance did not constitute a per se or regulatory taking under the Takings Clause, noting that the ordinance neither physically appropriated property nor severely impaired economic expectations. It also found the ordinance to be a reasonable zoning regulation that balanced public interests. Regarding Section 230, the Fifth Circuit ruled that neither the booking nor verification requirements of the 2024 Ordinance treated Airbnb as the publisher or speaker of third-party content, and thus were not preempted. The court affirmed the district court’s dismissal of the Takings Clause claim and the Section 230 claim, as well as the dismissal of other claims raised by the plaintiffs. View "Bodin v. New Orleans" on Justia Law

Amazon.com Services, LLC filed suit against Perplexity AI, Inc., an artificial intelligence company, asserting that Perplexity’s web browser tool, Comet, unlawfully accessed Amazon’s website in violation of the federal Computer Fraud and Abuse Act (CFAA) and California’s Comprehensive Computer Data Access and Fraud Act (CDAFA). Perplexity’s Comet browser includes an AI “Assistant” that, when activated by a user, navigates Amazon.com on the user’s behalf, sending browser screenshots to Perplexity’s servers for further instruction. Amazon claimed that this use of the Assistant, despite their explicit prohibition, amounted to unauthorized access to its servers.The United States District Court for the Northern District of California granted Amazon a preliminary injunction, finding that Amazon was likely to succeed on its claims under both the CFAA and CDAFA. The district court concluded that Perplexity, through its Assistant, accessed Amazon’s password-protected accounts without authorization, obtained private information, and caused Amazon to incur significant costs responding to this activity. The court also determined that the equitable factors supported granting the injunction, citing irreparable harm and the public interest.On appeal, the United States Court of Appeals for the Ninth Circuit vacated the preliminary injunction and remanded for further proceedings. The Ninth Circuit held that Amazon was unlikely to succeed on the merits of its claims because Perplexity did not “access” Amazon’s computers within the meaning of the CFAA or CDAFA; instead, the access was performed by the user employing the Assistant as a tool. The court found that the district court erred in its analysis of the equitable factors, which favored Perplexity, and concluded that an injunction was not warranted under these circumstances. The disposition was to vacate the injunction and remand. View "AMAZON.COM SERVICES, LLC V. PERPLEXITY AI, INC." on Justia Law

Texas enacted a law imposing new requirements on certain social media platforms, termed "digital service providers" (DSPs), to restrict minors’ access to specific categories of content. These requirements included monitoring and filtering content deemed harmful, prohibiting targeted ads to minors, preventing unlawful ads, verifying user age for access to certain material, and requiring age registration for account creation. Two groups challenged the law: one group, including technology industry organizations, contested the monitoring and filtering requirement; another group, comprised of a student coalition, individuals, and an ad agency, challenged several provisions, including the monitoring and filtering, targeted ads, unlawful ads, and age-verification requirements.In the United States District Court for the Western District of Texas, both plaintiffs sought preliminary injunctions against enforcement of the law. The district court granted injunctions in part, enjoining the monitoring and filtering requirements for both groups, and enjoining the targeted ads, unlawful ads, and age-verification requirements for the student coalition group. The court found these provisions likely unconstitutional or vague, and held that the plaintiffs had standing based on the chilling effect on their speech and listening rights. The Attorney General of Texas appealed, and the United States Court of Appeals for the Fifth Circuit consolidated the cases.The United States Court of Appeals for the Fifth Circuit held that the student coalition plaintiffs lacked standing to challenge the monitoring and filtering, targeted ads, and unlawful ads requirements, as they were not directly regulated and failed to show a substantial risk of imminent harm. Their challenge to the age-verification requirement was foreclosed by Supreme Court precedent. However, the court held that the monitoring and filtering requirement, as challenged by the industry groups, is preempted by Section 230 of the Communications Decency Act. The Fifth Circuit affirmed the district court’s injunction as to the industry group, but vacated and remanded the injunction as to the student coalition plaintiffs. View "Computer & Communications Industry Association v. Paxton" on Justia Law

A man was investigated after Google and Yahoo flagged several of his email accounts for sending and storing what appeared to be child pornography. Both companies identified the user through information like a shared recovery phone number, birthdate, and selfies associated with the accounts. Yahoo manually reviewed and confirmed the images as child pornography before reporting them to the National Center for Missing and Exploited Children (NCMEC). Google used both human review and a hash-value matching protocol, whereby a file’s unique digital fingerprint was compared against a database of previously identified illegal images. One of the files in the defendant’s account matched the hash of a known child pornography image. Law enforcement, after receiving tips from NCMEC, conducted warrantless searches and confirmed the illicit nature of the files, leading to search warrants for the defendant’s residence and devices, which yielded more incriminating evidence.The United States District Court for the Middle District of Florida denied the defendant’s motions to suppress the evidence (arguing a Fourth Amendment violation), to dismiss one of the charges on double jeopardy grounds, and to exclude certain evidence. The court also rejected his arguments concerning the admissibility of defense evidence, the sufficiency of the evidence, and the jury instructions. The defendant was convicted by a jury on both distribution and possession charges and given an enhanced sentence based on a finding of a pattern of activity involving abuse or exploitation. His subsequent motions for psychological evaluation and sentencing continuance were also denied.On appeal, the United States Court of Appeals for the Eleventh Circuit held that Google’s use of hash-value matching constituted a valid private search under the Fourth Amendment, so the government’s warrantless review did not violate the defendant’s rights. The court also held that possession and distribution of child pornography are separate offenses for double jeopardy purposes. The appellate court affirmed all district court decisions except for the application of a pattern-of-activity sentencing enhancement, which it found improper; it vacated the sentence and remanded for resentencing. View "USA v. Brillhart" on Justia Law

In response to a mass shooting in Buffalo, New York, that was planned, publicized, and broadcast via social media, the state legislature enacted the Hateful Conduct Law (HCL). This statute requires social media networks conducting business in New York to provide a clear, easily accessible mechanism for users to report "hateful conduct" and to maintain a public policy describing how the network will address such reports. "Hateful conduct" is defined as using a social media network to vilify, humiliate, or incite violence against groups based on protected characteristics. Plaintiffs, including operators of social media platforms, challenged the law before it took effect, arguing that it would compel them to speak against certain content and chill protected expression.The United States District Court for the Southern District of New York granted a preliminary injunction, finding that the HCL likely violated the First Amendment by compelling social media networks to endorse the state’s definition of hateful conduct and to publish policies about it. The court determined that the law could have a chilling effect on free speech, even though it did not require removal of the content itself. The Attorney General appealed to the United States Court of Appeals for the Second Circuit, which determined that resolution of the constitutional issues depended on the proper interpretation of the HCL under New York law. The Second Circuit certified three questions to the New York Court of Appeals concerning the scope of the statute’s requirements.The New York Court of Appeals concluded that social media networks comply with the law if their reporting mechanism and public policy do not explicitly reference or define "hateful conduct," as long as users can report such conduct and learn how reports will be addressed. The court further held that the law does not require networks to respond to reports of hateful conduct. The certified questions were answered accordingly. View "Volokh v James" on Justia Law

Guild Mortgage Company LLC and CrossCountry Mortgage LLC are direct competitors in the residential mortgage industry. Over an 18-month period, several Guild employees in the Kirkland, Washington branch, including the branch manager and other high-level staff, were allegedly recruited by CrossCountry while still employed by Guild. According to the complaints, these employees solicited their colleagues to also move to CrossCountry, diverted customers and loan applications, and accessed Guild’s computer systems to take confidential and proprietary information. The employees had signed agreements with Guild prohibiting such conduct, and Guild subsequently lost nearly its entire Kirkland branch workforce to CrossCountry.After Guild initiated arbitration against the former employees and prevailed, it filed a lawsuit in the Superior Court of San Diego County against CrossCountry. Guild’s claims included interference with economic advantage, interference with contract, violation of California’s Comprehensive Computer Data Access and Fraud Act (CCDAFA), unfair competition, and aiding and abetting tortious conduct. The Superior Court sustained CrossCountry’s demurrers, finding that the claims were preempted by the California Uniform Trade Secrets Act (CUTSA) or otherwise failed to state a cause of action, and dismissed the case without leave to amend.The Court of Appeal, Fourth Appellate District, Division One, reviewed the case. It held that Guild had adequately alleged actionable duties of loyalty and, for the branch manager, fiduciary duty, that were breached by the employees and aided by CrossCountry. The court found that the claims for interference and violation of the CCDAFA were not displaced by CUTSA because they arose from conduct beyond trade secret misappropriation. The court also held that the unfair competition claim could proceed since the other claims were viable. The Court of Appeal reversed the judgment in favor of CrossCountry and remanded for further proceedings. View "Guild Mortgage Company v. CrossCounty Mortgage" on Justia Law

The case concerns a man who sued several parties after negative posts about him appeared in a large Chicago-based Facebook group where women share experiences about local men. The posts, made in late 2023, included a woman he briefly dated recounting her unpleasant experiences, attaching a screenshot of a profane text message he sent her after their breakup. Other posts by unidentified users included supportive comments and, in one instance, a link to a news article about a criminal case involving someone with a different name and appearance. The plaintiff alleged these posts caused him reputational, economic, and emotional harm.In the United States District Court for the Northern District of Illinois, the defendants—including the former date, her parents (for allegedly allowing use of their internet connection), the group’s administrators, and Meta Platforms—moved to dismiss the complaint for failure to state a claim. The court granted the motions, finding the claims legally insufficient and dismissing the case with prejudice. The plaintiff appealed and voluntarily dismissed claims against unidentified “Jane Doe” defendants to preserve diversity jurisdiction.The United States Court of Appeals for the Seventh Circuit reviewed the district court’s dismissal. The appellate court affirmed, holding that the plaintiff failed to state plausible claims under the Illinois Right of Publicity Act because none of the defendants used his likeness for a commercial purpose. The court also found the “doxing” claim insufficient, as there were no plausible allegations of intent or recklessness regarding harm or stalking. Defamation and related claims failed because the allegedly defamatory material could be innocently interpreted or lacked special damages. The court also concluded that the appeal as to the woman and her parents was frivolous and ordered the plaintiff and his attorneys to show cause why sanctions should not be imposed for bringing a meritless appeal and for submitting briefs containing fictitious quotations and misstatements of law. The court awarded costs to other appellees and referred attorney conduct to state disciplinary authorities. View "D'Ambrosio v Meta Platforms, Inc." on Justia Law

An educational technology company was contracted by a county office of education to provide software and technology services to school districts, which involved collecting and storing various types of student data, including medical information. In 2022, the company experienced a data breach that resulted in unauthorized access to student medical records, including those of a minor plaintiff. The minor, through a guardian, filed a class action lawsuit alleging violations of both the Confidentiality of Medical Information Act (CMIA) and the Customer Records Act (CRA), claiming the company was negligent in protecting confidential medical information and failed to provide timely disclosure of the breach.The Superior Court of Ventura County granted the company’s demurrer and dismissed the case, concluding that the plaintiff failed to state a claim under either statute, as the company was not a covered entity under the CMIA or CRA and the plaintiff was not a “customer” under the CRA. The California Court of Appeal, Second Appellate District, Division Six, reversed, finding that the company fell within the scope of both statutes and that the plaintiff had alleged sufficient facts to support both claims. The appellate court also determined that the trial court erred by denying leave to amend the complaint.The Supreme Court of California reversed the appellate decision. The Court held that the plaintiff did not sufficiently allege the company was a “provider of health care” under the CMIA, nor that he was the company’s “customer” under the CRA, so no claim was stated under either statute. However, the Court clarified that under the CMIA, a breach of confidentiality occurs when medical information is exposed to a significant risk of unauthorized access or use, and actual viewing by an unauthorized party is not required. The judgment was reversed and remanded for further proceedings. View "J.M. v. Illuminate Education, Inc." on Justia Law

A defendant accessed the internet using a publicly available Wi-Fi network operated by a local business, A&W, located near his home. Access to the Wi-Fi required users to acknowledge terms of service that, among other things, stated A&W did not actively monitor the network but could cooperate with legal authorities and disclose users’ activities in response to lawful requests. After A&W’s owner and their consultant noticed suspicious activity flagged by their firewall, they informed law enforcement, which then directed A&W to monitor and log the defendant’s internet activity for approximately one year. This surveillance included tracking over 255,000 webpage visits and collecting packet capture data. Information obtained through this monitoring led to the defendant’s identification, arrest, and conviction on charges of encouraging child sexual abuse.The case was first heard in the Lane County Circuit Court, where the defendant moved to suppress evidence obtained from the year-long monitoring. The trial court found A&W’s owner and consultant acted as state agents but ruled that the defendant had no protected privacy interest in his use of the public Wi-Fi network, and denied the suppression motion. After a stipulated facts trial, the court convicted the defendant. On appeal, the Oregon Court of Appeals affirmed, holding that the defendant did not have a constitutionally protected privacy interest in his internet browsing activities on the public network under the circumstances.The Supreme Court of the State of Oregon reversed the decision of the Court of Appeals in part, and reversed the judgment of the circuit court, remanding the case for further proceedings. The Supreme Court held that under Article I, section 9, of the Oregon Constitution, a person retains a right to privacy in their internet browsing activities even when accessing the internet via a public network, and that acknowledging terms of service like those present did not eliminate that privacy right. The year-long warrantless monitoring constituted a “search,” and the State failed to justify the lack of a warrant. View "State v. Simons" on Justia Law

Several major music copyright owners, including a leading entertainment company, sought to hold an Internet service provider responsible for copyright infringement committed by its subscribers. The service provider, which serves millions of customers, was notified by a monitoring company of over 160,000 instances where its subscribers’ IP addresses were linked to alleged copyright violations such as illegal music file sharing. Although the provider had policies prohibiting infringement and took steps such as issuing warnings and suspending service, the copyright holders argued these measures were inadequate and brought suit seeking to impose liability on the provider for continuing to serve known infringers.The case was tried in the United States District Court for the Eastern District of Virginia. There, the jury found in favor of the copyright owners on both contributory and vicarious liability, and determined the provider’s infringement was willful, awarding $1 billion in statutory damages. After the District Court denied the provider’s post-trial motion, the United States Court of Appeals for the Fourth Circuit affirmed the finding of contributory liability, reasoning that supplying a service with knowledge it would be used for infringement was sufficient. The Fourth Circuit, however, reversed as to vicarious liability and remanded for a new determination of damages.The Supreme Court of the United States reviewed the case concerning contributory liability. The Court held that a service provider is contributorily liable for a user’s infringement only if it either induced the infringement or provided a service tailored for infringement. Because the provider neither encouraged infringement nor offered a service primarily designed for infringement—since Internet access has substantial lawful uses—the provider was not contributorily liable. The Supreme Court reversed the Fourth Circuit’s judgment on contributory liability and remanded the case for further proceedings. View "Cox Communications, Inc. v. Sony Music Entertainment" on Justia Law