Opinion · District Court, D. Massachusetts

Belozerov v. Gannett Company, Inc.

Belozerov v. Gannett Co., No. 4:22-cv-10838, UP10200749 (District Court, D. Massachusetts Dec. 20, 2022)

Type
Opinion
Court
District Court, D. Massachusetts
Jurisdiction
Massachusetts
Date
2022-12-20
Topic
intellectual-property-and-technology

United States District Court District of Massachusetts ) Serge Belozerov on behalf of ) himself and all others similarly ) situated, ) ) Plaintiff, ) Civil Action No. ) 22-10838-NMG v. ) ) Gannett Co., Inc., ) ) Defendant. ) ) MEMORANDUM & ORDER This consumer digital privacy class action arises from alleged violations of the Video Privacy Protection Act, 18 U.S.C. § 2710 (“the VPPA”). The named plaintiff, Serge Belozerov (“plaintiff” or “Belozerov”), seeks on his own behalf and behalf of persons similarly situated, judicial relief from Gannett Co., Inc. (“defendant” or “Gannett”), the owner of the newspaper USA Today. Plaintiff alleges that Gannett unlawfully disclosed his personally identifiable information (“PII”) to Facebook. Plaintiff brings claims for damages as a result of the alleged violations of the VPPA.

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                 United States District Court                            
                   District of Massachusetts                             

                               )                                         
Serge Belozerov on behalf of    )                                         
himself and all others similarly )                                        
situated,                       )                                         
                               )                                         
         Plaintiff,            )    Civil Action No.                     
                               )    22-10838-NMG                         
         v.                    )                                         
                               )                                         
Gannett Co., Inc.,              )                                         
                               )                                         
         Defendant.            )                                         
                               )                                         

                      MEMORANDUM & ORDER                                 
    This consumer digital privacy class action arises from               
alleged violations of the Video Privacy Protection Act, 
18 U.S.C. § 2710
 (“the VPPA”).  The named plaintiff, Serge                   
Belozerov (“plaintiff” or “Belozerov”), seeks on his own behalf           
and behalf of persons similarly situated, judicial relief from            
Gannett Co., Inc. (“defendant” or “Gannett”), the owner of the            
newspaper USA Today.  Plaintiff alleges that Gannett unlawfully           
disclosed his personally identifiable information (“PII”) to              
Facebook.                                                                 
    Plaintiff brings claims for damages as a result of the               
alleged violations of the VPPA.  Pending before the Court is              
defendant’s motion to dismiss.                                            
I.   Background                                                           
    A.   The Parties                                                     

    Plaintiff Serge Belozerov resides in Worcester,                      
Massachusetts.  Defendant is an American media company                    
headquartered in McLean, Virginia that owns more than 260 daily           
publications, including USA Today.                                        
    B.   Factual History                                                 

    USA Today is one of the most circulated newspapers in the            
United States.  It has hundreds of thousands of digital                   
subscribers and offers two kinds of digital subscriptions: one            
paid and one unpaid.  Both subscriptions provide access to                
articles and video content.  In order to subscribe, users must            
provide their name and email address.                                     

    According to the complaint, Gannett collects and shares the          
personal information of visitors to its website and mobile phone          
application (“app”) with third parties through the use of                 
“cookies,” software development kits and pixels.  Specifically,           
Gannett had Facebook create a code for a tracking pixel.  The             
tracking pixel is an invisible tool that would enable Gannett to          
track what video media its users watched on the USA Today                 
website or app and report it to Facebook.  Gannett then                   
installed the tracking pixel on its website and app to provide            
targeted advertising to its users.                                        
    As alleged in the complaint, Gannett sends Facebook the              
digital subscriber’s Facebook ID and the name and Uniform                 
Resource Locator (“URL”) of the video content viewed on the USA           

Today website or app as one data point.  A Facebook ID (“FID”)            
is a unique identifier that can be used to look up an                     
individual’s Facebook user account.  Together, that information           
enables Facebook or any computer-savvy person to discern the              
identity of the digital subscriber and the specific video                 
content he or she viewed on the USA Today website or app.                 
    Although USA Today’s privacy policy informs users that               
their website activity and personal information may be shared             
with third parties for targeted advertising, Gannett purportedly          

never obtained express consent from its digital subscribers to            
share their personal information with Facebook.                           
    Plaintiff Belozerov has been a USA Today digital subscriber          
since approximately 2015 and has maintained a Facebook account            
since approximately 2008.  From 2015 to the present, plaintiff            
used his USA Today digital subscription to view videos through            
defendant’s website and app.  Belozerov alleges that he never             
consented, agreed, authorized or otherwise permitted defendant            
to disclose his personal information to Facebook.  Moreover, he           

contends that he was not given notice that defendant discloses            
that information nor any means of opting out of such                      
disclosures.  Nonetheless, plaintiff’s personal information was           
disclosed without his express written consent to Facebook                 
pursuant to the process described above.                                  

     C.   Procedural History                                              
     On June 1, 2022, plaintiff filed a class action complaint            
in this Court alleging violations of the VPPA.  Belozerov seeks           
(1) a determination that this action may be maintained as a               
class action, (2) an order declaring that defendant’s conduct             
violates the VPPA, (3) payment of $2,500 from defendant to                

plaintiff and each class member pursuant to 
18 U.S.C. § 2710
(c)(2)(A), (4) punitive damages, (5) prejudgment interest           
on all amounts awarded, (6) an order of restitution and other             
forms of equitable monetary relief, (7) injunctive relief and             
(8) attorneys’ fees.                                                      
     Defendant has moved to dismiss the complaint in a timely             
fashion.                                                                  
II.   Motion to Dismiss                                                    

     A.   Legal Standard                                                  
     To survive a motion under Fed. R. Civ. P. 12(b)(6), the              
subject pleading must contain sufficient factual matter to state          
a claim for relief that is actionable as a matter of law and              

“plausible on its face.” Ashcroft v. Iqbal, 
556 U.S. 662, 678
             
(2009) (quoting Bell Atl. Corp. v. Twombly, 
550 U.S. 544, 570
             
(2007)).  A claim is facially plausible if, after accepting as            
true all non-conclusory factual allegations, the court can draw           
the reasonable inference that the defendant is liable for the             

misconduct alleged. Ocasio-Hernandez v. Fortuno-Burset, 
640 F.3d 1, 12
 (1st Cir. 2011).                                                    
    When rendering that determination, a court may not look              
beyond the facts alleged in the complaint, documents                      
incorporated by reference therein and facts susceptible to                
judicial notice. Haley v. City of Boston, 
657 F.3d 39, 46
 (1st            
Cir. 2011).  A court also may not disregard properly pled                 
factual allegations even if actual proof of those facts is                
improbable. Ocasio-Hernandez, 
640 F.3d at 12
.  Rather, the                

necessary inquiry focuses on the reasonableness of the inference          
of liability that the plaintiff is asking the court to draw. 
Id. at 13
.  The assessment is holistic:                                       
    the complaint should be read as a whole, not parsed                  
    piece by piece to determine whether each allegation,                 
    in isolation, is plausible[.]                                        
Hernandez-Cuevas v. Taylor, 
723 F.3d 91, 103
 (1st Cir. 2013),             
quoting Ocasio-Hernandez, 
640 F.3d at 14
.                                 
    B.   Video Privacy Protection Act, 
18 U.S.C. § 2710
                  
    The VPPA was enacted in 1988 in response to a profile on             
Judge Robert H. Bork’s video rental history by a Washington               
newspaper published during his Supreme Court confirmation                 
hearings. S. Rep. No. 100–599, at 5 (1988).  The profile listed           
146 films that his family had rented from a video store. 
Id.
              
Members of the Senate Judiciary Committee denounced the                   

disclosure and introduced the bill to protect the right to                
privacy amidst the growth of advanced information technology.             
Id. at 5-8
.                                                               
    The VPPA generally prohibits the knowing disclosure of a             
customer’s video rental or sale records without informed written          
consent of the customer.  The statute provides a civil damages            
remedy against those who violate the statute, stating:                    

    [a] video tape service provider who knowingly                        
    discloses, to any person, personally identifiable                    
    information concerning any consumer of such provider                 
    shall be liable to the aggrieved person . . .                        
18 U.S.C. § 2710
(b)(1).  The statute defines a “video tape                
service provider” as                                                      
    any person, engaged in the business . . . of rental,                 
    sale, or delivery of prerecorded video cassette tapes                
    or similar audio visual materials[.]                                 
Id.
 § 2710(a)(4). A consumer is “any renter, purchaser, or                
subscriber of goods or services from a video tape services                
provider.” Id. § 2710(a)(1).  The statute states that                     
“personally identifiable information,” or PII,                            
    includes information which identifies a person as                    
    having requested or obtained specific video materials                
    or services from a video tape service provider[.]                    
Id. § 2710(a)(3).                                                         
    C.   Application                                                     

    Defendant moves to dismiss plaintiff’s complaint on three            
grounds: (1) that it is a news provider and does not meet the             
statutory definition of a “video tape services provider,” (2)             
that plaintiff does not plausibly allege that Gannett disclosed           
PII and (3) that even if it did disclose PII, it did not do so            
knowingly.  The Court will address each argument in turn.                 

         1.   Video Tape Service Provider                                
    Gannett asserts that Belozerov is not entitled to relief             
under the VPPA because he did not subscribe to “goods or                  
services from a video tape services provider.” 
18 U.S.C. § 2710
(a)(1).  According to Gannett, because Belozerov did not            
pay to access USA Today’s content, he cannot be a “subscriber of          
goods or services.” See 
id.
                                               

    The First Circuit has already struck down a nearly                   
identical argument made by Gannett six years ago, “decline[ing]           
to interpret the [VPPA] as incorporating monetary payment as a            
necessary element.” Yershov v. Gannett Satellite Information              
Network, Inc., 
820 F.3d 482, 488
 (1st Cir. 2016).  Thus,                  
plaintiff has sufficiently pled that he was a subscriber of USA           
Today.                                                                    
    Defendant next maintains that USA Today is a news provider           
and thus not primarily “engaged in the business . . . of rental,          
sale, or delivery of prerecorded video cassette tapes or similar          

audio visual materials.” 
18 U.S.C. § 2710
(a)(4).  Plaintiff               
responds that Gannett is in fact a video tape services provider           
as defined by the VPPA because it is engaged in the business of           
delivering computer files containing video content, which are             
“similar audio visual materials” to prerecorded cassette tapes.           
Id.
  Moreover, contrary to defendant’s argument, plaintiff                
stresses that the VPPA is not limited to entities that are                
primarily engaged in the business of providing video content,             
nor is it limited to audio visual materials of a certain                  
content, medium or duration.                                              

    Again, the First Circuit decision in Yershov provides                
guidance on this issue. 
820 F.3d at 489-90
.  Although the First           
Circuit did not explicitly analyze whether Gannett was a “video           
tape service provider” because Gannett did not challenge that             
element of the claim, it ultimately held that the plaintiff               
plausibly pled a case where the VPPA’s prohibition on disclosure          
applied. 
Id.
 at 485 n.2, 489-90.                                          
    In their pleadings, both parties characterize the case at            

bar and Yershov as involving “the same issues.”  In fact both             
cases involve consumers’ lawsuits against USA Today for                   
violations of the VPPA.  Therefore, this Court will follow                
controlling First Circuit precedent and find that plaintiff has           
plausibly pled that he subscribed to goods and services from a            

video tape services provider under the VPPA. 
Id. at 489-90
.               
         2.   Disclosure of PII                                          
    Rather than disputing whether the information that Gannett           
collected from plaintiff constitutes PII, defendant argues that           
it did not actually “disclose” any PII to Facebook.  In support           
of its argument, defendant attempts to introduce contradictory            

facts stating that Facebook, not Gannett, collects such                   
information from the consumer.                                            
    The Court notes that, as alleged in the complaint, when a            
user watches video media on the USA Today website, USA Today              
sends Facebook certain information, including the video content           
name, its URL and the user’s Facebook 
ID.
                                 

    A Facebook ID meets the broad definition of PII in this              
circuit.  In Yershov, the First Circuit analyzed the language of          
the statute to conclude that                                              
    PII is not limited to information that explicitly                    
    names a person [and] many types of information other                 
    than a name can easily identify a person.                            
Yershov, 
820 F.3d at 486
.  A Facebook ID is a unique identifier           
that allows anyone to discover the user’s identity.                       
Furthermore, courts in other circuits have explicitly held that           
a Facebook ID constitutes PII. See Czarnionka v. Epoch Times              
Ass’n, Inc., No. 22 CIV. 6348 (AKH), 
2022 WL 17069810
, at *3              
(S.D.N.Y. Nov. 17, 2022) (“The FID itself represents a                    

particular individual.”); Lebakken v. WebMD LLC, No. 1:22-cv-             
00644-TWT, 
2022 WL 16716151
 (N.D. Ga. Nov. 4, 2022)                       
(“[Plaintiff] adequately alleged that [defendant] disclosed her           
Facebook ID and email address in connection with her video                
viewing information to Facebook and that the disclosure of such           
information constituted a disclosure of PII.”).                           
    As to which entity collects the information and is                   
responsible for the disclosure of PII, the complaint alleges              
that defendant programmed the USA Today website to include a              

Facebook tracking pixel.  According to the complaint, the                 
Facebook tracking pixel is an “invisible” tool that tracks                
users’ actions on Facebook advertisers’ websites and reports              
that information to Facebook.  Facebook then uses that                    
information to show the user targeted ads.                                
    In its motion to dismiss, Gannett contradicts the alleged            
facts, contending that Facebook, not defendant, placed the                
tracking pixel on the USA Today website.  Such a factual dispute          
cannot be resolved on a motion to dismiss at which stage the              

Court must treat all non-conclusory factual allegations in the            
complaint as true. Ocasio-Hernandez, 
640 F.3d at 12
.  Plaintiff           
alleges throughout the complaint that defendant inserted the              
code into the USA Today website to transmit users’ information            
to Facebook.  Accepting the factual allegations as true and               

drawing reasonable inferences in the plaintiff’s favor, the               
Court finds that it is plausible Gannett disclosed PII under the          
VPPA. See 
id. at 10-11
.                                                   
         3.   “Knowing” Disclosure of PII                                
    Finally, defendant argues that even if plaintiff did                 
adequately allege that Gannett disclosed PII, he did not                  

sufficiently allege that Gannett “knowingly” disclosed PII as             
required by the VPPA. 
18 U.S.C. § 2710
(b)(1).  Essentially,               
defendant asserts that plaintiff did not allege facts that                
Gannett ever knew that users’ information was transmitted to              
Facebook.                                                                 
    Such assertions are, however, plainly contradicted by the            
complaint which alleges that                                              

    defendant chose, programmed, and intended for Facebook               
    to receive the video content name, its URL, and, most                
    notably, the digital subscriber’s FID [and that]                     
    defendant knew that the Facebook pixel disclosed                     
    Personal Viewing Information to Facebook.                            
As discussed above, at the motion to dismiss stage, the Court             
accepts the factual allegations in the complaint as true.                 
Ocasio-Hernandez, 
640 F.3d at 10
.  Therefore, the Court finds             
that plaintiff has plausibly pled that Gannett’s disclosure of            
users’ PII was made knowingly.                                            

    In conclusion, at this early juncture plaintiff plausibly            
pleads a violation of the VPPA’s prohibition on disclosure of             
PII. See Yershov, 
820 F.3d at 489-90
 (“We need simply hold, and           
do hold, only that the transaction described in the complaint——           
whereby [plaintiff] used the mobile device application that               
Gannett provided to him, which gave Gannett . . . his device              
identifier, and the titles of the videos he viewed in return for          
access to Gannett’s video content——plausibly pleads a case that           
the VPPA's prohibition on disclosure applies.”).                          

                             ORDER                                       
    For the foregoing reasons, defendant’s motion to dismiss             
(Docket No. 21) is DENIED.                                                


So ordered.                                                               

                                  /s/ Nathaniel M. Gorton                
                                  Nathaniel M. Gorton                    
                                  United States District Judge           


Dated December 20, 2022