DiTirro v. Facebook, Inc.

Filing 1

COMPLAINT against Facebook, Inc. ( Filing fee $ 400, receipt number 0971-8283745.). Filed byAnthony DiTirro. (Attachments: # 1 Civil Cover Sheet)(Friedman, Todd) (Filed on 1/9/2014)

Download PDF
1 ANTHONY J. ORSHANSKY, Cal. Bar No.199364 anthony@counselonegroup.com 2 JUSTIN KACHADOORIAN, Cal. Bar No. 260356 justin@counselonegroup.com 3 COUNSELONE, P.C. 9301 Wilshire Boulevard, Suite 650 4 Beverly Hills, California 90210 Telephone: (310) 277-9945 5 Facsimile: (424) 277-3727 6 TODD M. FRIEDMAN, Cal. Bar No. 216752 tfriedman@attorneysforconsumers.com 7 NICHOLAS J. BONTRAGER, Cal. Bar No. 252114 8 nbontrager@attorneysforconsumers.com 9 10 11 12 LAW OFFICES OF TODD M. FRIEDMAN, P.C. 369 S. Doheny Drive, Suite 415 Beverly Hills, California 90211 Telephone: (877) 206-4741 Facsimile: (866) 633-0228 [Other Counsel on signature page] Attorneys for Anthony Ditirro, on behalf of himself and others similarly situated 13 14 15 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION 16 ANTHONY DITIRRO, on behalf of himself 17 18 19 20 21 22 23 24 25 26 27 28 ) Case No. ) CLASS ACTION COMPLAINT FOR: ) Plaintiffs, ) 1. VIOLATION OF CALIFORNIA ) CIVIL CODE § 3344 v. ) 2. MISAPPROPRIATION OF ) LIKENESS FACEBOOK, INC., ) 3. FALSE LIGHT ) 4. VIOLATION OF BUSINESS AND PROFESSIONS CODE § 17200 et seq. Defendant. ) 5. FALSE ADVERTISING, CAL. BUS. ) & PROF. CODE § 17500 ) 6. VIOLATIONS OF THE CONSUMER ) LEGAL REMEDIES ACT (CAL. ) CIVIL CODE §§ 1750 et seq.) ) 7. NEGLIGENCE ) 8. BREACH OF CONTRACT ) 9. BREACH OF COVENANT OF ) GOOD FAITH AND FAIR DEALING ) 10. RESTITUTION BASED ON QUASICONTRACT / UNJUST ) ENRICHMENT ______________________________________ ) DEMAND FOR JURY TRIAL and all others similarly situated, CLASS ACTION COMPLAINT 1 2 INTRODUCTION 1. ANTHONY DITIRRO (“PLAINTIFF”) brings this class action for damages, 3 injunctive relief, and any other available legal or equitable remedies, resulting from the illegal 4 actions of FACEBOOK, INC. (“DEFENDANT”) and its related entities, subsidiaries and agents, 5 in unlawfully using its customers’ likenesses and Facebook profiles to create a false impression 6 that its customers are promoting a particular company or product without said customer’s 7 knowledge or consent. PLAINTIFF alleges as follows upon personal knowledge as to himself and 8 his own acts and experiences, and, as to all other matters, upon information and belief, including 9 investigation conducted by his attorneys. 10 11 JURISDICTION AND VENUE 2. Jurisdiction is proper under 28 U.S.C. § 1332(d)(2) because the claims of the 12 individual class members, when aggregated among a proposed class numbering in the millions, 13 exceeds the $5,000,000 threshold for federal court jurisdiction. Further, PLAINTIFF alleges a 14 national class, which will result in at least one class member belonging to a different state than that 15 of DEFENDANT. Therefore, both elements of diversity jurisdiction under the Class Action 16 Fairness Act of 2005 (“CAFA”) are present, and this Court has jurisdiction. 17 3. Venue is proper in the United States District Court for the Northern District of 18 California pursuant to 28 U.S.C. § 1391(b) (1) and 1441(a) because DEFENDANT is 19 headquartered in San Mateo. 20 21 PARTIES 4. PLAINTIFF is, and at all times mentioned herein was, an individual citizen and 22 resident of the State of Colorado. 23 5. PLAINTIFF is informed and believes, and thereon alleges, that DEFENDANT is, 24 and at all times mentioned herein was, a corporation, with its principal place of business in the 25 City of Menlo Park, State of California. 26 6. PLAINTIFF is informed and believes, and thereon alleges, that at all times 27 relevant, DEFENDANT conducted business in the State of California. 28 1 CLASS ACTION COMPLAINT 1 2 FACTUAL ALLEGATIONS 7. Founded in 2004, DEFENDANT is the world’s largest social media networking 3 website with over a billion active users as of September of 2012. 4 8. Users must register to be able to use the website, after which they have the option 5 to create a personal profile, add other users as “Facebook Friends,” exchange messages and 6 receive automatic updates about their Facebook Friends when one of them updates his or her 7 profile. 8 9. A user’s personal profile can consist of digital photographs, a wall for other users 9 to write on, a list of interests, an educational history, as well as other personal information. 10 10. Users can also create or join interest groups and “Like” pages, many of which are 11 maintained by well-known products and companies as a means of advertising. 12 11. The Facebook “Like Button” is a very popular feature of DEFENDANT’S website, 13 allowing users to express their appreciation of content such as other user’s Facebook status, 14 comments, and posted photos. 15 12. Facebook users also have the ability to utilize their “Like Button” to endorse 16 various companies’ products, services and advertisements. 17 13. A single click on a like button by a particular Facebook user will advertise to 18 thousands of others that a particular user backs or likes a particular company’s product or service; 19 a gigantic source of advertising. 20 14. DEFENDANT will routinely post a sponsored company’s advertisement on a 21 user’s timeline, indicating to said user that one of his or her Facebook friends “Likes” that 22 particular company, giving the impression of endorsement. 23 15. According to a recent Internet article, The Facebook “Like Button” is seen more 24 than 22 billion times per day and is embedded in over 7.5 million websites. 25 16. PLAINTIFF has been a registered Facebook user since 2009. Before signing up for 26 Facebook and continually thereafter, PLAINTIFF read Facebook’s terms and conditions and other 27 information provided by DEFENDANT regarding privacy and the dissemination and use of 28 2 CLASS ACTION COMPLAINT 1 personal information and content posted on Facebook, and he has continually followed statements 2 in the media by DEFENDANT’S representatives and officials regarding these issues. 3 17. PLAINTIFF and other Class members (defined below) understood that by signing 4 up for Facebook they would own and control their personal information and content. Indeed 5 DEFENDANT not only permitted but required PLAINTIFF and other Class members to provide 6 accurate and truthful information. For PLAINTIFF and other Class members, the value of 7 DEFENDANT’S service consisted in the conveyance truthfully and accurately of this information. 8 18. Furthermore, PLAINTIFF and other Class members understood not only from the 9 expressed purpose of Facebook (i.e., to convey correct and truthful information), but also from the 10 terms and conditions that DEFENDANT would use information about PLAINTIFF and Class 11 members, subject to their privacy and application settings, that they actually posted and that 12 advertising would use the information and content they posted or provided, not information they 13 did not post and that was inaccurate or untrue. 14 19. Thus PLAINTIFF, Class members, and reasonable consumers would understand 15 from DEFENDANT’S mission and policies that it would not disseminate false, incorrect, or 16 untruthful information, and specifically would not falsely attribute sponsorship, endorsement, 17 preference, or approval in the form of “Likes” to them when they had not in fact “Liked” a 18 product, service, or company. 19 20. On or about November of 2013, PLAINTIFF received notification from one of his 20 Facebook friends that PLAINTIFF was featured on Facebook, “Liking” USA TODAY newspaper 21 in a Facebook sponsored advertisement. (Attached as Exhibit “A” to this Complaint is a 22 screenshot of Facebook showing PLAINTIFF “liking” USA TODAY). 23 21. Although PLAINTIFF has nothing negative to say about USA TODAY 24 newspapers, PLAINTIFF is not an avid reader of USA TODAY, nor does PLAINTIFF endorse 25 the newspaper. 26 22. PLAINTIFF has never visited USA TODAY’S website. 27 23. PLAINTIFF never clicked his “Like Button” on USA TODAY’s website, USA 28 TODAY’S Facebook page, nor any Facebook content or advertisement featuring USA TODAY. 3 CLASS ACTION COMPLAINT 1 24. DEFENDANT knowingly used PLAINTIFF’S likeness and Facebook profile to 2 advertise to the general public that PLAINTIFF endorsed USA TODAY without PLAINTIFF’S 3 permission. 4 25. PLAINTIFF was unaware that DEFENDANT had utilized PLAINTIFF’S 5 Facebook profile to advertise for USA TODAY until PLAINTIFF was notified of the same by one 6 of his Facebook Friends. 7 26. DEFENDANT never contacted PLAINTIFF to ask permission to use 8 PLAINTIFF’S Facebook profile to sponsor or “like” USA TODAY. 9 27. DEFENDANT intentionally manipulated PLAINTIFF’S Facebook profile to give 10 the general public, and specifically PLAINTIFF’S facebook friends, the false impression that 11 PLAINTIFF liked or endorsed USA TODAY. 12 28. PLAINTIFF and the members of the Class have all suffered irreparable harm and 13 damages as a result of DEFENDANT’s unlawful and wrongful conduct heretofore described. 14 15 CLASS ACTION ALLEGATIONS 29. PLAINTIFF brings this action on behalf of himself and on behalf of all others 16 similarly situated (“the Class”). 17 PLAINTIFF represents, and is a member of, the Class, consisting of: 18 All persons within the United States whose Facebook profile was manipulated by DEFENDANT to give the impression to other Facebook users, including but not limited to their friends, family and acquaintances, that said person liked, endorsed and/or used a product/and or company that advertised on Facebook without the consent of said person to use their likeness and/or private data. 19 20 21 22 30. DEFENDANT and its employees or agents are excluded from the Class. 23 PLAINTIFF does not know the number of members in the Class, but believes the Class members 24 number in millions, if not more. Thus, this matter should be certified as a Class action to assist in 25 the expeditious litigation of this matter. 26 31. PLAINTIFF reserves the right to amend or modify the class description with 27 greater particularity or further division into subclasses or limitation to particular issues. 28 4 CLASS ACTION COMPLAINT 1 32. The joinder of the Class members is impractical and the disposition of their claims 2 in the Class action will provide substantial benefits both to the parties and to the court. 3 DEFENDANT has more than one hundred million current subscribers. The Class can be 4 identified through DEFENDANT’s records or DEFENDANT’s agents’ records. 5 33. There is a well-defined community of interest in the questions of law and fact 6 involved affecting the parties to be represented. The questions of law and fact to the Class 7 predominate over questions which may affect individual Class members, including inter alia: 8 a. Whether DEFENDANT violated California Civil Code § 3344 by representing 9 that Class members “liked” products, companies, and/or services when they had 10 not in fact done so; 11 b. Whether DEFENDANT misappropriated Class members’ likenesses by 12 representing in Facebook advertisements that Class members “liked” products, 13 services and/or companies when they had not in fact done so; 14 c. Whether DEFENDANT portrayed members of the Class in a false light by 15 inaccurately representing their preferences and endorsements for particular 16 products and companies; 17 18 19 20 d. Whether DEFENDANT’S conduct and omissions as heretofore alleged are false, misleading, or reasonably likely to deceive its customers; e. Whether DEFENDANT failed to disclose material facts relating to the character and quality of its advertising practices; 21 f. Whether California law applies to the proposed Class; 22 g. Whether DEFENDANT’S conducted described herein constitutes a breach of 23 contract; 24 h. Whether DEFENDANT’S conduct described herein was negligent; 25 i. Whether DEFENDANT owed a duty to customers to exercise reasonable care 26 to accurately represent the preferences and/or endorsements of members of the 27 Class; 28 5 CLASS ACTION COMPLAINT 1 j. Whether DEFENDANT breached its duty to exercise reasonable care in failing 2 to represent accurately the preferences and/or endorsements of Class members 3 for particular products, services, and companies; 4 k. Whether DEFENDANT’S conduct described herein constitutes a breach of the 5 covenant of good faith and fair dealing; 6 l. Whether DEFENDANT was unjustly enriched as a result of the conduct alleged 7 herein; 8 m. Whether PLAINTIFF and the members of the Class were damaged by 9 DEFENDANT’S conduct, and the extent of damages; 10 n. Whether DEFENDANT has engaged in unlawful, unfair, or fraudulent business 11 practices in violation of Cal. Bus. & Prof. Code § 17200 et seq.; and 12 o. Whether DEFENDANT should be enjoined from engaging in such conduct in 13 14 the future. 34. As a person whose personal information and likeness was compromised as a result 15 of DEFENDANT’S wrongful conduct as herein alleged, PLAINTIFF is asserting claims that are 16 typical of the Class. PLAINTIFF will fairly and adequately represent and protect the interests of 17 the Class in that PLAINTIFF has no interests antagonistic to any member of the Class. 18 35. PLAINTIFF and the members of the Class have all suffered irreparable harm as a 19 result of the DEFENDANT’S unlawful and wrongful conduct. Absent a class action, the Class 20 will continue to face the potential for irreparable harm. In addition, these violations of law will be 21 allowed to proceed without remedy and DEFENDANT will likely continue such illegal conduct. 22 Because of the size of the individual Class member’s claims, few, if any, Class members could 23 afford to seek legal redress for the wrongs complained of herein. 24 36. PLAINTIFF has retained counsel experienced in handling class action lawsuits. 25 37. A class action is a superior method for the fair and efficient adjudication of this 26 controversy. The interest of Class members in individually controlling the prosecution of separate 27 claims against DEFENDANT is small. Management of these claims is likely to present 28 significantly fewer difficulties than those presented in many class claims. Litigating this case as a 6 CLASS ACTION COMPLAINT 1 class action will reduce the possibility of repetitious litigation relating to DEFENDANT’S 2 conduct. 3 38. DEFENDANT has acted on grounds generally applicable to the Class, thereby 4 making appropriate final injunctive relief and corresponding declaratory relief with respect to the 5 Class as a whole. 6 FIRST CAUSE OF ACTION 7 (UNAUTHORIZED MISAPPROPRIATION AND COMMERCIAL USE OF NAME, 8 VOICE AND PHOTOGRAPHS – CIV. CODE § 3344) 9 39. PLAINTIFF re-alleges the foregoing paragraphs of this complaint and incorporates 10 the same by reference as though set forth at length herein. 11 40. Continuing through the present, DEFENDANT knowingly used and is continuing 12 to use PLAINTIFF’S and other Class members’ name and Facebook photos for DEFENDANT’S 13 advantage, all without their prior consent. 14 41. As a direct and proximate result of said acts by DEFENDANT, PLAINTIFF and 15 other Class members have suffered damages, in an amount equal to the greater of seven hundred 16 fifty dollars ($750) or the actual damages suffered by them as a result of the unauthorized use, and 17 any profits from the unauthorized use that are attributable to the use and are not taken into account 18 in computing the actual damages. 19 42. The Facebook advertisements depicting PLAINTIFF’S likeness and the likeness of 20 other Class members were not authorized to be used in any fashion by DEFENDANT because 21 they were obtained without their consent; moreover, said advertisements were at no time to be 22 distributed to the public. 23 43. In doing the acts alleged herein, DEFENDANT by and through its agents and 24 representatives acted with negligence, oppression, fraud, and malice, engaging in despicable 25 conduct carried on by DEFENDANT with a willful and conscious disregard of PLAINTIFF’S and 26 other Class members’ rights and that has subjected PLAINTIFF and other putative Class members 27 to cruel and unjust hardship and humiliation in conscious disregard of their rights, in the process 28 making intentional misrepresentations, engaging in deceit and concealing material facts known to 7 CLASS ACTION COMPLAINT 1 DEFENDANT with the intention on the part of DEFENDANT to thereby deprive PLAINTIFF 2 and Class members of their property rights, legal rights and otherwise to cause them injury, as 3 described herein above. 4 44. Under authority of California Civil Code § 3344, PLAINTIFF and other Class 5 members, upon prevailing upon this claim, shall be entitled to an award of their reasonable 6 attorneys’ fees and costs of suit incurred herein, as against DEFENDANT, as well as actual 7 statutory damages, profits gained and punitive damages. 8 45. DEFENDANT will continue using the misappropriated likenesses of PLAINTIFF 9 and other Class members for purposes of promoting DEFENDANT’S websites, online presence, 10 advertising clients of DEFENDANT, and for their overall advantage, including, but not limited to 11 commercial gain and profit. Unless and until enjoined and restrained by order of this Court, 12 DEFENDANT’S continued use of PLAINTIFF’S and other Class members’ images and likeness 13 will cause PLAINTIFF and other Class member great and irreparable injury in that the impairment 14 of their reputation and standing will continue to be threatened. 15 46. PLAINTIFF and other Class members have no adequate remedy at law for the 16 injuries being suffered in that a judgment for monetary damages alone will not end the invasion of 17 their right of privacy or suffice to fully remedy their injuries. 18 SECOND CAUSE OF ACTION 19 (INVASION OF COMMON LAW RIGHT OF PRIVACY – UNAUTHORIZED 20 MISAPPROPRIATION OF IMAGE) 21 47. PLAINTIFF re-alleges paragraphs 1 through 45 inclusive of this complaint, and 22 incorporate the same by reference as though set forth at length herein. 23 48. By virtue of DEFENDANT’S wrongdoing and the facts alleged herein above, 24 DEFENDANT, separate and apart from, any statutory violation of California Civil Code § 3344, 25 committed an invasion of PLAINTIFF’S and other Class members’ right of privacy as recognized 26 by the common law of the State of California, and as supported and protected by the Constitution 27 of the State of California. 28 49. DEFENDANT, without PLAINTIFF’S and other Class members’ consent, invaded 8 CLASS ACTION COMPLAINT 1 PLAINTIFF’S and Class members’ right to privacy by unlawfully representing to the general 2 population that they endorsed DEFENDANT’S advertising via the internet, as alleged above. 3 50. DEFENDANT invaded PLAINTIFF’S and Class members’ right to privacy by 4 unlawfully using PLAINTIFF’S Facebook profiles to promote advertising, of which it knew 5 DEFENDANT had not obtained a valid written consent from PLAINTIFF or other Class 6 members. 7 51. The appropriation was unauthorized and without PLAINTIFF’S consent or the 8 consent of Class members. 9 52. DEFENDANT’S conduct involved the appropriation of PLAINTIFF’S image and 10 likeness, and the image and likeness of other Class members. In doing the acts alleged herein 11 DEFENDANT, without PLAINTIFF’S or Class members’ consent, invaded PLAINTIFF’S and 12 Class members’ right to privacy by unlawfully publishing their likenesses. 13 53. The appropriation was for DEFENDANT’S advantage in that DEFENDANT used 14 PLAINTIFF’S and Class members’ Facebook profiles and likenesses to promote and market their 15 online presence, website, and overall marketability, as well as that of DEFENDANT’S advertising 16 customers. 17 54. Any public interest to be served by DEFENDANT’S action could be done without 18 the use of PLAINTIFF’S and Class members’ likenesses. 19 55. As a proximate result of the above misappropriation of likenesses, PLAINTIFF and 20 Class members were exposed to loss of reputation humiliation, embarrassment, hurt feeling, 21 mental anguish, and suffering, all to their general damage in an amount according to proof. 22 56. In making the misappropriation described above, DEFENDANT acted with 23 negligence, oppression, fraud, and malice, engaging in despicable conduct carried on by 24 DEFENDANT with a willful and conscious disregard of PLAINTIFF’S rights and the rights of 25 other Class members and have subjected them to cruel and unjust hardship and humiliation in 26 conscious disregard of their rights, engaging in deceit and concealing material facts known to 27 DEFENDANT with the intention on the part of DEFENDANT to thereby deprive PLAINTIFF 28 and Class members of their property rights, legal rights and otherwise to cause PLAINTIFF and 9 CLASS ACTION COMPLAINT 1 Class members injury, as described herein above. In doing the acts alleged herein, DEFENDANT, 2 without PLAINTIFF’S or Class members’ consent, invaded their right to privacy by unlawfully 3 publishing their Facebook profiles and likenesses. 4 57. PLAINTIFF believes that DEFENDANT will to continue disclosing the above 5 information. Unless and until enjoined and restrained by order of this court, DEFENDANT’S 6 continued publication will cause PLAINTIFF and Class members great and irreparable injury. 7 PLAINTIFF has no adequate remedy at law for the injuries being suffered in that a judgment for 8 monetary damages will not end the invasion of PLAINTIFF’S or Class members’ privacy. 9 58. As a direct and proximate result of DEFENDANT’S negligent and/or reckless 10 conduct, PLAINTIFF and Class members have been damaged in an amount to be proven at trial. 11 THIRD CAUSE OF ACTION 12 (INVASION OF COMMON LAW RIGHT OF PRIVACY - PUBLICLY PLACING 13 PERSON IN FALSE LIGHT IN THE PUBLIC EYE) 14 59. PLAINTIFF re-alleges the foregoing paragraphs of this complaint and incorporates 15 the same by reference as though set forth at length herein. 16 60. DEFENDANT, without PLAINTIFF’S consent and the consent of other Class 17 members, invaded PLAINTIFF’S and other Class members’ right of privacy by posting on 18 Facebook advertisements of companies, products and/or services which contained PLAINTIFF’S 19 and Class members’ misappropriated likenesses, purporting to promote said companies. 20 61. PLAINTIFF and other Class members are portrayed in these advertisements 21 promoting said companies/products/services by “Liking” them with their Facebook profiles. (See 22 Exhibit “A”). 23 62. Such disclosure by DEFENDANT created publicity in the sense of a public 24 disclosure to a large number of people in that this was published on the Internet to thousands, 25 perhaps millions of other Facebook users. 26 63. The publicity created by DEFENDANT placed PLAINTIFF and Class members in 27 a false light in the public eye in that DEFENDANT’S advertisements suggest that PLAINTIFF 28 and Class members like, promote and/or use the companies/products/services depicted in said 10 CLASS ACTION COMPLAINT 1 advertisements. 2 64. The publicity created by DEFENDANT was offensive and objectionable to 3 PLAINTIFF and Class members, and to a reasonable person of ordinary sensibilities. 4 65. The publicity created by DEFENDANT was done with negligence and/or malice 5 in that it was made either with knowledge of its falsity or in reckless disregard of its truth in that 6 the advertisements depicting PLAINTIFF and Class members were calculated falsehoods because 7 DEFENDANT knew that PLAINTIFF and Class members did not in fact like, promote and/or use 8 the companies/products/services depicted in said advertisements. 9 66. As a proximate result of the above-mentioned disclosure and depictions, 10 PLAINTIFF and Class members suffered general damages in an amount according to proof. 11 67. In making the disclosure and depiction described above, DEFENDANT was guilty 12 of negligence, oppression, fraud, or malice, in that DEFENDANT made the disclosure with 13 negligence or with a willful and conscious disregard of PLAINTIFF’S and Class members’ 14 property rights. PLAINTIFF therefore seeks an award of damages, including punitive damages, in 15 an amount to be proven at trial, on behalf of himself and the Class. 16 68. PLAINTIFF believes that DEFENDANT will to continue disclosing the above 17 information. Unless and until enjoined and restrained by order of this court, DEFENDANT’S 18 continued publication will cause PLAINTIFF and Class members great and irreparable injury. 19 PLAINTIFF has no adequate remedy at law for the injuries being suffered in that a judgment for 20 monetary damages will not end the invasion of PLAINTIFF’S or Class members’ privacy. 21 FOURTH CAUSE OF ACTION 22 UNLAWFUL, UNFAIR, AND FRAUDULENT BUSINESS PRACTICES UNDER 23 CALIFORNIA BUSINESS AND PROFESSIONS CODE § 17200, et seq. 24 69. PLAINTIFF incorporates by reference all of the above paragraphs of this 25 Complaint as though fully stated herein. 26 70. DEFENDANT’S acts, practices, and omissions detailed above constitute unlawful, 27 unfair and/or fraudulent business practices and acts, within the meaning of California Business & 28 Professions Code § 17200 et seq. 11 CLASS ACTION COMPLAINT 1 71. DEFENDANT’S acts, practices, and omissions detailed above constitute fraudulent 2 practices in that they are likely to deceive and did deceive reasonable consumers. PLAINTIFF 3 and each member of the Class were fraudulently induced to register with Facebook and/or 4 continue using Facebook and provide content and information based on their understanding that 5 DEFENDANT would not fabricate false information about them and broadcast it to their Friends 6 and others. 7 72. DEFENDANT’S acts, practices, and omissions detailed above, constitute unlawful 8 practices and/or acts in that they violate Cal. Civ. Code § 3344, as well as the common law right to 9 privacy by, inter alia, systematically misappropriating the likeness of PLAINTIFF and Class 10 members and portraying them in a false light. 11 73. DEFENDANT has committed all of the aforesaid acts of infringement deliberately, 12 willfully, maliciously and oppressively, without regard to PLAINTIFF’S or Class members’ legal, 13 contractual, and exclusive proprietary rights. 14 74. The potential harm that consumers will be deceived into registering for and using 15 Facebook and be the subject of DEFENDANT’S false and misleading representations is 16 substantially injurious to consumers and violates public policy, and is immoral, unethical, 17 oppressive, and unscrupulous, because the gravity of the conduct outweighs any alleged benefits 18 attributable to such conduct. 19 75. As a direct and proximate result of DEFENDANT’S unlawful, unfair and 20 fraudulent business practices as alleged herein, PLAINTIFF has suffered injury in fact and lost 21 money or property, including but not limited to loss to his reputations, the misappropriation of his 22 likenesses (which has monetary value), the lessened value of DEFENDANT’S service to him, and 23 the diminishment in value of his personal information. 24 76. Pursuant to California Business & Professions Code § 17203, PLAINTIFF seeks an 25 order of this Court prohibiting DEFENDANT from engaging in the unlawful, unfair, or fraudulent 26 business acts or practices set forth in this Complaint and/or ordering DEFENDANT perform its 27 obligations under the law and the cancellation of any illegal obligations. PLAINTIFF additionally 28 requests an order from the Court requiring that DEFENDANT provide complete equitable relief, 12 CLASS ACTION COMPLAINT 1 including that DEFENDANT disgorge profits and return or pay to PLAINTIFF and members of 2 the Class all of DEFENDANT’S ill-gotten gains obtained from the misappropriation, and/or pay 3 restitution. PLAINTIFF also requests a court order that an asset freeze or constructive trust be 4 imposed over all monies in DEFENDANT’S possession which rightfully belongs to PLAINTIFF 5 and members of the Class. 6 FIFTH CAUSE OF ACTION 7 VIOLATION OF CALIFORNIA FALSE ADVERTISING LAW 8 (CAL. BUS. & PROF. CODE § 17500 ET SEQ.) 9 77. PLAINTIFF incorporates by reference all of the above paragraphs of this 10 Complaint as though fully stated herein. 11 78. DEFENDANT committed acts of false advertising as defined by California 12 Business & Professions Code § 17500 et seq. by disseminating statements that were untrue or 13 misleading in connection with advertising of sponsored pages, by creating the false impression 14 that its users liked or promoted the products, services and/or companies in said pages, and by 15 disseminating statements, including but not limited to its terms of use (including its Statement of 16 Rights and Responsibilities and Data Use Policy), that were intended to lead reasonable 17 consumers, including PLAINTIFF and Class members, to believe that Facebook was a medium 18 intended to convey truthful information and that DEFENDANT would not create information 19 about consumers or make false representations about them, in the manner alleged above. 20 79. DEFENDANT knew or should have known through the exercise of reasonable care 21 that the statements were untrue and misleading and that PLAINTIFF and Class members would 22 rely on them to their detriment. 23 80. DEFENDANT’s actions in violation of California Business & Professions Code § 24 17500 were false and misleading such that the general public was likely to be deceived in that 25 DEFENDANT failed to inform PLAINTIFF and Class members that DEFENDANT would falsely 26 attribute sponsorship, endorsement, approval, and preference in the form of “Likes” to them when 27 publishing advertisements. 28 13 CLASS ACTION COMPLAINT 1 81. PLAINTIFF and Class members relied on DEFENDANT’S false and misleading 2 representations and omissions in deciding to register for Facebook or remain registered with 3 Facebook, provide personal information, and post content. 4 82. As a direct and proximate result of these acts, PLAINTIFF has suffered injury in 5 fact and has lost money or property, including but not limited to loss to his reputations, the 6 misappropriation of his likenesses (which has monetary value), the lessened value of 7 DEFENDANT’S service to him, and the diminishment in value of his personal information. 8 Consequently, PLAINTIFF brings this cause of action on behalf of himself and the putative class 9 and on behalf of the common or general interest and seeks restitution, disgorgement, injunctive 10 relief, and all other relief allowable under § 17500 et seq. 11 SIXTH CAUSE OF ACTION 12 VIOLATIONS OF THE CONSUMER LEGAL REMEDIES ACT 13 CAL. CIV. CODE § 1750 ET SEQ. 14 83. PLAINTIFF incorporates by reference all of the above paragraphs of this 15 Complaint as though fully stated herein. 16 84. This cause of action is brought for violations of the Consumer Legal Remedies Act 17 (“CLRA”). PLAINTIFF brings his cause of action on his own behalf and on behalf of all 18 similarly situated consumers within the meaning of Civil Code § 1781. 19 85. As set forth herein, DEFENDANT violated and continues to violate the CLRA by 20 engaging in the following practices among others proscribed by California Civil Code § 1770(a) in 21 transactions that were intended to result in and did result in the sale of goods and services to 22 consumers, including PLAINTIFF and Class members: 23 (a) misrepresenting the source, sponsorship, approval, or certification of goods 24 or services; and 25 (b) representing that goods or services have sponsorship, approval, 26 characteristics, ingredients, uses, benefits, or quantities which they do not 27 have or that a person has a sponsorship, approval, status, affiliation, or 28 connection which he or she does not have. 14 CLASS ACTION COMPLAINT 1 86. Specifically, DEFENDANT represented to the public that its users, including 2 PLAINTIFF and Class members, sponsored or liked certain products or companies without their 3 knowledge or permission. DEFENDANT knew or should have known that its representations and 4 advertisements regarding its services were false and misleading. 5 87. PLAINTIFF and other Class members relied on DEFENDANT’S representations in 6 deciding to register for Facebook or remain registered with Facebook, provide personal 7 information, and post content. 8 88. As a direct and proximate cause of DEFENDANT’S violation of the CLRA as 9 alleged hereinabove, PLAINTIFF and Class members have suffered damages, including but not 10 limited loss of money or property. 11 89. Pursuant to California Civil Code § 1780, PLAINTIFF, on behalf of himself and 12 the Class, seeks damages, restitution, injunctive relief, punitive damages, attorneys’ fees, and the 13 costs of litigation. 14 90. On or about January 08, 2014, PLAINTIFF, on behalf of himself and the putative 15 class, sent by certified mail return receipt requested a notice and demand pursuant to California 16 Civil Code § 1782 notifying DEFENDANT that it is in violation of the CLRA and must correct, 17 repair, replace, or otherwise rectify the violations. DEFENDANT was further advised that in the 18 event the relief requested has not been provided within 30 days, Plaintiff would seek monetary 19 damages pursuant to the CLRA. If DEFENDANT fails to rectify or agree to rectify the problems 20 associated with the actions detailed above or give notice to all affected consumers within 30 days 21 of the date of the written notice pursuant to California Civil Code § 1782, PLAINTIFF will seek 22 actual, punitive, and statutory damages as appropriate. 23 SEVENTH CAUSE OF ACTION 24 NEGLIGENCE 25 91. PLAINTIFF incorporates by reference all of the above paragraphs of this 26 Complaint as though fully stated herein. 27 92. DEFENDANT solicits and encourages PLAINTIFF and Class members to register 28 and use Facebook and post content on it. As part of using DEFENDANT’S service, PLAINTIFF 15 CLASS ACTION COMPLAINT 1 and members of the Class regularly post content and other personal information to be seen by 2 other persons, including their Facebook Friends. 3 93. By soliciting and encouraging PLAINTIFF and Class members to register and use 4 Facebook and post content, and by agreeing to accept PLAINTIFF’S and Class members’ content 5 and information, DEFENDANT assumed a duty to exercise reasonable care not to misrepresent 6 information about PLAINTIFF and the Class in connection with advertisements or otherwise, 7 including information they do or do not post or products, services, and/or companies they do or do 8 not sponsor, endorse, or prefer in the form of “Likes.” 9 94. DEFENDANT breached its duty of care to PLAINTIFF and Class members by 10 misrepresenting their Facebook content and information and by perpetuating false information, as 11 alleged herein. 12 95. As a direct and proximate cause of DEFENDANT’S failure to exercise reasonable 13 care, PLAINTIFF and Class members have suffered economic and non-economic injuries in the 14 form the decreased value of their personal information, the lessened value to them of 15 DEFFENDANT’S Facebook service, loss of time in correcting DEFENDANT’S false 16 representations and/or communicating with Friends to correct these false representations, loss of 17 reputation, misappropriation of their likenesses (which have monetary value), as well as 18 embarrassment, shock, anger, confusion, anxiety, and dismay. 19 96. In making the false representations alleged above, DEFENDANT was guilty of 20 negligence, oppression, fraud, or malice, in that DEFENDANT made the disclosure negligent or 21 with a willful and conscious disregard of PLAINTIFF’S and Class members’ property rights. 22 PLAINTIFF therefore seeks an award of damages, including punitive damages, in an amount to be 23 proven at trial, on behalf of himself and the Class. 24 97. PLAINTIFF believes that DEFENDANT will to continue disclosing the above 25 information. Unless and until enjoined and restrained by order of this court, DEFENDANT’S 26 continued publication will cause PLAINTIFF and Class members great and irreparable injury. 27 PLAINTIFF has no adequate remedy at law for the injuries being suffered in that a judgment for 28 monetary damages will not put a stop to DEFENDANT’S tortious conduct as alleged herein. 16 CLASS ACTION COMPLAINT 1 EIGHTH CAUSE OF ACTION 2 BREACH OF CONTRACT 3 97. PLAINTIFF incorporates by reference all of the above paragraphs of this 4 Complaint as though fully stated herein. 5 98. DEFENDANT entered into a contract with PLAINTIFF and Class members in part 6 expressed in DEFENDANT’S user agreement and other terms and conditions of use whereby 7 DEFENDANT agreed to provide its Facebook service to them in exchange for DEFENDANT’S 8 access to their personal information and Facebook content so that it could, among other things, sell 9 advertising space to marketers. 10 99. As part of this bargain, DEFENDANT agreed, whether explicitly or impliedly, not 11 to interject false content and/or make false representations about PLAINTIFF and Class members 12 that would be visible to other Facebook users, specifically users’ Friends, as this would diminish, 13 reduce, and/or eliminate the value of the service to PLAINTIFF and Class members. 14 100. DEFENDANT materially breached this contract with PLAINTIFF and Class 15 members by its conduct alleged herein, namely, by projecting false information to others, 16 including their Facebook Friends 17 101. As a direct and proximate cause of DEFENDANT’s breach, PLAINTIFF and 18 members of the Class have incurred damages in that they did not receive the benefit of the bargain 19 for which they contracted and for which they paid valuable consideration in the form of their 20 Facebook membership and presence, personal information, and Facebook content. Owing to 21 DEFENDANT’S breach, PLAINTIFF and Class members overpaid for the bargained-for service 22 and therefore are entitled to damages in an amount to be proven at trial. 23 NINTH CAUSE OF ACTION 24 BREACH OF IMPLIED COVENANT OF GOOD FAITH AND FAIR DEALING 25 102. PLAINTIFF incorporates by reference all of the above paragraphs of this 26 Complaint as though fully stated herein. 27 103. Members of the Class, including PLAINTIFF, entered into a contract alleged herein 28 above. Implied in this contract was a covenant of good faith and fair dealing by each party not to 17 CLASS ACTION COMPLAINT 1 do anything that will deprive the other parties of the benefits of the contract such as falsely 2 representing content and information to give the appearance that PLAINTIFF and Class members 3 sponsored or endorsed products, services, and/or companies in the form of “Likes” when in fact 4 they did not. 5 104. PLAINTIFF and Class members have performed all conditions, covenants, and 6 promises required of them under the contract, namely, they have registered with DEFENDANT’S 7 services and provided information and content. 8 105. DEFENDANT breached the implied covenant of good faith and fair dealing by 9 falsely representing content and information to give the appearance that PLAINTIFF and Class 10 members sponsored or endorsed products, services, and/or companies in the form of “Likes” when 11 in fact they did not. 12 106. As a direct and proximate cause of DEFENDANT’S breach of the implied 13 covenant of good faith and fair dealing, PLAINTIFF and Class members have been damaged, as 14 alleged above, in an amount to be proven at the time of trial. 15 TENTH CAUSE OF ACTION 16 RESTITUTION BASED ON QUASI-CONTRACT/UNJUST ENRICHMENT 17 107. PLAINTIFF incorporates by reference each allegation set forth above. 18 PLAINTIFF pleads this cause of action in the alternative. 19 108. DEFENDANT has been unjustly enriched at the expense of PLAINTIFF and the 20 Class, thereby creating a quasi-contractual obligation DEFENDANT to restore these ill-gotten 21 gains to PLAINTIFF and Class members. 22 109. Specifically, PLAINTIFF and other Class members conferred benefits on 23 DEFENDANT by signing up for Facebook and thereby increasing the number of Facebook users 24 and also granting Facebook permission to use their personal information and Facebook content, all 25 of which DEFENDANT derives a benefit from through its sale of advertising space. 26 110. DEFENDANT received benefits from PLAINTIFF and Class members by 27 misattributing endorsement and preferences in the form of “Likes” to them for various products, 28 services, and/or companies when they had not in fact endorsed or preferred those products, 18 CLASS ACTION COMPLAINT 1 services, and/or companies. In this way, PLAINTIFF and Class members conferred a benefit on 2 DEFENDANT by endorsing and sponsoring products, companies, and/or services that they had 3 not in fact “Liked” on Facebook. 4 111. As a direct and proximate result of DEFENDANT’s unjust enrichment, 5 PLAINTIFF and Class members are entitled to restitution and/or disgorgement, in an amount to be 6 proved at trial. 7 8 PRAYER FOR RELIEF WHEREFORE, PLAINTIFF respectfully requests that the Court grant PLAINTIFF and the 9 Class members the following relief against DEFENDANT: 10 a. An order certifying the proposed class and appointing PLAINTIFF and PLAINTIFF’S 11 12 counsel to represent the Class; b. Injunctive relief prohibiting DEFENDANT from engaging in such conduct as alleged 13 14 herein in the future as to all Counts; c. An order declaring that DEFENDANT’s 15 acts and practices constitute a misappropriation of likeness, as alleged herein as to Counts I, II and III; 16 d. Actual damages as to all Counts 17 e. 18 f. Punitive damages as to Counts I, II, III, IV and VI; 19 g. Restitution, or any other equitable relief the Court may deem just and proper as to all 20 Statutory damages as to Counts I and V; Counts; 21 h. Pre-judgment and post-judgment interest as to all Counts; 22 i. Reasonable attorneys’ fees and costs of the suit, including expert witness fees as to All 23 24 Counts; and j. Any other relief the Court may deem just and proper. 25 26 27 28 19 CLASS ACTION COMPLAINT 1 2 TRIAL BY JURY PLAINTIFF hereby demands a jury trial on all issues so triable. 3 4 Dated: January 09, 2014 Respectfully Submitted By:/s/ Todd M. Friedman, Esq. Todd M. Friedman, Esq. Attorney for Plaintiff 5 6 7 KAZEROUNI LAW GROUP, APC Abbas Kazerounian, Esq. (SBN: 249203) 8 ak@kazlg.com 9 245 Fischer Avenue, Unit D1 Costa Mesa, CA 92626 10 Telephone: (800) 400-6808 Facsimile: (800) 520-5523 11 HYDE & SWIGART Joshua B. Swigart, Esq. (SBN: 225557) 13 josh@westcoastlitigation.com 411 Camino Del Rio South, Suite 301 14 San Diego, CA 92108 Telephone: (619) 233-7770 15 Facsimile: (619) 297-1022 12 16 17 18 19 20 21 22 23 24 25 26 27 28 20 CLASS ACTION COMPLAINT 1 Exhibit A 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 21 CLASS ACTION COMPLAINT

Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.


Why Is My Information Online?