Landmark Ruling Expands Jurisdiction for E-commerce: Ninth Circuit Targets Shopify's Data Practices
May 10, 2025
On April 21, 2025, the Ninth Circuit issued a landmark ruling in Briskin v. Shopify, expanding personal jurisdiction principles for nationwide e-commerce platforms with a decisive 10–1 decision.
The case centered around Brandon Briskin, a California resident, who accused Shopify of unlawfully collecting his location data through tracking cookies without consent during an online transaction.
Briskin purchased sportswear from a retailer using Shopify's platform, which allegedly collected and monetized his personal data without his knowledge.
The court ruled that California courts held specific personal jurisdiction over Shopify based on its data tracking practices related to Briskin.
This ruling overruled previous authority that required differential targeting for jurisdiction, establishing that online platforms can be held liable if they knowingly engage with users in a state.
The decision lowers the threshold for jurisdiction, potentially increasing the risk of class action lawsuits in plaintiff-friendly states like California.
The Ninth Circuit's ruling allows lawsuits in any state where e-commerce platforms interact with users, even without a physical presence.
It clarified that interactive platforms can be sued in states where their technology targets residents, regardless of specific marketing efforts.
In light of this ruling, businesses engaging in data collection should audit their practices and ensure compliance with privacy laws to mitigate legal risks.
To avoid potential legal challenges, e-commerce businesses should consider practices such as geofencing and limiting the collection of location data.
Key takeaways from this ruling emphasize that nationwide platforms could face jurisdiction in states where their services are accessible, highlighting the importance of transparency in data collection.
Overall, this significant change in personal jurisdiction law urges e-commerce platforms to carefully evaluate their consumer interactions to prevent unintended jurisdictional consequences.
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