Landmark Ruling Expands Jurisdiction for E-commerce: Ninth Circuit Targets Shopify's Data Practices

May 10, 2025
Landmark Ruling Expands Jurisdiction for E-commerce: Ninth Circuit Targets Shopify's Data Practices
  • 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.

Summary based on 2 sources


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