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April 22nd Washington, D.C.—2025 April 22nd, 2025 The U.S. Court of Appeals for the Ninth Circuit has made an important decision for digital privacy rights, ruling that Shopify Inc. must face a class-action lawsuit in California over allegations of illegal data collection.
The matter stems from a complaint by California resident Brandon Briskin. He claims Shopify integrated tracking software onto his iPhone while he shopped online. He alleges the company gathered sensitive data about him without consent. Shopify then created a user profile and later sold it to third-party retailers. The data was used for business and marketing purposes.
Lower courts initially dismissed the case due to jurisdictional issues. However, the court later revived it. The court found Shopify’s actions were not incidental or generic. Instead, they targeted California customers. Such behavior makes the company liable to the state’s legal authority.
The decision will have wider implications for international digital platforms and raises the possibility that the U.S. states may accuse multinational companies of filing an action even though they do not have any physical presence in the states.
Shopify has its headquarters within Ottawa, Canada, and claims that this creates an unsafe precedent, potentially making global service providers vulnerable to legal action in countries that they don’t specifically have a specific interest in. The U.S. Chamber of Commerce endorsed Shopify’s stance, warning of potential legal ramifications if these regulations become standard.
On the other hand, thirty U.S. states and Washington, D.C. have overwhelmingly supported the suit, backing Briskin’s right to protection under the state’s consumer privacy laws.
Legal experts say the ruling could change how the U.S. understands online data privacy and consumer privacy rights going forward. Shopify has not released any official statement since the decision.
Keep up-to-date on the latest developments in the case here on AtoZTechWorld.
