Hunton Retail Law Resource

On May 9, 2024, the First Circuit became the first federal appellate court to address whether national retail websites’ use of session replay code creates specific personal jurisdiction for wiretapping claims allowing website users to hale retailers into court in any state where they visited these websites. The First Circuit concluded that it does not. It held that a website user failed to demonstrate that Ohio-based Bloomingdales.com intentionally targeted its website and its accompanying use of session replay software at users in Massachusetts and, therefore, failed to establish specific personal jurisdiction over Bloomingdales.com for alleged violations of the Massachusetts Wiretapping Act and Massachusetts Invasion of Privacy Statute. Rosenthal v. Bloomingdales.com, LLC, No. 23-1683, 2024 WL 2074685 (1st Cir. May 9, 2024). 

Earlier this month, a Pennsylvania federal judge held that users of Bass Pro Shops’ and Cabela’s websites lacked Article III standing to sue the retailers for use of “session replay” software, where the users failed to allege that the software captured their personal information, such as financial data or medical diagnosis information.  In Re: BPS Direct, LLC, and Cabela's, LLC, Wiretapping, No. 2:23-md-03074 (E.D. Pa. Dec. 5, 2023).  

Plaintiff’s firms continue to file variations of state law wiretapping lawsuits over “session replay” software and “live chat” or “chatbot” applications in various jurisdictions. These filings typically allege that companies use such software tools to record users’ interactions with a website without first obtaining users’ consent, thereby violating the wiretapping, eavesdropping, or interception provisions of various state laws. Session replay software allows companies to record and play back users’ interactions on its websites. The “live chat” or “chatbot” feature allows a website user to engage in text conversations with an assistant, to which the company has access. These wiretapping claims threaten substantial penalties. Companies that use these web-tracking tools, however, can take steps to protect themselves from these lawsuits by a careful examination of the software being used and by evaluating what disclosures or consents may be warranted.

On July 23, 2020, U.S. Congresswoman Jan Schakowsky introduced H.R.7756 to require online marketplaces to verify and disclose to consumers certain information regarding high-volume third-party sellers of consumer products. The goal of the bill is to combat the sale of stolen, counterfeit, and dangerous consumer products by requiring transparency of third-party sellers on online retail marketplaces.