City of Los Angeles Sues Mobile App Maker
A recent lawsuit that the Los Angeles City Attorney filed over data collection by the Weather Channel mobile application emphasizes the importance of privacy disclosures and may represent a new front in data privacy litigation. The suit, which names the IBM-owned The Weather Channel Product and Technology, LLC ("TWC") as the defendant, alleges that the Weather Channel mobile app "tracks users’ movements in minute detail, even when they are not actively using it." According to the complaint, this data is also shared with IBM affiliates and sold to third parties for TWC’s own business purposes, such as targeted marketing and analysis of user behavior by hedge funds.
The City Attorney alleges that the app’s tracking and sharing of location data amounts to a fraudulent, deceptive, and unfair practice under California’s Unfair Competition Law. According to the complaint, users believe that their data will only be used to help tailor the forecast information they receive through the app, but in reality, "maximizing the amount of geolocation data the Weather Channel App tracks is at the core of TWC’s business model." The suit seeks an injunction restricting TWC’s tracking and sharing of location data as well as civil penalties.
This suit by the City Attorney may be an early example of a new avenue of privacy enforcement within the United States. Unlike the European Union, which has adopted a single data privacy scheme to apply across sectors and jurisdictions, the United States regulates certain types of data on the federal level and leaves additional privacy regulation to the states. Most states do not have a detailed statutory scheme concerning data privacy (although California has adopted a comprehensive law that is scheduled to go into effect at the start of 2020). But every state does have a statute prohibiting unfair or fraudulent trade practices. If state and local authorities, or private citizens, use these statutes as a vehicle for allegations of insufficient privacy disclosures, companies could face the possibility of multitudes of suits in numerous jurisdictions based on their collection and use of users’ data.
Attorneys in Saul Ewing Arnstein & Lehr’s Cybersecurity and Privacy practice have extensive experience in providing privacy compliance advice and serving as litigation counsel to companies and organizations across all industry sectors. If you have any questions, please reach out to the author of this article or to the firm attorneys with whom you are regularly in contact.