Excerpt from PYMNTS Article, Published on Apr 21, 2025.
Shopify is now facing a revived data privacy class action lawsuit in the U.S. after a significant legal turnaround by the 9th Circuit Court of Appeals. The Canadian eCommerce giant, which powers countless online retailers across the globe, is accused of installing tracking software on consumers’ devices without consent—raising concerns over digital privacy.
The lawsuit, filed by California resident Brandon Briskin, claims Shopify secretly placed tracking tools on his iPhone after he made a purchase from a retailer. According to the allegation, Shopify used that data to build a profile on Briskin and later sold this data to other businesses without permission. The core of the case centers on whether Shopify can be sued in California for its actions, even though the company operates from Canada. A lower court initially dismissed the case, and it was upheld by a three-judge panel. However, in a major shift, the full 9th Circuit ruled 10-1 in favor of reviving the lawsuit, saying Shopify actively targeted California residents. This decision marks a major win for digital rights advocates and could signal a broader shift in how U.S. courts hold global tech companies accountable for consumer data practices.
A Shopify spokesperson warned that the ruling opens the door for online platforms to face lawsuits in any jurisdiction, which could disrupt how the internet fundamentally works. Meanwhile, legal experts believe this could empower individual states to better enforce consumer protection laws on foreign-based digital businesses. Despite the legal troubles, Shopify reported impressive financials for Q4 2024, with revenue climbing 31% to $2.81 billion. As Shopify celebrates its growing market share in the U.S. and abroad, this case may shape how the company—and the broader tech world—handles data privacy going forward.
To delve deeper into this topic, please read the full article PYMNTS.
