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Financial Services Law Insights and Observations

District Court grants plaintiff’s injunction in data scraping suit

Courts Privacy, Cyber Risk & Data Security Data Scraping Social Media Data Collection / Aggregation

Courts

On September 30, the U.S. District Court for the Northern District of California certified a stipulation and proposed order regarding a permanent injunction and dismissal to abandon remaining allegations against an Israel-based company and a Delaware company (collectively, defendants) related to their use of data scraping from the parent company of large social media platforms (plaintiff). In 2020, the plaintiff alleged that the defendants developed and distributed internet browser extensions to illegally scrape data from the plaintiff’s platform and other platforms. The order noted that the court’s prior summary judgment decision concluded that the defendants collected data using “self-compromised” accounts of users who had downloaded the defendants’ browser extensions. The order further noted that the defendants stipulated that the plaintiff had established that it suffered “irreparable injury” and incurred a loss of at least $5,000 in a one-year period as a result of one of the companies’ unauthorized access. The order further noted that judgment has been established “based on [the Israel-based company’s] active data collection through legacy user products beginning October 2020, and based on [the Israel-based company’s] direct access to password-protected pages on [the plaintiff’s] platforms using fake or purchased user accounts.” Under the injunction, the defendants are immediately and permanently barred from accessing or using two of the plaintiff’s social media platforms without the plaintiff’s express written permission, regardless of whether the companies are using the platforms directly or via a third party. The defendants are also banned from collecting data or assisting others collect data without the plaintiff’s permission, and are required to delete any and all software, scripts or code that are designed to access or interact with two of the plaintiff’s social media platforms. Additionally, the defendants are prohibited from using or selling any data that they have previously collected from the plaintiff’s social media platforms.