The U.S. Court of Appeals for the Ninth Circuit has reinstated a data privacy class action against Shopify Inc., ruling that the Canadian ecommerce applications development and services company can be sued in California over allegations it unlawfully tracked user activity and resold personal data.

California resident Brandon Briskin originally filed the lawsuit in August 2021. It claims that Shopify installed tracking cookies on his iPhone without his knowledge or consent while he was completing a transaction with a California-based retailer using Shopify’s checkout system. The complaint alleges that Shopify collected personally identifying information and later monetized it by selling consumer profiles to other businesses.

In a 10–1 ruling issued April 19, the Ninth Circuit reversed a federal judge’s 2022 dismissal of the case on jurisdictional grounds. The court found that Shopify’s conduct was specifically directed at California, satisfying the requirements for personal authority.

“Shopify deliberately reached out beyond Canada by embedding its software into tens of thousands of online storefronts operated by California merchants,” the court wrote. “It then knowingly installed tracking software onto unsuspecting Californians’ phones so that it could later sell the data it obtained — conduct that was neither random, isolated, nor fortuitous.”

In North America, 117 of the Top 2000 online retailers use Shopify as their ecommerce platform. The Top 2000 is Digital Commerce 360’s database of the largest online retailers in the region by their annual ecommerce sales. In 2024, those 117 online retailers combined for more than $9.78 billion in web sales.

Shopify class action lawsuit in California

The court added that Briskin’s allegations “arise directly out of this purposeful conduct.” It noted that Shopify had “cultivated a substantial commercial presence in California” through its integration with local retailers and consumers.

“Shopify’s intentional engagement with California retailers and consumers allowed it to quietly accumulate valuable consumer data,” according to the filing. “It functioned as more than a passive ecommerce platform — it functioned as a data broker operating within California.”

Briskin seeks to represent a class defined as “all natural persons who, between August 13, 2017, and the present, submitted payment information via Shopify’s software while located in California.”

Shopify had argued that it should not be subject to California’s authority. It asserts its operations are international and not specifically tied to any single U.S. state. The company sought to have the case moved to courts in Canada, New York, or Delaware, citing its terms of service and business structure.

However, the Ninth Circuit rejected that argument. It said Shopify “purposefully availed itself” of California’s market and consumer base.

In a sharply worded dissent, Circuit Judge Consuelo Callahan warned that the ruling could have broad implications for online businesses.

“The majority’s reasoning effectively permits plaintiffs to sue any foreign tech company in their home state simply by interacting with its services,” she wrote. “This impermissibly manufactures jurisdiction wherever the plaintiff resides.”

The case will now return to the U.S. District Court for the Northern District of California for further proceedings. The court will consider the merits of Briskin’s claims under California’s privacy and consumer protection laws.

The decision was welcomed by privacy advocates and supported by a coalition of 30 states and the District of Columbia. D.C. filed an amicus brief asserting that consumers should be able to hold companies accountable in their home states for online privacy violations.

“This ruling attacks the basics of how the internet works,” a Shopify spokesperson told Digital Commerce 360 via email. “Left unchallenged, it drags entrepreneurs who run online businesses into distant courtrooms regardless of where they actually operate. It’s bad for entrepreneurs, ignores 30 years of established law, and conflicts with rulings from other circuit courts. We’ll keep fighting for small businesses and what they need to succeed.”

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