ARTICLE
15 August 2016

Bare Violation Of Statute May Be Insufficient To Confer Article III Standing To Bring Class Action Claims

KL
Kramer Levin Naftalis & Frankel LLP

Contributor

Kramer Levin provides its clients proactive, creative and pragmatic solutions that address today’s most challenging legal issues. The firm is headquartered in New York with offices in Silicon Valley and Paris and fosters a strong culture of involvement in public and community service. For more information, visit www.kramerlevin.com
In a highly anticipated Article III standing decision concerning online data privacy, the Supreme Court attempted to clarify the minimum threshold required for a plaintiff's claims to survive the subject matter jurisdiction qualifications found in Article III of the Constitution.
United States Litigation, Mediation & Arbitration

Spokeo v. Robins, No. 13-1339, 578 U.S.___, 136 S. Ct. 1540 (2016)

In a highly anticipated Article III standing decision concerning online data privacy, the Supreme Court attempted to clarify the minimum threshold required for a plaintiff's claims to survive the subject matter jurisdiction qualifications found in Article III of the Constitution. At issue was whether search engine Spokeo's alleged posting of incorrect information about plaintiff on its "people search" site constituted a cognizable harm. The court vacated and remanded the Ninth Circuit's ruling that plaintiff had standing to bring a class action against Spokeo because it allegedly violated the Fair Credit Reporting Act (FCRA) by posting false information about his employment, marital status and education background. In a 6-2 decision written by Justice Alito, the Court held that because the Ninth Circuit failed to consider the "concreteness" aspect of the injury-in-fact requirement, its Article III standing analysis was incomplete. To establish Article III standing, a plaintiff must demonstrate a concrete harm. In the Court's view, a bare violation of the FCRA, which provides for statutory damages, does not necessarily confer standing, because some unlawful inaccuracies in a consumer's information — dissemination of an inaccurate ZIP code, for instance — could not "without more, ... work any concrete harm." The Court remanded to the Ninth Circuit to address "whether the particular procedural violations alleged in this case entail a degree of risk sufficient to meet the concreteness requirement" of Article III. View the decision. (Read our discussion of recent decisions applying Spokeo in Consumer Privacy and Data Security.)

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More