De v. Kelley Blue Book Co.

Background

Gayatri De filed a putative class action against Kelley Blue Book Co., Inc. She alleges that Kelley Blue Book’s website, www.kbb.com, installs third-party trackers on visitors’ internet browsers. The complaint asserts a claim under the Electronic Communications Privacy Act, 18 U.S.C. § 2511, and claims under various California laws.

De originally filed the case in Contra Costa County Superior Court. Kelley Blue Book removed it to federal court, relying on federal-question jurisdiction and the Class Action Fairness Act.

Standing concerns

Federal courts may decide only qualifying cases and controversies. To establish Article III standing, a plaintiff must show a concrete and particularized injury that was actual or imminent, that the defendant likely caused the injury, and that a court order would likely remedy it. In a proposed class action, at least one named plaintiff must have standing.

The complaint alleges that De visited the website multiple times per week in June 2026 while researching and comparing vehicles. It alleges that the website’s code caused trackers to be installed on her browsers. But the court noted that the complaint does not say what data was collected or shared, what targeted advertising De received, or how the alleged collection was highly offensive. The complaint generally refers to identifying information, website activity, internet-protocol addresses, and other user-behavior data.

The court discussed Ninth Circuit authority stating that tracking or disclosing information such as an internet-protocol address, without more, may not be sufficiently similar to the highly offensive privacy intrusions recognized by common-law tort law to constitute a concrete injury. The court also found that the complaint did not allege enough facts to support an inference that such information was collected about De personally. Because a plaintiff must have a personal stake in the case, the court concluded that the complaint did not allege sufficient facts showing a concrete injury for Article III standing.

Order

The court issued an order to show cause concerning Article III standing. It ordered Kelley Blue Book to explain in writing by September 25, 2026, why the action should not be remanded to Contra Costa County Superior Court for lack of subject-matter jurisdiction. The opinion does not state that the case has already been remanded or that the court has finally ruled on standing.

The court also stated that De need not respond to Kelley Blue Book’s motion to compel arbitration unless and until the court determines that it has subject-matter jurisdiction. The order was signed by United States District Judge Jacqueline Scott Corley.