Morgan Lewis announced on May 12 that it secured an appellate victory for Amazon in a precedential Third Circuit decision, which affirmed the dismissal of a privacy class action brought under the Illinois Biometric Information Privacy Act (BIPA).
The ruling is significant because it clarifies how BIPA applies to companies using cloud-based call center platforms and voice-enabled technologies. The court’s decision provides guidance for businesses relying on customer-authentication tools, reinforcing that merely having a plaintiff in Illinois does not automatically bring out-of-state technology activities under BIPA.
According to Morgan Lewis, the Third Circuit upheld summary judgment and judgment on the pleadings in favor of Amazon. The court also dismissed claims against co-defendant Pindrop Security Inc., finding that Pindrop’s authentication services qualified for BIPA’s “financial institution” exemption. Additionally, the court concluded that plaintiffs failed to show Amazon’s alleged conduct occurred primarily and substantially in Illinois, as required for BIPA to apply extraterritorially.
The legal team representing Amazon included Morgan Lewis partners Beth Herrington, Ari Selman, Jody Barillare, Michael Kenneally, Jordan McCrary, and associate Kyle Nodes.
The outcome is expected to influence how future privacy suits involving biometric data are evaluated when technology crosses state lines. Additional coverage of this case is available from Bloomberg Law and Mealey’s.
