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March 28, 2001


The opinion of the court was delivered by: Naomi Reice Buchwald, United States District Judge.


Plaintiffs bring this class action on behalf of themselves and all others similarly situated*fn1 against defendant DoubleClick, Inc. ("defendant" or "DoubleClick") seeking injunctive and monetary relief for injuries they have suffered as a result of DoubleClick's purported illegal conduct. Specifically, plaintiffs bring three claims under federal laws: (1) 18 U.S.C. § 2701, et seq.; (2) 18 U.S.C. § 2510, et seq.; (3) 18 U.S.C. § 1030, et seq.; and four claims under state laws: (1) common law invasion of privacy; (2) common law unjust enrichment; (3) common law trespass to property; and (4) Sections 349(a) and 350 of Article 22A of the New York General Business Law.

Now pending is DoubleClick's motion, pursuant to Fed. R. Civ. P. 12(b)(6), to dismiss Claims I, II and III of the Amended Complaint for failure to state a claim on which relief can be granted. For the reasons discussed below, DoubleClick's motion is granted and the Amended Complaint is dismissed with prejudice.


This case is a multidistrict consolidated class action. The initial complaint was filed in this Court on January 31, 2000. On May 10, 2000, this Court consolidated the set of related federal class actions against DoubleClick in the Southern and Eastern Districts of New York pursuant to Rule 42(a) of the Fed. R. Civ. P. and Local Rule 1.6 of the Southern and Eastern Districts of New York.*fn2 The consolidated class filed its Amended Complaint on May 26, 2000. Later, pursuant to 28 U.S.C. § 1407 (a), the Judicial Panel on Multidistrict Litigation transferred two cases to this Court for pretrial proceedings: Steinbeck v. DoubleClick, 00 Civ. 5705, C.A, N.O. 8:00-98 (C.D. Cal) on July 31, 2000 and Freedman v. DoubleClick, 00 Civ. 7194, 2:00-1559 (E.D. La) on September 22, 2000.


DoubleClick, a Delaware corporation, is the largest provider of Internet advertising products and services in the world. Its Internet-based advertising network of over 11,000 Web publishers has enabled DoubleClick to become the market leader in delivering online advertising. DoubleClick specializes in collecting, compiling and analyzing information about Internet users through proprietary technologies and techniques, and using it to target online advertising. DoubleClick has placed billions of advertisements on its clients' behalf and its services reach the majority of Internet users in the United States.


Although a comprehensive description of the Internet is unnecessary to address the issues raised in this motion, a rudimentary grasp of its architecture and engineering is important.*fn4 The Internet is accurately described as a "network of networks." Computer networks are interconnected individual computers that share information. Anytime two or more computer networks connect, they form an "internet." The "Internet" is a shorthand name for the vast collection of interconnected computer networks that evolved from the Advanced Research Projects Agency Network ("ARPANet") developed by the United States Defense Department in the 1960's and 1970's. Today, the Internet spans the globe and connects hundreds of thousands of independent networks.

The World Wide Web ("the Web" or "WWW") is often mistakenly referred to as the Internet. However, the two are quite different. The Internet is the physical infrastructure of the online world: the servers, computers, fiber-optic cables and routers through which data is shared online. The Web is data: a vast collection of documents containing text, visual images, audio clips and other information media that is accessed through the Internet. Computers known as "servers" store these documents and make them available over the Internet through "TCP/IP" (Transmission Control Protocol/Internet Protocol), a set of standard operating and transmission protocols that structure the Web's operation. Every document has a unique "URL" (Universal Resource Locator) that identifies its physical location in the Internet's infrastructure. Users access documents by sending request messages to the servers that store the documents. When a server receives a user's request (for example, for's home page), it prepares the document and then transmits the information back to the user.

The Internet utilizes a technology called "packet switching" to carry data. Packet switching works as follows. The computer wishing to send a document ("originating computer"), such as a music file or digital image, cuts the document up into many small "packets" of information. Each packet contains the Internet Protocol ("IP") address of the destination Web site, a small portion of data from the original document, and an indication of the data's place in the original document. The originating computer then sends all of the packets through its local network to an external "router." A router is a device that contains continuously-updated directories of Internet addresses called "routing tables." The router takes each packet from the original document and sends it to the next available router in the direction of the destination Web site. Because each router is connected to many other routers and because the connection between any two given routers may be congested with traffic at a given moment, packets from the same document are often sent to different routers. Each of these routers, in turn, repeats this process, forwarding each packet it receives to the next available router in the direction of the destination Web site. Collectively, this process is called "dynamic routing."

The result is that packets of information from the originating computer may take entirely different routes over the Internet (i.e., traveling over different routers and cables) to their ultimate destination. Obviously, the packets arrive out of their original order because some have been forced to take much longer or slower routes between the originating and destination computers.*fn5 However, because each packet contains code that identifies its place in the original document, the destination computer is able to reassemble the original document from the disorganized packets. At that point, the destination computer sends a message back to the originating computer either reporting that it received the full message, or requesting that the originating computer re-send any packets that never arrived. This entire process typically occurs in a matter of seconds. Packet-switching technology and dynamic routing have helped to give the Internet's infrastructure its extraordinary efficiency and resiliency.


DoubleClick provides the Internet's largest advertising service. Commercial Web sites often rent-out online advertising "space" to other Web sites. In the simplest type of arrangement, the host Web site (e.g., rents space on its webpages to another Web site (e.g., to place a "hotlink" banner advertisement*fn6 ("banner advertisment"). When a user on the host Web site "clicks" on the banner advertisement, he is automatically connected to the advertiser's designated Web site.

DoubleClick acts as an intermediary between host Web sites and Web sites seeking to place banner advertisements. It promises client Web sites that it will place their banner advertisements in front of viewers who match their demographic target. For example, DoubleClick might try to place banner advertisements for a Web site that sells golfclubs in front of high-income people who follow golf and have a track record of making expensive online purchases. DoubleClick creates value for its customers in large part by building detailed profiles of Internet users*fn7 and using them to target clients' advertisements.

DoubleClick compiles user profiles utilizing its proprietary technologies and analyses in cooperation with its affiliated Web sites. DoubleClick is affiliated with over 11,000 Web sites for which and on which it provides targeted banner advertisements.

A select group of over 1,500 of these Web sites form the "DoubleClick Network" and are among "the most highly trafficked and branded sites on the Web." In addition, DoubleClick owns and operates two Web sites through which it also collects user data: (1) the Internet Address Finder ("IAF"); and (2)*fn8

How DoubleClick targets banner advertisements and utilizes cookies to collect user information is crucial to our analysis under the three statutes. Therefore, we examine both processes in greater detail.

A. Targeting Banner Advertisements

DoubleClick's advertising targeting process involves three participants and four steps. The three participants are: (1) the user; (2) the DoubleClick-affiliated Web site; (3) the DoubleClick server.*fn10 For the purposes of this discussion, we assume that a DoubleClick cookie already sits on the user's computer with the identification number "#0001."

In Step One, a user seeks to access a DoubleClick-affiliated Web site such as The user's browser*fn11 sends a communication to (technically, to's server) saying, in essence, "Send me your homepage." U.S. Patent No. 5,948,061 (issued September 7, 1999) ("DoubleClick Patent"), col. 3, ll. 6-9. This communication may contain data submitted as part of the request, such as a query string or field information.

In Step Two, receives the request, processes it, and returns a communication to the user saying "Here is the Web page you requested." The communication has two parts. The first part is a copy of the homepage, essentially the collection article summaries, pictures and hotlinks a user sees on his screen when appears. The only objects missing are the banner advertisements; in their places lie blank spaces. Id. at col. 3, ll. 28-34. The second part of the communication is an IP-address link to the DoubleClick server. Id. at col. 3, ll. 35-38. This link instructs the user's computer to send a communication automatically to DoubleClick's server.

In Step Three, as per the IP-address instruction, the user's computer sends a communication to the DoubleClick server saying "I am cookie #0001, send me banner advertisements to fill the blank spaces in the Web page." This communication contains information including the cookie identification number, the name of the DoubleClick-affilated Web site the user requested, and the user's browser-type. Id. at col. 3, ll. 41-52.

Finally, in Step Four, the DoubleClick server identifies the user's profile by the cookie identification number and runs a complex set of algorithms based, in part, on the user's profile, to determine which advertisements it will present to the user. Id. at col. 3, ll. 52-57, col. 5, l. 11 — col. 6, l. 59. It then sends a communication to the user with banner advertisements saying "Here are the targeted banner advertisements for the homepage." Meanwhile, it also updates the user's profile with the information from the request. Id. at col. 6, l. 60 — col. 7, l. 14.

DoubleClick's targeted advertising process is invisible to the user. His experience consists simply of requesting the homepage and, several moments later, receiving it complete with banner advertisements.

B. Cookie Information Collection

DoubleClick's cookies only collect information from one step of the above process: Step One. The cookies capture certain parts of the communications that users send to DoubleClick-affiliated Web sites. They collect this information in three ways: (1) "GET" submissions, (2) "POST" submissions, and (3) "GIF" submissions.

GET information is submitted as part of a Web site's address or "URL," in what is known as a "query string." For example, a request for a hypothetical online record store's selection of Bon Jovi albums might read: The URL query string begins with the "?" character meaning the cookie would record that the user requested information about Bon Jovi.

Users submit POST information when they fill-in multiple blank fields on a webpage. For example, if a user signed-up for an online discussion group, he might have to fill-in fields with his name, address, email address, phone number and discussion group alias. The cookie would capture this submitted POST information.

Finally, DoubleClick places GIF tags on its affiliated Web sites. GIF tags are the size of a single pixel and are invisible to users. Unseen, they record the users' movements throughout the affiliated Web site, enabling DoubleClick to learn what information the user sought and viewed.

Although the information collected by DoubleClick's cookies is allegedly voluminous and detailed, it is important to note three clearly defined parameters. First, DoubleClick's cookies only collect information concerning users' activities on DoubleClick-affiliated Web sites.*fn12 Thus, if a user visits an unaffiliated Web site, the DoubleClick cookie captures no information. Second, plaintiff does not allege that DoubleClick ever attempted to collect any information other than the GET, POST, and GIF information submitted by users. DoubleClick is never alleged to have accessed files, programs or other information on users' hard drives. Third, DoubleClick will not collect information from any user who takes simple steps to prevent DoubleClick's tracking. As plaintiffs' counsel demonstrated at oral argument, users can easily and at no cost prevent DoubleClick from collecting information from them. They may do this in two ways: (1) visiting the DoubleClick Web site and requesting an "opt-out" cookie; and (2) configuring their browsers to block any cookies from being deposited. Transcript of February 22, 2001 Oral Argument at 15-18.

Once DoubleClick collects information from the cookies on users' hard drives, it aggregates and compiles the information to build demographic profiles of users. Plaintiffs allege that DoubleClick has more than 100 million user profiles in its database. Exploiting its proprietary Dynamic Advertising Reporting & Targeting ("DART") technology, DoubleClick and its licensees*fn13 target banner advertisements using these demographic profiles.


In June 1999, DoubleClick purchased Abacus Direct Corp. ("Abacus") for more than one billion dollars. Abacus was a direct-marketing services company that maintained a database of names, addresses, telephone numbers, retail purchasing habits and other personal information on approximately ninety percent of American households, which it sold to direct marketing companies. Plaintiffs allege that DoubleClick planned to combine its database of online profiles with Abacus' database of offline customer profiles in order to create a super-database capable of matching users' online activities with their names and addresses.

In furtherance of this effort, DoubleClick created the Abacus Online Alliance ("Abacus Alliance") and amended its privacy policy. The Abacus Alliance is purportedly a confidential group of online marketers and publishers who secretly contribute their compiled customer data to a cooperative database managed by DoubleClick. In return for their contributions, Abacus Alliance members gain access to exclusive DoubleClick products and services. In mid-1999, shortly after acquiring Abacus, DoubleClick amended its privacy policy by removing its assurance that information gathered from users online would not be associated with their personally identifiable information.

Not long after the Abacus acquisition, the Federal Trade Commission ("FTC") launched an investigation into whether DoubleClick's collection, compilation and use of consumer information constituted unfair or deceptive trade practices in violation of Section 5 of the Federal Trade Commission Act.*fn14 On March 2, 2000, Kevin O'Connor, DoubleClick's CEO and Chairman of the Board, announced that he had made a "mistake" by planning to merge DoubleClick's and Abacus' databases and stated that DoubleClick would undertake no such merger until it reached an agreement with the United States government and Internet industry regarding privacy standards. It is unclear whether DoubleClick had already merged any of the information.*fn15

The FTC concluded its investigation on January 22, 2001. In a letter to DoubleClick's outside counsel, the FTC announced that it was ending its investigation with no finding that DoubleClick had engaged in unfair or deceptive trade practices. It summarized its conclusions:

Based on this investigation, it appears to staff that DoubleClick never used or disclosed consumers' PII [personal identifiable information] for purposes other than those disclosed in its privacy policy. Specifically, it appears that DoubleClick did not combine PII from Abacus Direct with clickstream collected on client Web sites. In addition, it appears that DoubleClick has not used sensitive data for any online preference marketing product, in contravention of its stated online policy. We understand that DoubleClick's Boomerang product takes user data from one site to target advertising to the same user on other sites. However, the user profiles DoubleClick creates for its Boomerang clients for this targeting contains only non-PII. Furthermore, we understand that for all new Boomerang clients, DoubleClick requires by contract that the site disclose in its privacy policy that it uses DoubleClick's services to target advertising to consumers, and DoubleClick will not implement Boomerang on a site until such disclosures are posted.*fn16

The letter also noted several commitments DoubleClick made to modifying its privacy policy to "enhance its effectiveness," including allowing a user to request an "opt out" cookie that would prevent DoubleClick from collecting information from that user.


Defendants move to dismiss plaintiffs' claims, pursuant to Fed.R.Civ.P. 12(b)(6), for failure to state a claim upon which relief may be granted. In considering a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(6), we accept as true all material factual allegations in the Amended Complaint, Atlantic Mutual Ins. Co. v. Balfour Maclaine Int'l, Ltd., 968 F.2d 196, 198 (2d Cir. 1992), and may grant the motion only where "it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief." Still v. DeBuono, 101 f.3d 888, 891 (2d Cir. 1996); see Conley v. Gibson, 355 U.S. 41, 48 (1957). "General, conclusory allegations need not be credited, however, when they are belied by more specific allegations of the complaint." Hirsch v. Arthur Andersen & Co., 72 F.3d 1085 (2d Cir. 1995) (citing Jenkins v. S & A Chaissan & Sons, Inc., 449 F. Supp. 216, 227 (S.D.N.Y. 1978); 5A Charles A. Wright & Arthur R. Miller, Federal Practice and Procedure § 1363, at 464-65 (2d ed. 1990). In addition to the facts set forth in the Amended Complaint, we may also consider documents attached thereto and incorporated by reference therein, Automated Salvage Transp., Inc. v. Wheelabrator Envtl. Sys., Inc., 155 F.3d 59, 67 ...

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