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Matthew Schruers President & CEO at Computer & Communications Industry Association | Official website

CCIA files amicus brief supporting appropriate legal standards for online companies

The Computer & Communications Industry Association (CCIA) has submitted an amicus brief to the 9th Circuit Court of Appeals in the case of Briskin v. Shopify, advocating for a decision that would align plaintiffs' lawsuits with the U.S. Constitution. In 2023, a three-judge panel ruled that under the Due Process Clause, a company cannot be sued in a state where it did not direct its services. The 9th Circuit is set to review this decision en banc, which could have significant implications for internet-based commerce across the United States.

The appeal centers on whether companies providing back-end support to online retailers can be compelled to defend claims nationwide simply because their service might facilitate transactions in various states. Both the trial court and appellate panel rejected this notion, but now a plaintiff seeks to overturn these decisions by appealing to the full 9th Circuit.

Stephanie Joyce, CCIA Senior Vice President and Chief of Staff, stated: "The 9th Circuit panel got it right: companies must affirmatively direct their services to a state before they can be hauled into court there. The plaintiff is asking the court to ignore 30 years of precedent established by the court, as well as the Due Process Clause of the U.S. Constitution. CCIA supports Shopify’s position that plaintiff’s argument is both legally incorrect and foolhardy. Companies that support online commerce would face crippling litigation exposure and could be forced to cease providing their valuable, innovative services to the companies on which users rely for efficient, cost-saving purchases. Internet commerce would come to a screeching halt."