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In Re Vistaprint Corp (MDL 4:08-md-1994) (S.D. Tex.) (Aug. 31, 2009)

In Re Vistaprint Corp (MDL 4:08-md-1994) (S.D. Tex.) (Aug. 31, 2009)

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Plaintiffs filed a class action alleging Vistaprint engaged in unfair business practices relating to "rewards programs." The court dismisses the claims finding that the online sign up process is not deceptive as a matter of law. The Fifth Circuit affirms in a per curiam order, adopting the reasoning of the district court.
Plaintiffs filed a class action alleging Vistaprint engaged in unfair business practices relating to "rewards programs." The court dismisses the claims finding that the online sign up process is not deceptive as a matter of law. The Fifth Circuit affirms in a per curiam order, adopting the reasoning of the district court.

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Published by: Venkat Balasubramani on Sep 08, 2010
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09/29/2010

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Plaintiffs Deloris Gordon, Kevin Woolley, Renee West, and Laurel Hudson havevoluntarily dismissed their claims against Defendant VistaPrint Limited.
See
Voluntary Dismissal [Doc. # 58]. VistaPrint Limited has not been served and isdismissed pursuant to Rule 4(m) of the Federal Rules of Civil Procedure as to all othercases in this MDL.
P:\ORDERS\MDL-1994\MsD.wpd
IN THE UNITED STATES DISTRICT COURTFOR THE SOUTHERN DISTRICT OF TEXASHOUSTON DIVISION
In re:§VISTAPRINT CORP MARKETING §MDL 4:08-md-1994AND SALES PRACTICES§(This Order Relates to All Cases)LITIGATION§
MEMORANDUM AND ORDER
This multidistrict litigation case is before the Court on the Motion to Dismiss[Doc. # 17] filed by Defendants Adaptive Marketing LLC and Vertrue Incorporated(collectively, “Adaptive”) and the Motion to Dismiss [Doc. # 21] filed by DefendantVistaPrint USA, Inc. (“VistaPrint”).
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Plaintiffs filed a Response [Doc. # 40],Adaptive and VistaPrint each filed a Reply [Docs. # 50, # 49 respectively]. Havingreviewed the record and applied the relevant legal authorities, the Court
grants
bothMotions to Dismiss.
I.FACTUAL AND PROCEDURAL BACKGROUND
Plaintiffs allege that they ordered business cards from the website“vistaprint.com” and paid for their orders with a debit or credit card. Plaintiffs allegethat, during the process of completing their purchases online, they were tricked into
Case 4:08-md-01994 Document 61 Filed in TXSD on 08/31/09 Page 1 of 27
 
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The details of the relevant webpages will be described in greater detail in Section IVaddressing Defendants’ Motion to Dismiss pursuant to Rule 12(b)(6) of the FederalRules of Civil Procedure.
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P:\ORDERS\MDL-1994\MsD.wpd
enrolling in membership programs offered by VistaPrint Limited and/or VistaPrintUSA, Inc. (collectively, “VistaPrint”) or Adaptive.
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Plaintiffs allege that Defendantsposted unauthorized charges to their debit or credit cards for the monthly feesassociated with these membership programs, which Plaintiffs characterize asworthless.Six related lawsuits filed in various federal district courts were transferred tothis Court by the Judicial Panel on Multidistrict Litigation for consolidated pretrialproceedings. Four of the named Plaintiffs – Deloris Gordon, Kevin Woolley, ReneeWest, and Laurel Hudson – filed a Consolidated Amended Complaint (“Complaint”)[Doc. # 11]. In their Complaint, Plaintiffs allege that they ordered business cards fromVistaPrint’s website. They also allege that, in connection with those purchases,Defendants deceived them into entering their email addresses and clicking on an ovalwith the word “Yes,” resulting in charges to their credit or debit cards. Plaintiffsclaim that Defendants violated the Electronic Funds Transfer Act (“EFTA”) and theElectronic Communications Privacy Act (“ECPA”). Plaintiffs also assert a commonlaw claim for unjust enrichment, a common law claim for “money had and received,”and a claim that Defendants violated the Massachusetts Unfair Trade Practices Act
Case 4:08-md-01994 Document 61 Filed in TXSD on 08/31/09 Page 2 of 27
 
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Plaintiffs also asserted a common law conversion claim, but have voluntarilydismissed that claim.
See
Response [Doc. # 40], p. 20 n.8.
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P:\ORDERS\MDL-1994\MsD.wpd
(“MUTPA”).
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Plaintiffs seek “compensatory damages” including a refund of theallegedly unauthorized charges, attorneys’ fees, costs, and related expenses. Plaintiffsalso seek a declaratory judgment that Defendants violated the EFTA, the ECPA, andthe MUTPA. Each of the claims is based on Plaintiffs’ position that the websites atissue are deceptive.In the pending Motions to Dismiss, Defendants argue that, as a matter of law,the websites are not deceptive and that Defendants cannot be held liable under anylegal theory asserted by Plaintiffs. Defendants also argue that the unjust enrichmentand “money had and received claims” should be dismissed because the issues areaddressed by a contract between Plaintiffs and Defendants. Defendants also argue thatthe EFTA claims by Woolley and Gordon fail because the EFTA does not apply tocredit card transactions, and that the EFTA claims of all Plaintiffs fail because thetransfers were not “unauthorized electronic fund transfers” as defined by the EFTA.Defendants argue that the ECPA claim fails because there was no “interception” asrequired by the statute. Defendants move to dismiss the MUTPA claim because thewebsite is not deceptive. Defendants also challenge the standing of Woolley andHudson because both Plaintiffs received full refunds prior to filing their lawsuits.
Case 4:08-md-01994 Document 61 Filed in TXSD on 08/31/09 Page 3 of 27

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