THOMAS M. DURKIN, District Judge.
Matthew Warciak alleges that Nikil, Inc. sent him a text message without his permission in violation of the Telephone Consumer Protection Act (the "TCPA"). He also alleges that the sending of the text violated the Illinois Consumer Fraud Act (the "ICFA"). R. 20. Nikil has filed a motion to dismiss for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6). R. 22. For the following reasons, that motion is granted.
A Rule 12(b)(6) motion challenges the sufficiency of the complaint. See, e.g., Hallinan v. Fraternal Order of Police of Chi. Lodge No. 7, 570 F.3d 811, 820 (7th Cir. 2009). A complaint must provide "a short and plain statement of the claim showing that the pleader is entitled to relief," Fed. R. Civ. P. 8(a)(2), sufficient to provide defendant with "fair notice" of the claim and the basis for it. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). This standard "demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation." Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). While "detailed factual allegations" are not required, "labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do." Twombly, 550 U.S. at 555. The complaint must "contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'" Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 570). "`A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.'" Mann v. Vogel, 707 F.3d 872, 877 (7th Cir. 2013) (quoting Iqbal, 556 U.S. at 678). In applying this standard, the Court accepts all well-pleaded facts as true and draws all reasonable inferences in favor of the non-moving party. Mann, 707 F.3d at 877.
Nikil developed a social network and related mobile application (or "app") called "Down to Lunch" (the "App"). R. 20 ¶ 15. The App's purpose is to "connect[] friends to allow them to easily and spontaneously meet in person for events and activities, such as meeting for lunch." Id.
Warciak alleges that he received a text message from Down to Lunch stating that one of Warciak's friends had invited him to join Down to Lunch (an "invitation text message"). Id. ¶ 36. He alleges that Down to Lunch users are not aware that by using the App to send invitations they cause a text message to be sent to recipients like Warciak, and that Nikil was actually responsible for generating the text message. Id. ¶ 26.
TCPA § 227(b)(1)(A) prohibits an individual from using an automatic telephone dialing system "to make any call" to a cell phone, other than for emergency purposes or with the prior consent of the called party. 47 U.S.C. § 227(b)(1)(A). The FCC's implementing rule interprets the statutory phrase "make any call" to mean "initiate any telephone call." 47 C.F.R. § 64.1200(a)(1). The FCC has also ruled that these requirements apply to text messages. See In the Matter of Rules & Regulations Implementing the Tel. Consumer Prot. Act of 1991, 30 F.C.C.R. 7961 ¶ 27 (2015) (the "FCC Order"). In cases addressing the applicability of TCPA § 227 to invitation text messages, the FCC provided the following guidance for determining who "initiated" a text:
30 F.C.C.R. ¶ 30.
Id. ¶ 37. By contrast, with respect to another app called "Glide," the FCC found that
Id. ¶ 35.
The relevant alleged facts about the Down to Lunch app are as follows. The first screen that appears in the Down to Lunch app asks the user if they would like to "Find Friends," and notes that choosing this option "will not text anyone." R. 20 ¶ 16 (fig. 1). If the user elects to "find friends," the app seeks permission to access the user's contacts, and if permitted, lists the user's contacts who are already using Down to Lunch. Id. ¶¶ 17-18 (figs. 2-3). Eventually, the user is confronted with a screen that suggests the user "get more friends to eat with!" Id. ¶ 21 (fig. 7). This screen informs the user that if he or she gets a "friend" to "join" Down to Lunch the user will receive "50 points," which can then be used to acquire stickers (for 2,000 points) or a t-shirt (for 5,000 points). Id. At the bottom of this screen there is also an invitation to "invite contacts," with the name of one of the user's contacts listed above two large button options, "Skip" and "Invite." Id. If the user clicks the "Invite" button, the "contact" that was listed on the screen receives a text from a Down to Lunch phone number that is composed by Down to Lunch. Warciak alleges he received the following text:
Id. ¶ 24 (fig. 9).
The facts here are analogous to the "TextMe" app and distinguishable from the "Glide" app analyzed in the FCC Order. Like the TextMe app, Warciak has alleged that users must take several "affirmative steps" before generating a text message through Down to Lunch. Most important, users must affirmatively click a button to invite a particular contact, and only then is a text message sent to that particular contact, and that particular contact alone. Unlike the Glide app, Down to Lunch does not "automatically" send text messages to every one of the user's contacts. The Down to Lunch user, not the app itself, decides whether any of the user's contacts receive a text message generated by and through Down to Lunch. Since the user decides whether the text gets sent, Nikil cannot plausibly be said to have "initiated" the text through Down to Lunch. Thus, Warciak has failed to state a claim that Nikil violated the TCPA.
As Nikil points out, several district courts have similarly interpreted the FCC Order to support dismissal of TCPA claims about mobile application text invitations at the pleading stage. See Cour v. Life360, Inc., 2016 WL 4039279, at *3-4 (N.D. Cal. July 28, 2016) ("Here, by contrast, Life360 users choose which of their contacts should receive an invitation and then press an `invite' button before invitations are sent. Life360 is therefore much more similar to TextMe."); Wright v. Lyft, Inc., 2016 WL 7971290, at *2 (W.D. Wash. Apr. 15, 2016) ("[The FCC Order] makes it clear: `invitational' messages sent at the behest of existing users of an app or system do not fall within the ambit of the TCPA."); McKenna v. WhisperText, 2015 WL 5264750, *3 (N.D. Cal. Sept. 9, 2015) ("[I]t is undeniable from [the plaintiff's] previous allegations that the human intervention of a Whisper App user is necessary to [send the text invitation]."); Huricks v. Shopkick, Inc., 2015 WL 5013299, *3 (N.D. Cal. Aug. 24, 2015) ("The Court finds the steps the user must have taken to cause the Shopkick invitational text messages to be sent are indistinguishable in all material respects from the steps a user of the TextMe app must take to cause the TextMe invitational texts to be sent, which steps, as set forth above, are tapping a button stating `invite your friends,' choosing which contacts to invite, and choosing to send the text messages by tapping another button.").
Without meaningfully distinguishing these cases, Warciak relies on a recent decision in another case he filed in this district, in which Judge Kennelly denied a motion to dismiss a TCPA claim based on texts received through a social network app. See Warciak v. One, Inc., 2016 WL 7374278 (N.D. Ill. Dec. 20, 2016). But Judge Kennelly distinguished the app at issue in One:
Id. at *4. Here, by contrast, Warciak's allegations demonstrate that Down to Lunch users know their actions initiated invitations. Far from supporting Warciak's claims in this case, Judge Kennelly's decision in One undermines them.
Warciak's allegations make it clear that users of the Down to Lunch app initiate the invitations. But Warciak argues that, under the totality of the circumstances, "invitations" should be distinguished from "texts," because the App "never informs the user that a text message is being sent, and affirmatively misrepresents that it won't happen." R. 36-1 at 11 (referring to the "Find Friends" screen which says that choosing this option "will not text anyone." R. 20 ¶ 16 (fig. 1)). Warciak argues that he has plausibly alleged that Nikil and its App are the initiator of the texts (if not the invitations) because the App "determines whether the preselected contact has a telephone number associated with it, determines the content of the text message which is sent from Defendant's own phone number(s), and determines when to send it." R. 36-1 at 11. But the fact that any number of technological processes must occur for a person to make a call or send a text— processes over which the app user has no control—does not distinguish Down to Lunch from a normal person-to-person text. All telephone or smart phone users are dependent upon telecommunications carriers to provide the mechanism for texts or phone calls to be sent and received. But those processes are irrelevant to whether a person has "initiated" the chain of technological events that results in a contact receiving a text or phone call. See 30 F.C.C.R. ¶ 37 ("TextMe is not the maker or initiator of the invitational text messages because it is not programming its cloud-based dialer to dial any call, but merely has some role, however minor, in the causal chain that results in the making of a telephone call.").
To the extent Warciak means to argue that Down to Lunch users do not know that the "invitation" will be sent in the form of a text, as opposed to an email or letter, this is beside the point. Whether Down to Lunch users think their invitations are being communicated by texts, emails, or letters, could only possibly be relevant if the users themselves were the intended defendants. If Warciak intended to sue the users, he might be right that he would need to prove both that the users "initiated" the invitation, and that the users did so knowing that the invitation was a text message actionable under the TCPA. But since the users are not the intended defendants, it is irrelevant that they might not have known that their invitations were being communicated by texts, as opposed to other forms of communications, such that they might face liability under the TPCA. Rather, the point of determining that the users are the "initiators" is to demonstrate that Nikil is not the initiator, and so cannot be liable under the TCPA. As discussed, Warciak's allegations demonstrate that the users initiated the invitations, so Nikil cannot have initiated the texts; rather, Nikil supplied the means for the user to initiate a text message. Therefore, Warciak's TCPA claim is dismissed.
The ICFA prohibits
815 ILCS 505/2. The Illinois Supreme Court has held that "[t]he elements of a claim under the [ICFA] are: (1) a deceptive act or practice by the defendant; (2) the defendant's intent that the plaintiff rely on the deception; and (3) the occurrence of the deception during a course of conduct involving trade or commerce." Robinson v. Toyota Motor Credit Corp., 775 N.E.2d 951, 960 (Ill. 2002). Additionally, a plaintiff must show that he or she suffered "actual damage" as a result of the defendant's violation of the act. 815 ILCS 505/10a. Only "purely economic injuries" are cognizable under the ICFA. Cooney v. Chi. Pub. Schs., 943 N.E.2d 23, 31 (Ill. App. Ct. 1st Dist. 2010).
Warciak argues that he has plausibly alleged that Nikil's statement that the Down to Lunch "find friends" function "will not text anyone" was deceptive, because a text was eventually sent. See R. 36-1 at 18. But as discussed, this screen clearly refers to the "find friends" function in particular, and Warciak does not allege that the "find friends" function caused a text to be sent. The screen following the "find friends" screen proposed that the user "invite" friends to "join" Down to Lunch, and choosing "invite" is what caused the text being sent. Warciak does not claim that there is anything deceptive about this screen. At that point, Warciak's allegations make clear, the user understands that by clicking "invite" his or her friend will receive an invitation. No reasonable person would impute the "no text will be sent" statement from the "find friends" screen to likewise apply to the screen that provides the means for the user to affirmatively invite one of their contacts to join Down to Lunch. Thus, Warciak has failed to allege a deceptive statement that can satisfy the ICFA.
Even if Nikil's statement is deceptive for purposes of the ICFA (which it is not), Warciak has failed to allege actual damage. Warciak alleges that the class
R. 20 ¶ 35. Only the cost of a receiving a text message and loss of battery life can be described as "economic injuries." But although Warciak alleges that the class suffered these injuries as a whole, he does not allege he suffered these particular injuries himself. Rather, he alleges that he was only injured in that the "intrusive text messages adversely affected [his] right to privacy." Id. ¶ 38. This is not an economic injury cognizable under the ICFA. So even if Warciak had sufficiently alleged a deceptive statement, his claim would fail because he has not alleged economic damages.
For the foregoing reasons, Nikil's motion, R. 22, is granted, and Warciak's claims are dismissed without prejudice. Should Warciak believe he can, consistent with Federal Rule of Civil Procedure 11, cure the deficiencies identified in this opinion, he may file a motion for leave to amend by April 21, 2017. The motion must attach a proposed amended complaint, and be supported by a brief of no more than five pages explaining how the proposed amendments address the Court's analysis in this opinion. Nikil should not respond to any such motion unless the Court so orders. If Warciak does not file such a motion by April 21, 2017, this dismissal will be with prejudice.
R. 36-1 at 12. Warciak uses the inapposite comparison of voice and text technologies to create a red herring. No sender of a text is ever "on the line" in a manner analogous to a phone call. Yet the TCPA still applies to text messages.
Furthermore, Warciak's contention that Down to Lunch users do not "know that clicking the invite button was going to make Down to Lunch [contact their] friends at random," is an inaccurate characterization of Warciak's own allegations. He has alleged that Down to Lunch users are presented with a screen listing one particular contact name with the option to "invite" that contact to "join" Down to Lunch. There is nothing random about the process. Rather, according to Warciak's allegations, Down to Lunch users know precisely who they are inviting to join the network and when they are doing so.