Mekhail v. North Memorial Health Care, --- F.Supp.3d ---- , 2024 WL 1332260, No. 23-CV-00440 (KMM/TNL) (D. Minn. Mar. 28, 2024)
Mekhail alleged that
North’s use of a piece of hidden software on its websites (a pixel developed by
Meta) surreptitiously tracked, collected, and monetized various aspects of her
online activity, including sensitive medical information protected by law. Although
she alleged violations of the federal and Minnesota wiretap statutes and the
Minnesota health records statute (which all survived the motion to dismiss), I’ll
focus on claims under the Minnesota consumer fraud statute, the Minnesota
deceptive trade practices statute, and common law claims of invasion of privacy
and unjust enrichment.
Mekhail alleged that
North’s public-facing website, which publicly offers information about medical
issues and the health care resources provided by North, and its
password-protected “patient portal,” which contains personal medical
information, including patient records, appointment booking, and test results, both
used the pixel to surreptitiously track, collect, and transmit her online
activity, including page views, clicks, search terms, and so forth. This
information was then allegedly collated by Meta and eventually used to craft
targeted advertising to Mekhail related to her web activity.
Minnesota Consumer
Fraud Act: The MCFA prohibits the “act, use, or employment by any person of any
fraud, false pretense, false promise, misrepresentation, misleading statement
or deceptive practice, with the intent that others rely thereon in connection
with the sale of any merchandise.” Mekhail has failed to allege a
misrepresentation in connection with merchandise, as required by the statute.
The alleged misrepresentation was North’s statement that it “protect[s] health
and medical information as required by federal and state privacy law.” At oral
argument, counsel offered the theory that the “exchange of data” between Mekhail
and North represented an intangible good or commodity, but the complaint only
referred to North’s medical services. And Mekhail didn’t allege that there was
a misrepresentation made by North in connection with its provision of any
medical services. She alleged a misrepresentation related to data privacy, “but
North is not in the business of providing data privacy services.”
The Minnesota Unfair
and Deceptive Trade Practices Act prohibits the use of “deceptive trade
practices” in the course of business, vocation, or occupation, which include
“caus[ing] likelihood of confusion or of misunderstanding as to ...
certification of goods or services,” “engag[ing] in (i) unfair methods of
competition, or (ii) unfair or unconscionable acts or practices,” and
“engag[ing] in any other conduct which similarly creates a likelihood of
confusion or misunderstanding.”
North allegedly made
numerous statements that it protected patients’ medical privacy and health
data. North disputed that anything shared with Meta was protected health data
and also argued that some of allegedly deceptive statements are linked to the
Privacy Policy, which (allegedly) states that North “may disclose information
to third parties who act for us or on our behalf.” But that wasn’t enough at
the pleading stage to overcome the allegations of the complaint.
Article III
standing: MUDTPA’s only remedy was injunctive relief for a “person likely to be
damaged by a deceptive trade practice.” This showing of likely future harm that
is seemingly “indistinguishable from Article III’s threat-of-future-harm
requirement for injunctive relief.”
Mekhail alleged that
there were two likely future harms: where new data is taken from her by the
Pixel, and where the data already taken by the Pixel is used in newly harmful
ways. This first scenario was “in obvious tension” with the fact that she was,
by her own allegation, a “former patient” of North. However, she argued that
she could become a patient again, especially in an emergency situation. This
was somewhat tenuous, but nonetheless,
there are real and undeniable scenarios in which Ms. Mekhail, despite
her best efforts, becomes a patient again of North. And it is not clear to the
Court that Ms. Mekhail could ever truly quantify the likelihood of such a
scenario. After all, a medical emergency, like that contemplated in the
pleadings, can arise as real and immediately as tomorrow or, with any luck, may
never occur. It is simply not within Ms. Mekhail’s capacity to plead the kind
of concrete likelihood typically required by our standing cases.
In addition, because
she was once a patient, North allegedly has records of past treatment and
appointments. Thus, she may have to use the patient portal even if she does not
return as a patient. “If she needs to obtain or review her own medical records
from North using the portal (surely the quickest and least burdensome way) she
would once again be exposed to harm from the allegedly deceptive practices.”
But the second
theory was stronger: “her data, already collected by the Pixel, remains beyond
her control and may be used in harmful ways.” The complaint sufficiently pled a
likelihood of future harm, if not a likelihood of future deception. To find no
standing would deprive federal plaintiffs of the remedy the statute set out.
Nonetheless, she would need to do more to actually obtain injunctive relief.
Invasion of privacy
based on publication of private facts and intrusion upon seclusion: There wasn’t
a sufficiently public dissemination of her health data for the first theory. But
an intrusion by North cannot be plausibly alleged because Mekhail conceded that
it was Meta (or Meta’s Pixel), rather than North, that made the interception.
Unjust enrichment
claims survived.