Bob Lewis v. Google LLC ( 2021 )


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  •                            NOT FOR PUBLICATION                           FILED
    UNITED STATES COURT OF APPEALS                        APR 15 2021
    MOLLY C. DWYER, CLERK
    U.S. COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    BOB LEWIS,                                      No.    20-16073
    Plaintiff-Appellant,            D.C. No. 3:20-cv-00085-SK
    v.
    MEMORANDUM*
    GOOGLE LLC, A Delaware Corporation;
    YOUTUBE, LLC, A Delaware Limited
    Liability Company,
    Defendants-Appellees.
    Appeal from the United States District Court
    for the Northern District of California
    Sallie Kim, Magistrate Judge, Presiding
    Submitted February 5, 2021**
    San Francisco, California
    Before: RAWLINSON and BUMATAY, Circuit Judges, and S. MURPHY, ***
    District Judge.
    Concurrence by Judge RAWLINSON
    *
    This disposition is not appropriate for publication and is not precedent
    except as provided by Ninth Circuit Rule 36-3.
    **
    The panel unanimously concludes this case is suitable for decision
    without oral argument. See Fed. R. App. P. 34(a)(2).
    ***
    The Honorable Stephen J. Murphy, III, United States District Judge
    for the Eastern District of Michigan, sitting by designation.
    Bob Lewis (“Lewis”), an author, journalist, pundit, and political
    commentator, sued Google, LLC and YouTube, LLC on several claims
    surrounding Lewis’s YouTube channel, Misandry Today. The district court
    dismissed each claim, and we affirm.
    First, the district court dismissed for lack of standing Lewis’ claims that
    § 230 of the Communications Decency Act (“CDA”) was unconstitutional and that
    YouTube did not meet the “good faith” requirement of § 230(c)(2). We review
    questions of standing de novo but review the “underlying factual findings . . .for
    clear error.” McCormack v. Herzog, 
    788 F.3d 1017
    , 1024 (9th Cir. 2015).
    Constitutional standing requires a plaintiff to show (1) an “injury in fact”
    that is “concrete and particularized,” “actual or imminent”; (2) that the injury is
    “fairly traceable to the challenged actions of the defendant”; and (3) that it is
    “likely” “that the injury will be redressed by a favorable decision.” Lujan v. Defs.
    of Wildlife, 
    504 U.S. 555
    , 560–61 (1992) (simplified). The standing analysis is
    claim specific. Town of Chester v. Laroe Estates, Inc., 
    137 S. Ct. 1645
    , 1650
    (2017).
    None of the alleged injuries in Lewis’ challenge to the CDA’s
    constitutionality are fairly traceable to the application of § 230 of the CDA. First,
    the district court found that Lewis lacked standing to challenge the constitutionality
    of § 230. Lewis’s alleged injuries—removing videos, cancelling advertisement
    2
    sharing, and so-called “shadow banning”—all arose from the actions of YouTube,
    a private entity,1 as it enforced its own standards. Section 230 does not apply to
    Lewis’s conduct or provide a mechanism for sanctions that could affect Lewis;
    instead, it provides immunity to “providers of interactive computer services against
    liability arising from content created by third parties.”2 Fair Hous. Council of San
    Fernando Valley v. Roomates.com, LLC, 
    521 F.3d 1157
    , 1162 (9th Cir. 2008) (en
    banc)). Lewis has therefore failed to show an injury that is fairly traceable to the
    CDA.
    The district court next found that Lewis lacked standing to challenge the
    application of the “good faith” requirement in § 230(c)(2)(a) of the CDA. But
    Lewis raised no arguments on appeal that specifically challenged the
    determination. And YouTube never relied on the specific subdivision of § 230 in
    the motion to dismiss or the immunity arguments under the CDA. Because no
    party invoked § 230(c)(2)(a), the provision did not harm Lewis, and no injury was
    1
    “The Free Speech Clause of the First Amendment prohibits the government—not
    a private party—from abridging speech.” Prager Univ. v. Google LLC, 
    951 F.3d 991
    , 996 (9th Cir. 2020). As “a private entity,” although YouTube provides a
    forum for speech, it is not “transform[ed]” into a state actor. 
    Id.
     at 996–97.
    2
    Lewis’ overbreadth argument facially challenging the CDA fails. Only “an
    individual whose own speech or conduct may be prohibited is permitted to
    challenge a statute on its face[.]” Bd. of Airport Comm’rs of City of L.A. v. Jews
    for Jesus, Inc., 
    482 U.S. 569
    , 574 (1987). Section 230 does not prohibit any
    speech. And Lewis’ challenge does not fall under the category of persons “whose
    own speech or conduct” may be prohibited.
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    traceable to it. Without an injury, the district court did not err in finding Lewis
    lacked standing to bring the claim.
    The district court also found that Lewis failed to allege sufficient facts to
    state a claim on his remaining claims. We review de novo a district court’s
    dismissal for failure to state a claim under Rule 12(b)(6). Curtis v. Irwin Indus.,
    Inc., 
    913 F.3d 1146
    , 1151 (9th Cir. 2019). We accept “all factual allegations in the
    complaint as true and construe the pleadings in the light most favorable to the
    nonmoving party.” Rowe v. Educ. Credit Mgmt. Corp., 
    559 F.3d 1028
    , 1029–30
    (9th Cir. 2009).
    Only a person “acting under color of state law” can commit a First
    Amendment violation actionable under 
    42 U.S.C. § 1983
    . Crumpton v. Gates, 
    947 F.2d 1418
    , 1420 (9th Cir. 1991). Here, Lewis sued private entities and asserted no
    actions that occurred under color of state law. See Prager Univ., 951 at 996
    (“YouTube is a private entity.”). YouTube committed no § 1983 violation here.
    First, Lewis brought a claim under Title II of the Civil Rights Act, 42 U.S.C.
    § 2000a(a), which provides for “full and equal enjoyment” of the goods and
    services of “any place of public accommodation.” But YouTube’s websites are not
    a “place of public accommodation.” Id. Title II “covers only places, lodgings,
    facilities[,] and establishments,” and the statute itself is devoid of language which
    would “indicate congressional intent to regulate anything other than public
    4
    facilities.” Clegg v. Cult Awareness Network, 
    18 F.3d 752
    , 755–56 (9th Cir.
    1994). To conclude Google or YouTube were places of public accommodation
    under Title II “would obfuscate the term ‘place’ and render nugatory the examples
    Congress provides to illuminate the meaning of that term.” Id. at 755. The district
    court did not err in dismissing Lewis’s Title II claim.
    Next, Lewis asserted a claim under the Lanham Act for false advertising, 
    15 U.S.C. § 1125
    (a)(1)(B). To sue under § 1125(a), “a plaintiff must allege an injury
    to a commercial interest in reputation or sales,” and thus, a consumer cannot bring
    a claim under the Lanham Act. Lexmark Int’l v. Static Control Components, Inc.,
    
    572 U.S. 118
    , 131–32 (2014). Lewis asserted claims as a consumer on the Google
    platform and not as a competitor with a commercial interest in reputation or sales.
    Accordingly, the district court properly dismissed Lewis’s Lanham Act claim for
    failure to state a claim.
    Lewis also brought a claim for fraud by omission. Under California law, a
    claim of fraud by omission requires a showing of “(1) the concealment or
    suppression of material fact, (2) a duty to disclose the fact to the plaintiff, (3)
    intentional concealment with intent to defraud, (4) justifiable reliance, and (5)
    resulting damages.” Mui Ho v. Toyota Motor Corp., 
    931 F. Supp. 2d 987
    , 999
    (N.D. Cal. 2013) (citation omitted). Lewis did not allege any facts that asserted
    YouTube had a duty to disclose to Lewis. Lewis’s allegations did not show any
    5
    alleged concealment of a material fact or reasonable reliance even as Lewis
    purported that YouTube failed to disclose that they censor hate speech.
    And, under California law, a plaintiff cannot demonstrate reasonable
    reliance on an alleged omission of information when the purportedly omitted
    information is disclosed in a contract. Davis v. HSBC Bank Nev., N.A., 
    691 F.3d 1152
    , 1163–64 (9th Cir. 2012). YouTube disclosed that it reviews flagged content
    to determine whether it violates the Community Guidelines, which in turn prohibit
    “Hateful content.” YouTube’s monetization policies elaborate that “Hateful
    content” is ineligible for monetization. Thus, Plaintiff’s fraud allegation fails to
    state a claim.
    Lewis next asserted a claim for breach of implied covenant of good faith and
    fair dealing. “[U]nder California law, all contracts have an implied covenant of
    good faith and fair dealing.” In re Vylene Enters., Inc., 
    90 F.3d 1472
    , 1477 (9th
    Cir. 1996) (citation omitted). Lewis alleged that his contract gave YouTube
    unilateral discretion to remove, restrict, demonetize, or demote his content. And
    YouTube’s terms and Guidelines explicitly authorized YouTube to remove or
    demonetize content on its platform that violated its policies, including “Hateful
    content.” Thus, YouTube’s removal or demonetization of Lewis’s videos, when
    YouTube determined them to violate the Guidelines, cannot support a claim for
    breach of the implied covenant of good faith and fair dealing. See Carma Devs.
    6
    (Cal.), Inc. v. Marathon Dev. Cal., Inc., 
    2 Cal. 4th 342
    , 374 (1992) (en banc) (“[I]f
    defendants were given the right to do what they did by the express provisions of
    the contract there can be no breach[.]”) (internal quotation marks omitted).
    Finally, Lewis brought a state law claim of tortious interference with
    prospective economic advantage. The first element of a tortious interference claim
    requires the existence of “an economic relationship between the plaintiff and some
    third party, with the possibility of future economic benefit to the plaintiff.” Korea
    Supply Co. v. Lockheed Martin Corp., 
    29 Cal. 4th 1134
    , 1153 (2003). Lewis failed
    to allege, and the complaint cannot be read to find, that he had an economic
    relationship with a third party. And California law requires that YouTube knew of
    the third-party economic relationship. 
    Id.
     But Lewis failed to show that YouTube
    was aware of any third party. The district court properly dismissed the claim.
    The district court properly found Lewis lacked standing to bring two claims,
    and we find after de novo review that he failed to adequately plead the remainder.
    AFFIRMED.
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    FILED
    Lewis v. Google, Case No. 20-16073
    APR 15 2021
    Rawlinson, Circuit Judge, concurring:
    MOLLY C. DWYER, CLERK
    U.S. COURT OF APPEALS
    I concur in the result.
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