Lawyer Commentary Mondaq United States Ninth Circuit En Banc Reverses Panel Decision And Holds Non-Resident Corporation Providing Web-Based Payment Processing Platform Is Subject To Specific Personal Jurisdiction In California

Ninth Circuit En Banc Reverses Panel Decision And Holds Non-Resident Corporation Providing Web-Based Payment Processing Platform Is Subject To Specific Personal Jurisdiction In California

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In Briskin v. Shopify, Inc., No. 22-15815, 2025 U.S. App. LEXIS 9410 (9th Cir. Apr. 21, 2025), the United States Court of Appeals for the Ninth Circuit, sitting en banc, held that the Canada-based company Shopify, Inc. ("Shopify"), which provides a web-based payment processing platform to online merchants across the United States (and the world), is subject to specific personal jurisdiction in California based solely upon Shopify's extraction, maintenance and commercial distribution of personal data from consumers it knew to be located in California. In making this ruling, the Ninth Circuit became the first Circuit in the nation to address this type of personal jurisdiction question involving a global online payment platform.

The case arose after a California resident, while present in California, used his iPhone to purchase goods online from a California-based retailer that, unknown to him at the time, utilized Shopify's payment system. In the process of facilitating the transaction, Shopify allegedly installed "cookies" on...

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