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`QUINN EMANUEL URQUHART & SULLIVAN, LLP
` James R. Asperger (Bar No. 83188)
` jimasperger@quinnemanuel.com
` Stephen A. Broome (Bar No. 314605)
` stephenbroome@quinnemanuel.com
` Lauren B. Lindsay (Bar No. 280516)
` laurenlindsay@quinnemanuel.com
` Josef Ansorge (pro hac application pending)
` josefansorge@quinnemanuel.com
` William R. Sears (Bar No. 330888)
` willsears@quinnemanuel.com
`865 South Figueroa Street, 10th Floor
`Los Angeles, California 90017-2543
`Telephone:
`(213) 443-3000
`Facsimile:
`(213) 443-3100
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`Attorneys for Defendants TWC PRODUCT AND
`TECHNOLOGY, LLC and INTERNATIONAL
`BUSINESS MACHINES CORPORATION
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`SUPERIOR COURT OF THE STATE OF CALIFORNIA
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`COUNTY OF LOS ANGELES
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`THE PEOPLE OF THE STATE OF
`CALIFORNIA,
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`Plaintiff,
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`vs.
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`TWC PRODUCT AND TECHNOLOGY, LLC,
`a Delaware corporation; INTERNATIONAL
`BUSINESS MACHINES CORPORATION, a
`New York corporation; and DOES 2-50,
`inclusive,
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`Defendants.
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`Case No.: 19STCV00605
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`JOINT STIPULATION AND [PROPOSED]
`ORDER REGARDING SETTLEMENT
`AND DISMISSAL OF THE CASE WITH
`PREJUDICE
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`Assigned for All Purposes to
`The Hon. Mark V. Mooney
`Dept. 68
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`Action Filed: January 3, 2019
`Trial Date: May 17, 2021
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`Case No. 19STCV00605
`JOINT STIPULATION AND [PROPOSED] ORDER REGARDING SETTLEMENT AND DISMISSAL OF THE
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`Electronically Received 08/10/2020 04:28 PM
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`JOINT STIPULATION OF SETTLEMENT AND DISMISSAL
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`Plaintiff, The People of the State of California (the “People”), represented by the Los
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`Angeles City Attorney (“City Attorney”), and Defendants TWC Product and Technology, LLC
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`(“TWC”) and International Business Machines Corporation (“IBM”) (collectively, “Defendants”),
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`respectfully submit this Joint Stipulation and [Proposed] Order regarding settlement and dismissal
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`of the case with prejudice (the “Stipulation”):
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`WHEREAS, on January 3, 2019, the People filed a Complaint against TWC alleging, inter
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`alia, that, TWC violated the Unfair Competition Law (Bus. & Prof. Code §§ 17200 et seq.) (“UCL”)
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`by employing deceptive, misleading, and unfair statements and omissions through The Weather
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`Channel App (the “App”), including in the App’s location-access permission prompt, regarding
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`Defendants’ advertising and commercial uses of location data collected through the App and the
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`sharing of such data with third-parties;
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`WHEREAS, on February 26, 2019, TWC filed an Answer to the Complaint asserting, inter
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`alia, that the information that the People claim TWC allegedly omitted from the App’s location-
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`access permission prompt was in fact disclosed in the App’s online privacy policy, in compliance
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`with the California Online Privacy Protection Act (Bus. & Prof. Code §§ 22575, et seq.)
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`(“CalOPPA”), and also in the App’s in-app Privacy Settings page;
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`WHEREAS, on June 12, 2019, the People amended their Complaint to add TWC’s parent
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`company, IBM, as a defendant, and on July 17, 2019, IBM answered the Complaint;
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`WHEREAS, on April 10, 2020, Defendants amended their Answers to add the defense of
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`equitable abstention;
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`WHEREAS, since January 23, 2019, the parties have engaged in substantial discovery;
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`WHEREAS, on June 11, 2020, Defendants filed two motions for summary judgment, one
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`seeking summary judgment on the People’s UCL cause of action, and the other seeking summary
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`judgment on Defendants’ equitable abstention defense;
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`WHEREAS, the parties have reached agreement on terms for the settlement and dismissal
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`of the case with prejudice;
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`Case No. 19STCV00605
`JOINT STIPULATION AND [PROPOSED] ORDER REGARDING SETTLEMENT AND DISMISSAL OF THE
`CASE WITH PREJUDICE
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`WHEREAS, Defendants maintain that, at all relevant times, their disclosures to App users
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`were transparent and fully complied with all applicable laws, including CalOPPA, the California
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`Consumer Privacy Act (Cal. Civ. Code §§ 1798, et seq.) (“CCPA”), and, to the extent it could be
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`argued to apply, the UCL, and, accordingly, Defendants deny liability or fault of any kind;
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`WHEREAS, Defendants maintain that they routinely evaluate their disclosures to App users
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`in light of evolving technologies, practices, laws, and regulations;
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`WHEREAS, the People have requested that Defendants make certain changes to the App’s
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`existing disclosures contained in the App’s “just-in-time” notices to highlight and clarify certain of
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`Defendants’ practices relating to location data collected through the App, including certain practices
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`that Defendants maintain previously were, and currently are, disclosed in the App’s online privacy
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`policy;
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`WHEREAS, Defendants maintain that, although the requested changes are not required
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`under existing law, the requested changes are not inconsistent with existing law;
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`ACCORDINGLY, IT IS HEREBY STIPULATED AND AGREED THAT:
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`1.
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`The People release any and all claims against Defendants relating to the conduct
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`alleged in the Complaint, including any claims that Defendants’ disclosures to App users regarding
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`Defendants’ alleged use and sharing of location data collected through the App failed to comply
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`with the UCL or any other applicable laws.
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`2.
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`Defendants release any and all claims against the People related to the above-
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`captioned action.
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`3.
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`4.
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`This case shall be dismissed with prejudice upon entry of this Stipulation.
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`Defendants will revise the App’s existing “Blue Screen” disclosure to reflect the
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`language in Exhibit A.1
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`5.
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`Defendants will revise the App’s existing “Learn More” page to reflect the language
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`in Exhibit B (collectively with the revisions reflected in Exhibit A, the “Revisions”).2
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`1 The Blue Screen is a prompt screen shown to users after they download the App, or when they update to the latest
`version of the App.
`2 The Learn More page is a page displayed to a user of the App when they click the “Learn More” hyperlink in the
`Blue Screen.
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`Case No. 19STCV00605
`JOINT STIPULATION AND [PROPOSED] ORDER REGARDING SETTLEMENT AND DISMISSAL OF THE
`CASE WITH PREJUDICE
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`6.
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`Defendants will make good faith efforts to implement the Revisions as soon as
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`feasible, and in no event later than October 15, 2020.
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`7.
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`The parties agree that, as of the date of this Stipulation, the Blue Screens and Learn
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`More page are subject to the CCPA.
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`8.
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`The parties agree that, as of the date of this Stipulation, the Blue Screens and Learn
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`More page, as modified by the Revisions, comply with the CCPA.
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`9.
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`The parties recognize that Defendants may, in the near future, need to change their
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`disclosures—including the Revisions—in light of, inter alia, changes to: (a) applicable disclosure
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`laws (i.e., CCPA) and regulations; (b) changes to the operating systems’ (i.e., Android’s and
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`Apple’s) terms of service, functions, and disclosures; and/or (c) Defendants’ practices.
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`10.
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`Defendants agree to give reasonable notice to the People (through the City Attorney)
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`in advance of any future changes to the Revisions. In the event the People determine, in good faith,
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`that Defendants’ proposed change violates the UCL, and Defendants are not willing to modify the
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`proposed change in a manner that is mutually acceptable to all parties, the People may move this
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`Court for appropriate relief. Nothing in this Stipulation shall prevent Defendants from making
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`changes to the Revisions notwithstanding the People’s stated objection to such changes, or to the
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`People’s filing of a motion regarding the changes.
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`11.
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`None of the terms of this Stipulation shall prevent Defendants from making changes
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`to their disclosures to App users that do not materially change or omit the Revisions.
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`12.
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`Any obligations under this agreement will expire two (2) years from the date of this
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`Stipulation (the “Settlement Period”). The parties recognize that future changes to: (a) applicable
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`disclosure laws (i.e., CCPA) and regulations; (b) changes to the operating systems’ (i.e., Android’s
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`and Apple’s) terms of service, functions, and disclosures; and/or (c) Defendants’ practices, may
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`render certain
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`terms herein
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`impractical or unnecessary before
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`the Settlement Period
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`expires. Accordingly, the parties (either jointly or individually) may seek relief from the Court to
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`shorten the Settlement Period in light of any such changes.
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`Case No. 19STCV00605
`JOINT STIPULATION AND [PROPOSED] ORDER REGARDING SETTLEMENT AND DISMISSAL OF THE
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`13.
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`The Court shall retain jurisdiction over the parties during the Settlement Period
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`pursuant to Cal. Civ. Proc. Code § 664.6 solely for the purpose of enforcing the terms of this
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`Stipulation.
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`JOINT STIPULATION AND [PROPOSED] ORDER REGARDING SETTLEMENT AND DISMISSAL OF THE
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`1 Dated: August 10, 2020
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`QUINN EMANUEL URQUHART & SULLIVAN, LLP
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`2
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`By:
`-----=s..:.te'-IV--+-~c'-----------
`ey for Defendants TWC PRODUCT
`Att
`AND TECHNOLOGY, LLC and
`INTERNATIONAL BUSINESS
`MACHINES CORPORATION
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`8 Dated: August 10, 2020
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`TWC PRODUCT AND TECHNOLOGY, LLC
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`INTERNATIONAL BUSINESS MACHINES
`CORPORATION
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`By: -------,----------
`R. Tulloss Delle
`Senior Counsel, IBM Corporation
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`Dated: August 10, 2020
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`OFFICE OF THE LOS ANGELES CITY ATTORNEY
`AFFIRMATIVE LITIGATION DIVISION
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`By:
`--~A."I::~t:ei:;::te:nlbca::::um-:::=~=~-----
`ttomey for Plaintiff THE PEOPLE OF
`THE STATE OF CALIFORNIA
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`-6-
`Case No. 19STCV00605
`JOINT STIPULATION AND [PROPOSED] ORDER REGARDING SETTLEMENT AND DISMISSAL OF TIIE
`f"/1 ~C UTTT'U' DDCTTTnTf"C
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`[PROPOSED] ORDER
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`Pursuant to California Code of Civil Procedure § 581 after full consideration of the Parties’
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`stipulation in this matter and good cause appearing,
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`IT IS HEREBY ORDERED THAT:
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`The case is dismissed with prejudice.
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`Defendants shall promptly make the changes reflected in Exhibits A and B.
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`The Court shall retain jurisdiction over the parties for a period of two years following the
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`date of the foregoing Stipulation pursuant to Cal. Civ. Proc. Code § 664.6 solely for the purpose of
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`enforcing the settlement terms described above.
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`__________________, 2020
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`__________________________________
`The Honorable Mark V. Mooney
`JUDGE OF THE SUPERIOR COURT
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`Case No. 19STCV00605
`JOINT STIPULATION AND [PROPOSED] ORDER REGARDING SETTLEMENT AND DISMISSAL OF THE
`CASE WITH PREJUDICE
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`EXHIBIT A – REVISED TEXT FOR BLUE SCREEN PROMPT
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`Location and Your Weather
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`Did you know that if you allow access to your device’s location and barometric pressure sensor
`data, it enables us automatically to provide you with more accurate local forecasts?
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`As our Privacy Policy describes, if you grant permission, we use your device’s location to deliver
`forecasts and weather alerts. We also may use and share this information with trusted partners
`for ads, and to provide and improve our Services. Regardless of whether or not you allow
`location access, you can always receive accurate local forecasts by manually entering a location.
`You can change permissions at any time. Learn More.
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`I Understand
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`EXHIBIT B – REVISED TEXT FOR LEARN MORE PAGE
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`How We Use and Share Location Information
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`We collect your device’s location information and pressure sensor data through our
`applications so that we can offer you certain location-based features like forecasts, weather
`alerts, and ads, and to provide and improve our Services. The way we collect that information is
`different depending on whether you are accessing the Services through a website or mobile
`application.
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`You can still use our application without giving us permission to access your device’s location
`services by manually entering a location in the search field. However, if you disable your
`device’s location services, you will not have access to some of our features like real-time
`weather alerts for an exact location.
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`If you grant permission, we may use and share your device’s location to deliver you ads relevant
`to your location, and to provide and improve the Services. If you’ve also enabled personalized
`advertising, we may use and share your device’s location data with trusted partners to deliver
`ads that are relevant to you based on places you may have visited (for example, coffee shops).
`For more information on these trusted partners and the use and sharing of location data, you
`can review the section on sharing data in our Privacy Policy.
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`To learn more about how we use and share your device’s data and our commitment to
`protecting your privacy, visit our Privacy Policy.
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`