Hello CIPAWorld!

A class action lawsuit has been filed in the Eastern District of Michigan on behalf of California residents, alleging that Domino’s Pizza, Inc. and ConverseNow Technologies, Inc. secretly wiretapped and recorded phone calls from customers in California. The plaintiff alleges that Domino’s used ConverseNow’s Voice AI technology, which intercepts and processes customer orders without their consent – ​​a potential violation of California’s Invasion of Privacy Act (“CIPA”).

According to the plaintiff, when customers in California call Domino’s restaurants, their calls are answered by ConverseNow’s automated voice AI technology. This voice assistant processes orders, suggests additional items and confirms orders – all the time records the conversation. The plaintiff alleges that ConverseNow records these interactions in in real timeanalyzes customer data to refine its AI technology and upsell capabilities for future calls.

ConverseNow’s role is described as dual-purpose: while helping Domino’s by streamlining call handling and order fulfillment, uses customer interactions to improve its own AI capabilities. These allegations allege that ConverseNow’s AI technology operates without notifying customers of this data capture, effectively eavesdropping on communications without consent.

Plaintiffs allege that Domino’s “aids, acquiesces, employs or conspires” to provide ConverseNow with access to customer communications, a potential violation of CIPA, specifically under California Penal Code § 631(a) and § 632. And as a reminder, CIPA violations carry penalties of $5,000 per violation!

The plaintiff seeks to represent two classes: a general class for all California residents whose calls were intercepted by ConverseNow and a subclass for those who specifically called Domino’s stores in California.

This lawsuit raises critical questions about the use of AI in customer service and compliance with privacy legislation. Should the court rule in favor of the plaintiffs, it could set a precedent for AI technology providers and service-based companies across the country to reevaluate their privacy practices.

We will keep an eye on this one!