/>iHi 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 intercepted and recorded phone calls placed by California customers. Plaintiff alleges that Domino’s utilized ConverseNow’s Voice AI technology, which wiretaps and processes customer orders without their consent—a potential violation of California’s Invasion of Privacy Act (“CIPA”).
According to 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 while recording the conversation. Plaintiff alleges that ConverseNow records these interactions in real-time, analyzing customer data to refine its AI technology and upsell features for future calls.
ConverseNow’s role is described as dual-purpose: while it aids Domino’s by streamlining call handling and fulfilling orders, it also uses customer interactions to enhance its own AI capabilities. These allegations claim ConverseNow’s AI technology operates without notifying customers of this data capture, effectively intercepting communications without consent.
Plaintiff alleges that Domino’s “aids, agrees with, employs, or conspires” to allow ConverseNow access to customer communications, a potential violation of CIPA, specifically under California Penal Code § 631(a) and § 632. And as a reminder, CIPA violations hold penalties of $5,000 per violation!
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 brings to the forefront critical questions surrounding the use of AI in customer service and privacy law compliance. Should the court rule in favor of Plaintiff, it could set a precedent for AI technology providers and service-based businesses nationwide to reevaluate their privacy practices.
We will keep an eye on this one!
