Cain v. Redbox Automated Retail, LLC

Redbox Automated Retail, LLC (Redbox) (defendant) operated a movie-rental business through self-service kiosks, which were typically located near grocery stores and other retailers. To rent a movie, customers interacted with, and clicked through, pages on a computer screen, providing personal information such as an email address and credit card. During the check-out process, every customer had to click a box that explicitly warned the customer that he or she was accepting and agreeing to Redbox’s terms of use and privacy policy. The terms of use and privacy policy were available for viewing on the computer screen. The privacy policy outlined how Redbox could use or disclose customers’ personal information, including to process a rental transaction, to personalize products and services for the customer, and for sales and marketing purposes. For example, Redbox contracted with a vendor to provide rental transaction receipts and, in that regard, shared email addresses and rental information with that vendor. Redbox used other partner organizations to run analytics, provide marketing services, and answer customer-service calls. Redbox disclosed customer information to these partners so that the specified service could be rendered. Michelle Cain and Radha Sampat (collectively, Cain) (plaintiffs) brought a putative class action against Redbox based on alleged disclosure and misuse of customers’ personal information in violation of Michigan’s Video Rental Privacy Act (VRPA). Cain also alleged breach of contract and unjust enrichment based on the same conduct. The parties moved for summary judgment.