Class Action Lawsuit Targets Domino’s for Alleged Privacy Violation

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 intercepted and recorded telephone calls from California customers. Plaintiff alleges that Domino’s used ConverseNow’s Voice AI technology, which monitors 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 while doing so recording the conversation. Plaintiff claims that ConverseNow records these interactions real timeanalyzing customer data to refine AI technology and upsell features for future calls.

ConverseNow’s role is described as twofold: while it helps Domino’s by streamlining call handling and order fulfillment, it also helps used customer interactions to improve its own AI capabilities. These allegations allege that ConverseNow’s AI technology works without notifying customers of this data collection, effectively intercepting communications without consent.

Plaintiff alleges that Domino’s “aids, agrees, utilizes 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 ter Reminder: CIPA Violations Hold Fines 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 raises critical questions surrounding the use of AI in customer service and privacy compliance. Should the court rule in plaintiff’s favor, it could set a precedent for AI technology providers and service companies across the country to reevaluate their privacy practices.

We will keep an eye on this!