Ninth Circuit Affirms Denial Of Preliminary Injunction Against Arizona “Dealer Data Security Law”
On October 25, 2021, a unanimous panel of the United States Court of Appeals for the Ninth Circuit affirmed a district court order denying database vendors’ (“Plaintiff-Appellants”) motion for a preliminary injunction against enforcement of Arizona’s 2019 “Dealer Data Security Law.” CDK Global LLC v. Brnovich, No. 20-16469 (9th Cir. 2021). The Arizona law restricts car dealership database vendors from engaging in certain practices believed to be anticompetitive and provides consumers with certain additional privacy rights over the information that is collected for such databases. The database vendors argued that the law was preempted by the federal Copyright Act and violated their federal constitutional rights.