A U.S. appeals court has decided that Shopify, a popular Canadian e-commerce company, must face a lawsuit in California over claims it collected personal data from shoppers without their permission. The court’s ruling could make it easier for people in the U.S. to sue internet-based companies for privacy violations, even if those companies are based outside the country.

The case started when a California resident, Brandon Briskin, accused Shopify of secretly placing tracking software, known as cookies, on his iPhone when he bought clothes from an online store called I Am Becoming. Briskin claimed Shopify used this data to create a profile about him and sold it to other businesses. He argued this was done without his knowledge or consent, which he said violated his privacy rights.

Shopify tried to get the case dismissed, saying it should not be sued in California because it operates all over the world and did not specifically target people in that state. The company suggested the lawsuit should happen in Delaware, New York, or even Canada, where Shopify is based. At first, a lower court and a small group of judges from the appeals court agreed with Shopify. However, the full appeals court later overturned that decision.

In a 10-1 ruling, the 9th U.S. Circuit Court of Appeals in San Francisco said Shopify’s actions were not accidental or random. The court stated that the company “deliberately reached out” to Californians by installing tracking software on their devices without telling them. Judge Kim McLane Wardlaw, who wrote the decision for the majority, explained that Shopify’s behavior was intentional and not just a coincidence.

Shopify disagreed with the court’s decision. A spokesperson for the company said the ruling “attacks the basics of how the internet works.” They argued that the decision could harm small business owners who use Shopify to run their online stores. According to Shopify, the ruling means entrepreneurs could be forced to defend themselves in faraway courts, even if they have no direct connection to those places. The company did not say what its next legal steps would be.

On the other hand, Briskin’s lawyer, Matt McCrary, praised the court’s decision. He said it helps hold internet companies accountable for their actions. McCrary explained that the ruling rejects the idea that a company can avoid responsibility just because it operates everywhere online. “A company can’t claim it’s jurisdictionally ‘nowhere’ just because it does business ‘everywhere,’” he said.

This case is important because it could set a new standard for how privacy laws are enforced against online businesses. Many companies use tracking tools to collect data on customers, often to improve advertising or sales. But when this happens without clear permission, it can lead to legal trouble. The court’s decision suggests that companies must be more careful about how they handle user data, especially in states like California, which has strict privacy laws.

California has some of the strongest data protection rules in the U.S., including the California Consumer Privacy Act (CCPA). This law gives residents the right to know what personal information businesses collect about them and to stop companies from selling their data. The court’s ruling could encourage more people in California—and possibly other states—to take legal action if they believe their privacy has been violated.

Shopify is a major player in the e-commerce industry, providing tools for businesses to set up online stores. Millions of merchants use its platform, and many shoppers interact with Shopify every day without even realizing it. The company’s business model relies on data to help stores understand their customers better. However, this case highlights the risks of collecting too much information without transparency.

Privacy advocates say the court’s decision is a win for consumers. They argue that people should have control over their personal data and that companies should not be allowed to track users without permission. On the other side, some tech industry groups worry that the ruling could create legal challenges for online businesses, especially smaller ones that depend on digital tools to reach customers.

The lawsuit against Shopify is not over yet. The case will now move forward in a California court, where Shopify will have to defend itself against the claims. If the company loses, it could face financial penalties and may have to change how it handles customer data. The outcome could also influence other similar cases against tech companies in the future.

For now, the ruling serves as a reminder to businesses that privacy laws are taken seriously in the U.S., especially in states like California. Companies that operate online must ensure they follow the rules and respect user consent when collecting data. Shoppers, on the other hand, may feel more empowered to speak up if they believe their privacy has been violated.

As technology continues to evolve, debates over data privacy and corporate responsibility are likely to grow. This case against Shopify is just one example of how courts are being asked to balance business interests with consumer rights. The final decision could have long-lasting effects on how online companies operate, not just in the U.S., but around the world.

In the meantime, consumers are encouraged to be aware of how their data is being used. Reading privacy policies, adjusting browser settings to limit tracking, and understanding their rights under laws like the CCPA can help people protect their personal information. For businesses, the message is clear: transparency and consent are key when dealing with customer data.

The Shopify case will be closely watched by legal experts, tech companies, and privacy advocates. Depending on how it unfolds, it could lead to new regulations or changes in how internet companies handle user data. For now, the court’s decision marks an important step in defining the boundaries of digital privacy in an increasingly connected world.