Date:
January 23, 2025
LinkedIn faces charges of breach of contract and privacy laws. The lawsuit alleges LinkedIn-trained AI models with users' private messages without permission, violating trust and privacy policies.
A class action has been filed against LinkedIn for allegedly sharing Premium users' private messages with third parties, violating the law. The messages, it is claimed, were used without users' consent to train and improve generative AI models - a serious violation of privacy.
The lawsuit filed in the U.S. District Court for the Northern District of California claims that LinkedIn quietly instituted a privacy setting in August 2024, automatically opting users into a program that would leverage their data for AI training. The lawsuit also alleges that LinkedIn subsequently attempted to "cover its tracks" by changing its privacy policy on September 18, 2024, adding that users can opt out of releasing information.
Key Pointers in the Lawsuit
The plaintiffs argue that LinkedIn knowingly violated its commitment to using customer data solely to support and improve its platform, thereby breaching its contractual obligations. The lawsuit claims that:
- LinkedIn did not clearly notify users of the policy changes and instead buried the information within an FAQ page.
- The company continued using data from users who had not given explicit consent before the September update.
- LinkedIn’s actions were deliberately designed to avoid public scrutiny and legal consequences.
Lawsuit Details and Allegations
Filed on behalf of millions of LinkedIn Premium users who send or receive private messages, which the network terms as InMail, this class action lawsuit seeks to avail redress for what is viewed as an intrusion into users' private affairs. According to plaintiffs, the social network has shared its private messages with third parties without permission, contravening its promise to protect users' data.
The lawsuit also claims that LinkedIn violated California’s Unfair Competition Law, which protects consumers from deceptive or misleading business practices. This law ensures that companies cannot make false promises or secretly change policies that could harm users.
This was followed by plaintiffs' demands to order LinkedIn to stop the practice or pay $1,000 apiece under the Stored Communication Act, a federal regulation that protects such private digital exchanges as emails or messages.
LinkedIn's Response
In response to the allegations, LinkedIn has dismissed the claims, stating, "These are false claims with no merit."
However, the platform has acknowledged in prior communications that user data has not been shared for AI training purposes in the UK, the European Economic Area (EEA), and Switzerland, suggesting region-specific policies regarding data privacy.
AI Investments and Broader Implications
The lawsuit was filed just hours after U.S. President Donald Trump announced the Stargate Project, a $500 billion AI infrastructure initiative backed by Microsoft, OpenAI, Oracle, and SoftBank. Some analysts speculate that LinkedIn's alleged data practices could have contributed to advancements in the AI model within Microsoft's broader AI strategy.
The professional networking site, which boasts over 1 billion users globally, with nearly a quarter based in the U.S., generated $1.7 billion in revenue from Premium subscriptions in 2023 and has been rapidly introducing AI-driven features to enhance user experience.
What’s Next?
Lawyers say this could be a landmark case determining how technology giants manage users' data in the age of AI prompts. It really raises questions about transparency and consent in data utilization practices. If LinkedIn is found liable, an order to rewrite its privacy policies and other injunctions could mean tens of millions of dollars in damages.
Meanwhile, concerned users and privacy advocates urge stronger regulatory oversight of consumer data protection laws, which would help prevent the situation from recurring in the days to come.
