San Francisco Chronicle

Lawsuit against Yelp is revived

- By Bob Egelko

A state appeals court has revived a lawyer’s suit against Yelp for secretly recording its telephone sales pitches to him, ruling that California law bars recording of either side of a phone conversati­on without both parties’ consent.

San Francisco attorney Eric Gruber said he received a dozen or more calls from sales representa­tives of the businessre­viewing company between March 2014 and July 2016, trying to sell him advertisin­g space. Gruber said he discussed some confidenti­al matters with the representa­tives, one of whom was a friend. He sued Yelp after learning that the company had recorded the calls.

Yelp explained that it records all of its sales calls for training purposes, but usually tapes only its employee

and not the prospectiv­e customer, and followed that practice with Gruber. Because Gruber’s voice had not been recorded, San Francisco Superior Court Judge Mary Wiss ruled that Yelp had not violated the California Invasion of Privacy Act, a 1967 law that prohibits recording phone calls and other confidenti­al conversati­ons without the consent of all participan­ts.

But the First District Court of Appeal in San Francisco ruled Wednesday that the law requires consent from all participan­ts in a conversati­on even if only one side is being recorded.

California privacy laws “make no distinctio­n between the speaker and the listener or between the caller and the call recipient,” but define all of them as “parties” who must agree to a recording, Justice Teri Jackson said in the 30 ruling.

The law must be interprete­d to cover cases like this one, Jackson said, because Yelp’s employees were recorded discussing informatio­n they had learned from Gruber.

“The recordings revealed firsthand and in real time their understand­ing of or reaction to Gruber’s words,” effectivel­y making his side of the discussion available on tape, Jackson said.

The ruling “upholds consumers’ right to privacy in California,” Gruber’s lawyers said.

Attorneys for Yelp could not be reached for comment.

Eighteen news organizati­ons — including the California Newspaper Publishers Associatio­n, whose members include The Chronicle — filed arguments asking the court to allow reporters to use recorders for notetaking during interviews without asking the interviewe­es for consent. Jackson said the court did not need to address that issue in the Yelp case.

Consumer advocates filed arguments supporting Gruber.

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