— A Tesla privacy class action lawsuit has been sent to arbitration based on documents the plaintiff signed when he purchased his Model Y.
The Tesla privacy lawsuit was filed by Tesla Model Y owner Henry Yeh who alleges cameras in Tesla vehicles captured “highly-invasive videos and images of the cars' owners, which Tesla employees were able to access."
Between 2019 and 2022, Tesla employees allegedly shared video footage for their own personal reasons.
The Tesla privacy class action lawsuit was later amended to include Yeh's infant son, G.Y.
The lawsuit refers to the “substantial risk” that Yeh and G.Y. were recorded when Yeh's vehicle was in “Sentry” mode and Tesla employees had access to those recordings for improper purposes.
Motion to Compel Arbitration — Tesla Privacy Lawsuit
Tesla filed a motion to compel arbitration and argued plaintiff Yeh was bound by the arbitration terms he agreed to when he ordered his Tesla online. He allegedly was also bound to the arbitration agreement when he signed the retail installment sale contract.
In addition to arguing Yeh's claims must be arbitrated, Tesla argued Yeh's claims failed for lack of Article III standing because Yeh failed to allege any video footage from his Tesla was improperly accessed, shared or that he suffered any injury.
Tesla referenced the agreement signed by the plaintiff.
“Agreement to Arbitrate: By signing below, you agree that, pursuant to the Arbitration Provision on page 7 of this contract, you or we may elect to resolve any dispute by neutral, binding arbitration and not by a court action. See the Arbitration Provision for additional information concerning the agreement to arbitrate.”
The judge granted Tesla's motion to compel as to the claims of both Yeh and G.Y., which must be arbitrated.
In addition, the judge "rejects Plaintiffs' reliance on the fact that G.Y., as a minor, is incapable of entering into a contract and can, as a matter of statute, disaffirm a contract."
The Tesla privacy lawsuit was filed in the U.S. District Court for the Northern District of California: Henry Yeh v. Tesla Inc.
The plaintiffs are represented by Fitzgerald Joseph LLP, and Blood Hurst & O'Reardon, LLP.
