Overstock Call Recording Class Action Lawsuit Filed by Customer

An Overstock.com customer has filed a class action lawsuit accusing the online retailer’s insurance company of secretly recording customer telephone calls in violation of California state law.

The laws on recording customer telephone calls vary by state regarding wiretapping and making copies of conversation. In California, Penal Code 632.7 prohibits “[e]very person who, without the consent of all parties to a communication…intentionally records, or assists in the…intentional recordation of, a communication transmitted between…a cellular radio telephone and a landline telephone.”

However, lead plaintiff Justin Maghen alleges in the Overstock class action lawsuit that this is exactly what occurred when he contacted a representative from the Overstock.com Insurance Agency. The Overstock call recording class action lawsuit alleges that during the course of conversation, the man asked the representative whether or not the call was being recorded and was informed that was correct. The problem was that he had allegedly “discussed highly personal and private financial information” before he was alerted to the fact that the call was being recorded.

The Overstock class action lawsuit goes on to allege that Overstock.com Insurance employees engage in call recording on a widespread basis. As such, the class action lawsuit seeks to certify a Class of all Californians who may have had their cell phone calls recorded in the past year.

A similar case may be made regarding those who were contacted on their landline; however, in order to satisfy pleading standards, the Class would be restricted to mobile phones and focus on the violation of state Penal Code 632.7. That law provides for a reported fine of up to $5,000 per violation made by a defendant such as Overstock.

Call recording class action lawsuits have come up in recent years, particularly in California where there is specific protections for cell phone users. However, they are only restricted in general in 11 other states.

The plaintiff is represented by class action lawyers Matthew M. Loker of Kazerouni Law Group APC, Joshua B. Swigart of Hyde & Swigart and Todd M. Friedman of the Law Offices of Todd M. Friedman PC.

The Overstock.com Call Recording Class Action Lawsuit is Justin Maghen v. Overstock.com Insurance Agency, Case No. 14-cv-03818, in the U.S. District Court for the Central District of California.