Domino's Class Action Lawsuit: Pizza Chain Accused of Recording Calls Without Consent

Case Overview: A class action lawsuit has been filed against Domino's, alleging that the pizza chain recorded customer phone calls without consent using an AI-powered voice assistant developed by ConverseNow Technologies. The lawsuit claims this practice violates the California Invasion of Privacy Act.

Consumers Affected: Customers in California who placed phone orders with Domino's.

Court: U.S. District Court for the Eastern District of Michigan

Domino’s Pizza Inc. is at the center of a proposed class action lawsuit filed by a California customer who claims that the pizza chain recorded phone orders without customer consent. 

According to the complaint, Domino’s used an artificial intelligence-powered voice assistant developed by ConverseNow Technologies Inc. to process customer orders over the phone, allegedly violating the California Invasion of Privacy Act (CIPA).

Domino's Recorded Phone Orders Without Consent, Lawsuit Claims

Plaintiff Daniel Padilla claims that Domino’s aided ConverseNow in wiretapping and recording customer orders, intending to use the recordings to train and improve the capabilities of the voice assistant technology.

Under the California Invasion of Privacy Act, it is illegal to record phone calls without consent from all parties involved. The lawsuit alleges that Domino’s and ConverseNow violated this statute by failing to notify or obtain consent from customers during order placements, an omission that, according to the complaint, constitutes an illegal wiretap under state law.

Customer Unaware of AI Voice Assistant Recording Order

On August 30, 2024, Padilla called a Domino’s restaurant in Delano, California, to place an order for pizza delivery. When he dialed the listed number, an automated voice answered with the greeting, “Thank you for calling Domino’s. How can I help you today?” Padilla placed his order without realizing that the automated system he was speaking to was actually powered by ConverseNow’s AI voice assistant technology.

According to the complaint, the AI system recorded and processed Padilla’s order in real-time. Padilla claims that he was not informed that his call was being recorded, nor was he made aware that a third party was involved in the call.

Domino's Use of AI Voice Assistant Raises Privacy Concerns

Domino’s began integrating ConverseNow’s AI-powered voice assistant into its phone ordering system in recent years, and the technology is now reportedly active in over 120 locations nationwide, including stores in California. This AI assistant autonomously handles customer calls, helping Domino’s staff by taking orders, upselling, and processing various requests.

According to the complaint, these recordings are used by ConverseNow to enhance the AI’s accuracy and effectiveness. By analyzing customer conversations, ConverseNow reportedly aims to improve the AI’s ability to understand natural language, respond accurately to orders, and optimize upselling strategies for Domino’s. However, the lawsuit contends that customers were never informed of this additional use for their recorded calls. The plaintiff argues that while these recordings may aid in refining the AI system, the lack of customer consent violates California privacy laws.

The complaint also claims that customers are unaware of ConverseNow’s role in these transactions. The voice assistant is designed to simulate a conversation with a Domino’s representative, leading customers to believe they are speaking directly with a Domino’s employee rather than a third-party system. 

This design, the lawsuit states, creates a scenario where customers are unknowingly recorded and monitored by ConverseNow’s system without any notice or consent to the involvement of an outside party.

Domino's and ConverseNow Face Similar Lawsuits Over Privacy Violations

This isn’t the first time Domino’s and ConverseNow have faced legal action. Earlier this year, the companies were hit with a similar class action lawsuit in an Illinois federal court, alleging violations of the Illinois Biometric Information Privacy Act (BIPA). 

BIPA is a privacy law in Illinois that protects individuals' biometric data, such as voiceprints, fingerprints, and facial recognition data, by requiring companies to obtain informed consent before collecting or using this type of personal information. Similar to the California Invasion of Privacy Act (CIPA), which protects residents from unauthorized recording of their conversations, BIPA aims to safeguard biometric information specifically, emphasizing the importance of transparency and consent.

The plaintiffs in the Illinois lawsuit allege that Domino’s, through ConverseNow’s virtual ordering assistants, collects and stores customers’ unique voiceprints when they call to place orders. They claim this practice occurs without the knowledge or consent of the callers, a direct violation of Illinois’ stringent privacy protections under BIPA.

In the Domino’s call recording class action lawsuit, Padilla aims to represent all persons in California whose communications were intercepted and recorded by ConverseNow, along with a subclass of California residents who called Domino’s, and whose communications were  intercepted and recorded by ConverseNow.

He seeks damages for affected customers as well as an injunction to stop Domino’s from recording calls without proper disclosure and consent.

Case Details

• Lawsuit: Padilla v. Domino’s Pizza Inc. and ConverseNow Technologies, Inc.
• Case Number: 2:24-cv-12812-SJM-EAS
• Court: U.S. District Court for the Eastern District of Michigan

Plaintiffs' Attorneys

• E. Powell Miller (The Miller Law Firm, P.C.)
• Joseph I. Marchese, Alec M. Leslie, and Caroline C. Donovan (Bursor & Fisher, P.A.)

Have you placed a phone order with Domino's recently? Share your thoughts on this lawsuit in the comments below.