Circuit Split on Online Jurisdiction

Circuit Split on Online Jurisdiction

Freshfields

A circuit split between the Third and Ninth Circuits has created uncertainty around online jurisdiction for e-commerce platforms. In Briskin v. Shopify, the Ninth Circuit ruled that Shopify's virtual contacts with a state could establish jurisdiction, contrasting with the Third Circuit's stricter interpretation.

This legal ambiguity could increase compliance costs and litigation risks for platforms operating across multiple U.S. states.

Why it matters: The evolving jurisdictional landscape poses operational and legal challenges for Shopify. Navigating these complexities will be critical to avoiding costly litigation and maintaining compliance.