Federal Court Dismisses Class Action Lawsuit Against Marketing Email Tracking Pixels

Class Action Lawsuit Over Marketing Email Tracking Pixels Dismissed by Federal Court

In a recent decision by the U.S. District Court in Arizona, a lawsuit against Pacific Sunwear of California (PacSun) regarding the use of email tracking pixels was dismissed, marking a significant moment for email marketers. This ruling contributes to a series of similar decisions across multiple states suggesting that Arizona’s Telephone, Utility, and Communication Service Records Act (TUCSRA) does not apply to email marketing practices, potentially establishing a prevalent trend in the legal landscape.

Over the past couple of years, there has been a surge in lawsuits aimed at companies utilizing marketing pixels, software snippets that can track individuals across different websites. In Arizona, the focus of such litigations has been primarily on email pixels—a tool embedded in marketing emails to provide marketers with insights on email engagement. These cases have been primarily centered around TUCSRA.

Introduced in 2007, TUCSRA prohibits the acquisition of public utility, telephone, or communication service records of any state resident without consent. The Act extends to anyone, permitting damages of no less than one thousand dollars per violation. The lawsuit against PacSun alleged that hidden spy pixel trackers within PacSun’s marketing emails captured recipient information without permission, including email open rates, IP addresses, and link click activity. The plaintiff sought to form a class action including all Arizona residents who had interacted with PacSun’s emails.

After PacSun failed to dismiss the lawsuit on jurisdictional grounds, a motion for judgment on the pleadings argued that TUCSRA did not apply to PacSun or the data it collected. In the court’s decision on April 16, 2025, it declared that PacSun, as a retailer using email for marketing, was not considered a communication service provider under TUCSRA. Furthermore, the information gathered through PacSun’s tracking pixels did not fall under the category of communication service records safeguarded by TUCSRA, leading to a judgment in favor of PacSun.

This ruling serves to clarify the extent of TUCSRA’s applicability, which has seen limited interpretation until recently. While a growing number of trial courts have rejected TUCSRA claims against email marketers, appellate court rulings are still pending. Until appellate courts provide binding precedents, differing interpretations and outcomes remain possible on TUCSRA cases involving email tracking pixels.

Despite the recent rulings in favor of defendants in TUCSRA cases, courts have varied in their rationale for dismissal, raising issues related to jurisdiction, preemption, and the interpretation of the statute. PacSun’s victory in the Arizona federal court may discourage future TUCSRA claims, yet the absence of appellate authority leaves room for further legal debates on this matter.