Charlotte’s Web Lawsuit Accuses CBD Co. of ‘Highly Egregious’ Online Privacy Abuses

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A proposed class action alleges Charlotte’s Web has illegally eavesdropped on visitors to its website via secretly embedded chatbot code that allows the CBD and hemp company to record transcripts of private conversations without consent. 

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The 11-page lawsuit accuses Charlotte’s Web of violating the California Invasion of Privacy Act by embedding code into iCharlotte.com that allows the company, through the site’s chatbot function, to “covertly intercept and monitor” a user’s chat conversations in real time, without their knowledge or permission. 

The proposed class action calls Charlotte’s Web’s alleged disregard for online user privacy “highly egregious,” as website visitors often disclose sensitive personal data via the chat feature while unaware that everything they share will be collected and used for targeted advertising purposes. 

“This invasive practice not only compromises individuals’ privacy but also subjects them to relentless advertising campaigns across multiple platforms,” the case says, alleging Charlotte’s Web has left consumers exposed to myriad privacy risks given the wide range of entities with whom their information is shared. 

Once a chat takes place on the Charlotte’s Web site, third party Ochatbot, which provides the website’s chat functionality, uses several digital surveillance tools to “monitor user behavior,” recording and storing transcriptions of each conversation and compiling them into reports, the filing claims. According to the case, Charlotte’s Web and Ochatbot use the data collected from chat conversations, such as a user’s chat details, IP address, geolocation, browsing history and search history on the website, in conjunction with other data from other sources for business and commercial purposes, including for AI and machine learning. 

“These extensive data sharing arrangements leave consumers exposed to potential privacy risks, as their personal information is shared with a wide range of entities without clear limitations or safeguards, let alone the consent of users,” the filing says. 

The complaint relays that Ochatbot’s privacy policy, which is not disclosed to iCharlotte.com users, gives the company carte blanche to share and sell personal information with other third parties without consent. Per the case, this opens the door for users’ personal data to be analyzed for behavioral advertising purposes. 

The lawsuit looks to cover all persons in California who, within the statute of limitations period, communicated with Charlotte’s Web via the chat feature on its website using “cellular or landline telephony” and whose communications were recorded and/or eavesdropped upon without prior consent.

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