On May 1, 2025, we filed a proposed class action against Dialpad in San Francisco Superior Court.
Dialpad provides digital telephone services to businesses around the world. The lawsuit alleges that Dialpad’s telephone platform uses artificial intelligence technology to listen in on phone calls between consumers and the businesses that use Dialpad’s services, in violation of the California Invasion of Privacy Act (“CIPA”).
The lawsuit was filed on behalf of a San Francisco resident, Gary Freund, who alleged that Dialpad eavesdropped on his customer service phone calls with Warby Parker. The plaintiff is asking the Court for permission to represent a class of similarly situated California residents.
The lawsuit has already received press coverage, with one commentator noting that, “[t]he plaintiff’s core argument is simple but powerful: A consumer should not have to wonder whether a third-party AI system is analyzing their voice, extracting their tone, and using their words to benefit other companies.”
What is the California Invasion of Privacy Act?
California law makes it unlawful to listen in on a person’s phone calls without the consent of all participants, or to use the contents of those communications for any purpose. Cal. Pen. Code § 631(a). A person whose privacy has been violated is entitled to statutory damages in a minimum of $5,000 per violation. Cal. Pen. Code § 637.2.
What is Dialpad alleged to have done?
The lawsuit alleges that Dialpad’s call center software uses consumer conversations with other businesses to train Dialpad’s AI models. Dialpad allegedly boasts that its software was “[b]uilt on a state-of-the-art speech recognition model that’s analyzed over 5 billion minutes of voice and message data” from “actual calls.” Dialpad’s business partners, whose customer service calls were allegedly swept up by the AI software, are believed to include companies like Randstad, Remax, Mizuho, Cigna, T-Mobile, Johns Hopkins, Motorola, Warby Parker, Panera Bread, and Netflix. The Court has not yet decided whether the Plaintiff or Defendant are correct. Click here to read the complaint.
What happens next?
After a lawsuit is filed, the defendant has the opportunity to ask the Court to dismiss the case. The Court will decide whether the complaint’s allegations, if true, would state a violation of law. If so, the case is allowed to proceed. Then, the parties engage in discovery. Eventually, the plaintiff must ask the Court’s permission to have the case proceed on a class action basis. If the Court agrees, the members of the class will be notified and will have an opportunity to opt out if they do not wish to be bound by the Court’s decisions in the class lawsuit.
How do I join?
If you believe your call contents have been accessed by Dialpad’s AI software, please feel free to contact us for possible legal assistance. There is no money currently available in this lawsuit. If money later becomes available and you are a member of the class, you will receive notice as approved by the Court at that time.