Is Pandora a Music Lender? Michigan Supreme Court to Decide

When you open up a music streaming app like Pandora, are you borrowing the music (like a video rental) or just tuning in (like a radio station)? Federal and Michigan state courts are weighing this issue right now. And the outcome could mean big changes in consumer protection.


Last month, the state's top court held a special hearing in Ottawa County at the request of the 9^th Circuit Court of Appeals. The 9^th Circuit is wrestling with Michigan consumer protection laws, and their application in modern technology.

Pandora is a popular music streaming app used to listen to music on the go. The site describes its mission:

“With Pandora you can explore this vast trove of music to your heart's content. Just drop the name of one of your favorite songs, artists or genres into Pandora and let the Music Genome Project go. It will quickly scan its entire world of analyzed music, almost a century of popular recordings - new and old, well known and completely obscure - to find songs with interesting musical similarities to your choice. Then sit back and enjoy as it creates a listening experience full of current and soon-to-be favorite songs for you.”

But when you use Pandora, are you borrowing the music you are listening to? Peter Deacon and his lawyers say yes. He filed a class action lawsuit against Pandora for disclosing his and other Michigan residents' names, listening history, bookmarked artists, and bookmarked songs to social media (specifically Facebook) so friends could find them. He says by doing so Pandora violated the Michigan Video Rental Privacy Act and the Michigan Consumer Protection Act.

The case is in federal court because Deacon sued Pandora where it operates – in California. But now, the 9^th Circuit Court of Appeals has brought the case back home. The court's February 19^th order says:

“There appears to be no case law from any Michigan court interpreting the meaning of these terms [renting, rents, lending, and borrows] or the VRPA in general. Thus the present appeal rests on a novel issue of state law that has not been resolved by the Michigan courts and is not controlled by Michigan Supreme Court precedent. Moreover, Deacon's appeal presents significant issues, with important public policy ramifications.”

If Deacon wins his case, Pandora and other music streaming programs will have to comply with the VRPA. But how the law applies will depend on the Michigan Supreme Court's interpretation of a 1987 law on 21^st century technology. Since many listeners don't even realize their information is being shared, the courts' decisions could take a big step in protecting Michigan consumers' online privacy. Still, only time will tell how the court will rule.

Dani K. Liblang is a consumer protection attorney at The Liblang Law Firm, P.C., in Birmingham, Michigan. If a company has violated your privacy, contact the Liblang Law Firm for a free consultation.