## Facts

- Evelyn Clark, an Illinois resident, bought a credit-report product over the internet from ConsumerInfo.com (Consumer Info) and Experian Information Solutions, Inc. (Experian), businesses operating from California.
- Clark accessed defendants’ websites from her computer in Illinois and paid by credit card from Illinois.
- Defendants maintained the websites on servers located in California.
- Clark alleged she was led to believe she could print the credit report at home, but she could not do so.
- Clark also alleged she was unknowingly enrolled in, and charged for, an automatically renewing credit-monitoring service that carried significant recurring fees.
- Clark sued Consumer Info and Experian in the U.S. District Court for the Northern District of Illinois, asserting deceptive trade practices and related claims based on the online transaction.
- A key dispute was whether Illinois consumer-protection law or California consumer-protection law applied; Clark sought application of California law because a California provision (unlike Illinois law) would permit a “private attorney general” type claim.

## Issues

1. Under Illinois choice-of-law rules, should Illinois or California consumer-protection statutes govern claims by an Illinois resident arising from an online purchase from California-based defendants whose websites and servers were located in California?
2. Does the defendants’ California location (including website servers) justify applying California consumer statutes that would give the plaintiff broader representative enforcement options than Illinois law?

## Decision

- The court applied Illinois choice-of-law rules and determined Illinois law governed the consumer-protection dispute arising from Clark’s online transaction.
- The court declined to apply California consumer-protection statutes, including the California provision that would have allowed Clark to proceed in a private attorney general role.
- The case could go forward, as pleaded, under Illinois consumer-protection law and related theories.

## Legal Principles

- A federal court hearing state-law claims applies the forum state’s choice-of-law rules.
- Illinois uses a “most significant relationship” approach, weighing contacts such as the place of injury, the place of conduct causing the injury, the parties’ residences/places of business, and where the parties’ relationship is centered.
- In cases alleging economic harm from a consumer transaction, the place of injury is commonly the consumer’s home state where the financial impact is felt.
- For online transactions, the location of website servers and other internet infrastructure may be a contact, but it does not automatically control where the injury occurred or where the relationship is centered.
- The availability of broader remedies under another state’s law does not, by itself, determine the governing law; the analysis turns on contacts and state interests tied to the transaction and alleged injury.

## Conclusion

Because Clark was an Illinois resident who entered the transaction from Illinois and alleged financial harm there, the court concluded Illinois had the most significant relationship to the dispute and applied Illinois consumer-protection law rather than California law, preventing Clark from using California’s private attorney general mechanism in this Illinois-filed action.


Evelyn Clark v. Experian Information Solutions, Inc., 2005 U.S. Dist. LEXIS 8243 (2005)