Trafficschool.Com, Inc. v. Edriver Inc.

653 F.3d 820 (9th Cir. 2011)

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Nature of the Case

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Facts

Ds own and manage DMV.org, a for-profit website with a mission to save you 'time, money and even a trip to the DMV!' Consumers visit DMV.org for help renewing driver's licenses, buying car insurance, viewing driving records, beating traffic tickets, registering vehicles, even finding DUI/DWI attorneys. Some visitors mistakenly believe the site is run by their state's department of motor vehicles (DMV). P markets and sells traffic school and driver's ed courses directly to consumers. They also compete with DMV.org for referral revenue. P claimed that D violated federal and state unfair competition and false advertising laws by actively fostering the belief that D is an official state DMV website, or is affiliated or endorsed by a state DMV. P sued D and the district court held that D violated section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), but rejected P's claim under California's unfair competition statute. The court issued an injunction ordering D to present every site visitor with a splash screen bearing a disclaimer. The court denied monetary relief and declined to award attorney's fees. The court held that P failed to prove that it suffered an injury in fact and lost money or property as a result of D's actions. Both sides appeal.