Herskowitz v. Apple, Inc.

301 F.R.D. 460, 2014 WL 3919900
CourtDistrict Court, N.D. California
DecidedAugust 7, 2014
DocketCase Nos.: 12-CV-02131-LHK 12-CV-03124-LHK
StatusPublished
Cited by15 cases

This text of 301 F.R.D. 460 (Herskowitz v. Apple, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Herskowitz v. Apple, Inc., 301 F.R.D. 460, 2014 WL 3919900 (N.D. Cal. 2014).

Opinion

ORDER DENYING PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION

LUCY H. KOH, United States District Judge

In this consolidated litigation, Plaintiffs Robert Herskowitz (“Herskowitz”) and Phoebe Juel (“Juel”), individually and on behalf of those similarly situated (collectively, “Plaintiffs”), allege that Defendant Apple, Inc. (“Apple”) routinely and unlawfully charges its “e-Store” customers more than once for the same products in violation of the consumer agreements governing those transactions and state law. Second Am. Consol. Compl. (“SAC”) ECF No. 77-1. Pending before the Court is Plaintiffs’ Motion for Class Certification, in which Plaintiffs move to certify three classes. (“Mot.”) ECF No. 105-4. Apple has filed an Opposition, (“Opp’n”) ECF No. 156-4, and Plaintiffs have filed a Reply, (“Reply”) ECF No. 169-4. The Court held a hearing on the Motion on July 31, 2014. ECF No. 198. Having considered the submissions of the parties, the oral arguments presented at the hearing, and the record in this case, the Court hereby DENIES Plaintiffs’ Motion for Class Certification.

[465]*465I. BACKGROUND

A. Factual Background

1. The e-Stores

Apple’s “iTunes Store” is a software-based online digital-media store from which customers can purchase music and videos, among other things. (“Answer”) ECF No. 68 ¶ 12. Apple also operates an “App Store,” a digital-application distribution platform that allows users to browse and purchase applications (“apps”) for iPhones, iPads, and iPod Touch devices. Id. In addition, Apple operates a “Mae App Store,” which allows users to purchase and download applications for personal Mac computers. Id. ¶ 13. Finally, Apple operates an “iBookstore,” which is part of “iBooks,” Apple’s e-book application. Id. ¶ 14. The iBookstore allows users to purchase, download and read e-books on iPhones, iPads, and iPod Touch devices. Id. Plaintiffs refer to the iTunes Store, App Store, Mac App Store, and iBookstore collectively as the “e-Stores.” SAC ¶ 11.

Use of the Apple e-Stores is governed by Apple’s standard “Terms and Conditions,” (“Agreement”) ECF No. 106-4. See Mot. at 4. Plaintiffs claim, and Apple does not dispute, that customers cannot use the e-Stores without first agreeing to the Agreement. Id. at 4; Opp’n at 3. The Agreement contains a California choice-of-law provision. Agreement at 11. The Agreement allows Apple to charge customers “for any products purchased.” Id. at 1. Until October 2011, the Agreement allowed customers to download purchases only once, id. at 10, though once downloaded, purchases could be used on up to five authorized devices, id. at 5. Customers were therefore charged again for every download of a previously purchased product.1 In October 2011 Apple launched iTunes in the Cloud, which permits customers to download for free all previously purchased products, with limited exceptions. Mot. at 4; Opp’n at 4. The Agreement for all e-Stores provides that “[a]ll sales and rentals of products are final.” Agreement at 1. The Agreement also provides, however, that “if technical problems prevent or unreasonably delay delivery of your product, your exclusive and sole remedy is either replacement or refund of the price paid, as determined by Apple.” Id. at 2.

Because prior to October 2011 customers could be charged again for products that they had previously purchased, Apple had a number of technical mechanisms in place to prevent double-billing errors. Mot. at 5:2-3; accord Opp’n at 4-5; 6-7. Most significantly for present purposes, when a customer clicked “buy” to purchase a product, the iTunes system was supposed to check if that customer had previously purchased that same product. Mot. at 5. If the customer had previously purchased the product, a warning “pop-up” was supposed to appear informing the customer that she had already purchased the product. Id.-, see also (“Pop-up Ex.”) Reply Ex. U, ECF No. 170-21. Once the pop-up appeared, the customer had to either click “buy” again or “cancel.” See Pop-up Ex.; Opp’n at 4. Plaintiffs allege that Apple’s double-billing prevention mechanisms — including the pop-up — did not always function properly. Mot. at 5. Moreover, Plaintiffs allege that Apple intentionally suspended the pop-up between December 24 and 26, 2008. Id. at 7. Apple does not contest this claim, and additionally states that the pop-up was disabled on certain hours on December 25, 2009, and December 25,2010. Opp’n at 4.2

2. Double-Billing for a Single Paid Download of the Same Product

Plaintiffs allege that on October 26, 2010, Herksowitz ordered and received a single download of a song titled “Whataya Want from Me” by Adam Lambert. Mot. at 11. On December 2, 2010, Apple charged Her-skowitz’s credit card twice for “Whataya Want from Me.” Id. at 12. That is, Apple charged Herskowitz for $2.58 when a single purchase should have cost $1.29. Id. Later on December 2, 2010, Herskowitz reported the double-billing to Apple. Id. In response, Apple told Herskowitz that Apple [466]*466would not refund the second charge, stating: ‘Tour request for a refund for ‘Whataya Want from Me’ was carefully considered; however, according to the iTunes Store Terms of Sale, all purchases made on the iTunes Store are ineligible for a refund.” Id.

Apple claims that its records show that on October 26, 2010, Herskowitz ordered “Wha-taya Want from Me” twice and received two downloads. Decl. of Roozbeh Ghaffari (“Ghaffari Deck”) ECF No. 156-12 ¶ 4. Apple argues that this shows that Herskowitz must have clicked “buy” twice. Opp’n at 10. Herskowitz disputes these claims, alleging that he clicked “buy” only once and received only one download of “Whataya Want from Me.”3 See (“Herskowitz Dep.”) ECF No. 170-6 at 227:21-24 (“So this was only one copy on my computer. I never even thought by any way there could be two copies. Because A, I never saw two copies, and B, I never purchased two copies.”). Plaintiffs allege that Apple has double-billed millions of users in this manner, and then refused to refund the overcharges based on Apple’s purported “no refund” policy. SAC ¶ 29. Plaintiffs allege that double-billing has continued past October 2011, though the launch of iTunes in the Cloud should have meant that customers can re-download previously purchased products for free. Mot. at 8.

3. Charging Customers for Products Not Delivered, and Double-Billing to Provide Products in a Usable Form

On December 31, 2010, Juel commenced a purchasing session to buy music on the iTunes Store. Id. at 12. During the session, Juel clicked “buy” to purchase a song titled “Auld Lang Syne” by the Barenaked Ladies. SAC ¶¶ 49-50. The song started to download at 7:06 p.m. (Eastern). Id. Plaintiffs claim the song never appeared in Juel’s iTunes library. Id. Consequently, Juel clicked “buy” again at 7:09 p.m. SAC ¶ 53. This led to a second download, which resulted in the song appearing in Juel’s iTunes library. Id. Juel was charged for both downloads. Id. ¶ 54. Apple did not provide Juel with a refund. Id. Apple claims, and Plaintiffs do not contest, that Juel did not contact Apple for a refund or replacement before clicking “buy” a second time. Opp’n at 9; (“Juel Dep.”) ECF No.

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Cite This Page — Counsel Stack

Bluebook (online)
301 F.R.D. 460, 2014 WL 3919900, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herskowitz-v-apple-inc-cand-2014.