Hirlinger v. WP Company LLC

CourtDistrict Court, N.D. California
DecidedJune 10, 2024
Docket3:23-cv-05963
StatusUnknown

This text of Hirlinger v. WP Company LLC (Hirlinger v. WP Company LLC) 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
Hirlinger v. WP Company LLC, (N.D. Cal. 2024).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 JOSEPH HIRLINGER, et al., Case No. 23-cv-05963-AMO

8 Plaintiffs, ORDER GRANTING MOTION TO 9 v. DISMISS

10 WP COMPANY LLC, Re: Dkt. No. 12 Defendant. 11

12 13 This case concerns allegations of false advertising. Before the Court is Defendant WP 14 Company LLC’s motion to transfer venue or, in the alternative, to dismiss the Complaint. The 15 matter is fully briefed and suitable for decision without oral argument. Accordingly, the Court 16 VACATES the hearing set for June 27, 2024. See Civil L.R. 7-6. Having read the parties’ papers 17 and carefully considered their arguments and the relevant legal authority, the Court hereby 18 GRANTS the motion to dismiss and does not reach the motion to transfer for the following 19 reasons. 20 I. BACKGROUND1 21 Plaintiffs Joseph Hirlinger and Guy Ball are residents of California. Compl. ¶¶ 18-19. 22 Defendant WP Company LLC (“TWP”) is a Delaware corporation with its headquarters in 23 Washington, D.C. Compl. ¶ 20. TWP sells digital subscriptions to the newspaper it publishes, 24 The Washington Post. See Compl. ¶ 28. TWP advertises its subscriptions with strikethrough 25 prices (e.g., “$120”) alongside substantially lower prices. Compl. ¶ 4. For example, when 26

27 1 The Court accepts Plaintiffs’ allegations in the complaint as true and construes the pleadings in 1 Hirlinger purchased an annual All-Access Digital Subscription at the price of $40 for one year, 2 adjacent to the $40 price, the advertisement displayed a higher price in strikethrough typeface: 3 $400). Compl. § 11. Similarly, when Ball purchased an annual All-Access Digital Subscription 4 at the price of $40 for one year, the advertisement displayed a higher price in strikethrough 5 typeface: $420). Compl. 4] 12. WP never or almost never actually advertised any of its digital 6 || subscriptions at the strikethrough price shown in the advertisement, which improperly induced 7 them to purchase subscriptions that they otherwise would not have and to pay more for those 8 subscriptions than they otherwise would have. Compl. 13-14. 9 TWP includes language explaining its introductory discount on the Checkout Page — e.g., 10. || “$40 for one year, then $120 every year thereafter.” See Compl. { 47. Plaintiffs reproduce the 11 following screenshot in their Complaint: = 12 The Washington Post ee

All-Access Digital 2 15 Plan | $40 for one year, then $120 every year thereatter. Cancel anytime. a 16 Bue today ise somes nn 840

5 “erent . ose . 5 12 to sign nto aur 19 20 21 Compl. §/ 47. As discussed below, this image represents only a portion of the full webpage, which 22 reads further, 23 By subscribing, you agree to the above terms, the Terms of Service, Digital Products Terms of Sale & Privacy Policy. You agree to be 24 charged $40 for one year, then $120 every year thereafter. Sales tax may apply. Your subscription will renew automatically until 25 you cancel. You can cancel by selecting “Cancel Subscription” under “Subscription & Billing” in your account. To avoid future charges, 26 you must cancel before your next renewal date. No refunds for partial 37 periods unless required by law.

28 See Iyer Decl. 4] 7 & Ex. 2 (emphasis in original). Linked within that paragraph is TWP’s “Terms

1 of Sale for Digital Products” (“Terms of Sale”), which states in part, “For example, you authorize 2 us to charge your Payment Method the promotional rate disclosed on the subscription screen for 3 the agreed upon promotional Billing Periods (if applicable) and the regular subscription rate in 4 subsequent Billing Periods, each with applicable taxes.” Iyer Decl. Ex. 1, at § 3(b). Section 4 also 5 provides, “If your subscription includes a promotional rate, you will be charged the promotional 6 rate for the agreed upon number of Billing Periods and upon completion of those Billing Periods, 7 your subscription will continue to automatically renew at the regular rate.” Id. § 4. 8 Plaintiffs filed this putative class action in the California Superior Court for the County of 9 San Francisco on October 6, 2023, on behalf of themselves and others similarly situated. Compl. 10 ¶¶ 17, 52-65. Defendant removed the case to this Court on November 17, 2023. ECF 1. 11 Plaintiffs’ Complaint enumerates the following causes of action: Violations of False and 12 Misleading Advertising Law (“FAL”) (California Bus. & Prof. Code §§ 17500, et seq.); 13 (2) violations of Unfair Competition Law (“UCL”) (California Bus. & Prof. Code §§ 17200, et 14 seq.); (3) violations of Consumers Legal Remedies Act (“CLRA”) (California Civil Code §§ 1750, 15 et seq.); and (4) violations of the District of Columbia Consumer Protection Procedures Act 16 (“CPPA”), (D.C. Code §§ 28-3901, et seq.). TWP filed the instant motion to transfer, or in the 17 alternative, to dismiss, on December 22, 2023, and simultaneously filed a request for judicial 18 notice. ECF 12; ECF 12-4. 19 II. DISCUSSION 20 The Court takes up TWP’s contested request for judicial notice before turning to the merits 21 of its motion to dismiss. 22 A. Request for Judicial Notice 23 Defendant WP Company, LLC (“TWP”) requests that the Court take judicial notice of the 24 following: (1) a publicly available webpage on TWP’s website pursuant to Rule 201 of the Federal 25 Rules of Evidence: TWP’s Terms of Sale for Digital Products (“Terms of Sale”) at 26 https://www.washingtonpost.com/information/2022/06/17/terms-sale-digital-products/ (Iyer Decl., 27 Ex. 1); and (2) a copy of the webpage presented to a consumer purchasing an annual digital 1 oppose TWP’s request. 2 “Generally, district courts may not consider material outside the pleadings when assessing 3 the sufficiency of a complaint.” Khoja v. Orexigen Therapeutics, Inc., 899 F.3d 988, 998 (9th Cir. 4 2018). There are two exceptions. First, under Federal Rule of Evidence 201, a court may take 5 judicial notice of a fact “not subject to reasonable dispute because it . . . can be accurately and 6 readily determined from sources whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 7 201(b)(2). A court may take notice of “undisputed matters of public record,” but not of “disputed 8 facts stated in public records.” Lee v. City of Los Angeles, 250 F.3d 668, 690 (9th Cir. 2001). 9 Second, the doctrine of incorporation by reference permits a court to treat an extrinsic document as 10 if it were part of the complaint if the pleading “refers extensively to the document” or if “the 11 document forms the basis” of a claim. Khoja, 899 F.3d at 1002; see also Knievel v. ESPN, 393 12 F.3d 1068, 1076 (9th Cir. 2005). This is to prevent plaintiffs from cherry-picking certain portions 13 of documents that support their claims, while omitting portions that weaken their claims. Khoja, 14 899 F.3d at 1002. 15 “In general, websites and their contents may be judicially noticed.” Threshold Enters. Ltd. 16 v. Pressed Juicery, Inc., 445 F. Supp. 3d 139, 146 (N.D. Cal. 2020) (collecting cases). Likewise, 17 “[c]ourts routinely take judicial notice of terms of service.” Zhang v. Twitter Inc., No. 23-CV- 18 00980-JSC, 2023 WL 5493823, at *3 (N.D. Cal. Aug. 23, 2023), appeal pending sub nom. 19 Taiming Zhang v. Twitter, Inc., No. 23-16125 (9th Cir. Aug. 24, 2023); see also Yuksel v. Twitter, 20 Inc., No. 22-CV-05415-TSH, 2022 WL 16748612, at *2 (N.D. Cal. Nov.

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