In re Apple In-App Purchase Litigation

855 F. Supp. 2d 1030, 2012 WL 1123548
CourtDistrict Court, N.D. California
DecidedMarch 31, 2012
DocketCase No. 5:11-CV-1758 EJD
StatusPublished
Cited by10 cases

This text of 855 F. Supp. 2d 1030 (In re Apple In-App Purchase Litigation) 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
In re Apple In-App Purchase Litigation, 855 F. Supp. 2d 1030, 2012 WL 1123548 (N.D. Cal. 2012).

Opinion

[1033]*1033ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS

EDWARD J. DAVILA, District Judge.

I. INTRODUCTION

Presently before the court is Defendant Apple Ine.’s (“Apple”) motion to dismiss Plaintiffs’ Consolidated Class Action Complaint (“Complaint”) pursuant to Rule 12(b)(6). See Docket Item No. 37.

Apple, a Delaware corporation with its headquarters and principal place of business in California, is a leading seller of software applications (“apps”) that users can download onto their mobile computing devices. See Complaint, Docket Item No. 28, at ¶¶ 1, 14-18, 42. Plaintiffs bring the instant class action on behalf of themselves and other similarly situated parents or guardians who (a) downloaded or permitted their minor children to download a supposedly free app from Apple and (b) then incurred charges for game-related purchases made by their minor children, without the parents’ and guardians’ knowledge or permission. Id. at ¶ 2.

II. FACTUAL AND PROCEDURAL BACKGROUND

On April 11, 2011, Plaintiff Garen Meguerian filed a complaint, individually and on behalf of others similarly situated, alleging that Plaintiffs’ minor children were able to purchase “game currencies” without their parents’ knowledge or authorization while playing game applications (“apps”), provided by Apple and advertised as free. See Docket Item No. 1. An “app” is a software application that a customer can download from Apple’s App Store onto a mobile computing device. “Game currencies” are virtual objects, such as supplies, that are used in connection with gameplay in certain apps. Id. at ¶ 1-2.

On April 22, 2011, Plaintiffs Lauren Scott, Kathleen Koffman, and Heather Silversmith filed Scott v. Apple Inc., No. 11-1989. On May 26, 2011, Plaintiff Twilah Monroe filed Monroe v. Apple Inc., No. 11-2394. Plaintiffs filed their consolidated Complaint on June 16, 2011. See Complaint, Docket Item No. 28. Subsequently, these actions were consolidated by Judge Jeremy Fogel under the caption “In re Apple In-App Purchase Litigation.” See Docket Item No. 33. In the Complaint, Plaintiffs allege that minors were able to make in-app purchases of game currency without Plaintiffs’ knowledge or permission. See Docket Item No. 28, at ¶¶ 2, 8-12. The Complaint asserts claims for declaratory judgment, violation of the California Consumers Legal Remedies Act (“CLRA”), Cal. Civ.Code § 1750 et seq., violation of California’s Unfair Competition Law (“UCL”), Cal. Bus. Prof.Code § 17200 et seq., breach of the implied covenant of good faith and fair dealing, and restitution /unjust enrichment/ money had and received. Id., at ¶¶ 45-96.

The sale of an app or any game currency is a transaction completed directly between Apple and the consumer. Id. at ¶ 19. Apple requires users to authenticate their accounts by entering a password pri- or to purchasing and/or downloading an app or buying game currency. Id. at ¶¶ 3, 21. Until early 2011, however, once the password was entered once, Apple permitted users to buy game currency for up to fifteen minutes without re-entering the password. Id. at ¶¶3-4, 21. Plaintiffs claim that they were unaware that purchases could be made without re-entering the password. Id. at ¶ 21. Plaintiffs downloaded and allowed their children to play free or nominal gaming apps, unaware that their children could, for fifteen minutes, purchase game currency without entering a password. Id. at ¶¶ 8-12. Plaintiffs’ minor children were able to charge their parents’ accounts in amounts [1034]*1034ranging from $99.99 to $338.72 at a time. Id.

On August 8, 2011, Defendants filed this instant motion to dismiss Plaintiffs’ Complaint. See Docket Item No. 37. Plaintiffs filed a response on September 2, 2011. See Docket Item No. 44. Defendants filed their reply on September 21, 2011. See Docket Item No. 48. This case was reassigned to Judge Edward J. Davila on September 27, 2011. See Docket Item No. 49.

On November 14, 2011 Defendant moved to stay discovery until the August 8, 2011 motion to dismiss is resolved. See Docket Item No. 56. Plaintiffs filed a response on November 23, 2011. See Docket Item No. 57. After being granted enlarged time, Defendant filed a reply brief on December 5, 2011. See Docket Item Nos. 59, 60.

III. JURISDICTION AND VENUE

This court has jurisdiction pursuant to 28 U.S.C. § 1332(d) and venue is proper in this district under 28 U.S.C. § 1391. Plaintiffs bring this class action pursuant to Federal Rules of Civil Procedure 23(b)(2) and (b)(3).

California substantive law applies to the instant case. Apple account holders agree to a set of Terms and Conditions (“Terms & Conditions”) prior to making any purchases or downloads from Apple’s online store. The Terms & Conditions provide that, “[a]ll transactions on the Services are governed by California law.... You expressly agree that all exclusive jurisdiction for any claim or dispute with Apple or relating in any way to your use of the Services resides in the courts of the State of California.” See Docket Item No. 28, at ¶ 40. Furthermore, Apple’s headquarters and principal place of business is located in California. Id. at ¶ 41.

IV. LEGAL STANDARD

Under Federal Rule of Civil Procedure 12(b)(6), a complaint may be dismissed if it fails to state a claim upon which relief can be granted. “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (internal quotations omitted). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. Recitals of the elements of a cause of action and conclusory allegations are insufficient. Id.

Federal Rule of Civil Procedure 8(a) requires a plaintiff to plead each claim with sufficient specificity to “give the defendant fair notice of what the ... claim is and the grounds upon which it rests.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (internal quotations omitted). Moreover, the factual allegations “must be enough to raise a right to relief above the speculative level” such that the claim “is plausible on its face.” Id. at 555, 570, 127 S.Ct. 1955.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Heck v. Amazon.com, Inc.
N.D. California, 2022
Klaehn v. Cali Bamboo LLC.
S.D. California, 2020
Dekker v. Vivint Solar, Inc.
N.D. California, 2020
In re Nexus 6P Prods. Liab. Litig.
293 F. Supp. 3d 888 (N.D. California, 2018)
In re Seagate Technology LLC Litigation
233 F. Supp. 3d 776 (N.D. California, 2017)
Rosado v. Ebay Inc.
53 F. Supp. 3d 1256 (N.D. California, 2014)
Herron v. Best Buy Co.
924 F. Supp. 2d 1161 (E.D. California, 2013)
I.B. ex rel. Fife v. Facebook, Inc.
905 F. Supp. 2d 989 (N.D. California, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
855 F. Supp. 2d 1030, 2012 WL 1123548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-apple-in-app-purchase-litigation-cand-2012.