In re iPhone Application Litig.

844 F. Supp. 2d 1040, 2012 WL 2126351, 2012 U.S. Dist. LEXIS 81426
CourtDistrict Court, N.D. California
DecidedJune 12, 2012
DocketCase No. 11-MD-02250-LHK
StatusPublished
Cited by78 cases

This text of 844 F. Supp. 2d 1040 (In re iPhone Application Litig.) 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 iPhone Application Litig., 844 F. Supp. 2d 1040, 2012 WL 2126351, 2012 U.S. Dist. LEXIS 81426 (N.D. Cal. 2012).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTIONS TO DISMISS

LUCY H. KOH, District Judge.

A putative nationwide class of plaintiffs bring suit against Apple, Inc., Admob, Inc., Flurry, Inc., AdMarval, Inc., Google, Inc., and Medialets, Inc., (aside from Apple, collectively “Mobile Industry Defendants” 1) for alleged violations of federal and state law. Plaintiffs are United States’ residents who use mobile devices manufactured by Apple that operate Apple’s “iOS” proprietary operating systems, or what Plaintiffs refer to as iDevices (e.g., iPhone, iPad, and iPod Touch). Plaintiffs [1049]*1049claim that Defendants violated their privacy rights by unlawfully allowing third party applications (“apps”) that run on the iDevices to collect and make use of, for commercial purposes, personal information without user consent or knowledge. Apple and the Mobile Industry Defendants have each filed motions to dismiss on various grounds, including lack of Article III standing, consent to privacy agreements, and additional claim-specific reasons. A hearing was held on May 3, 2012. For the reasons explained below, the Court GRANTS Defendant Mobile Industry Defendants motion to dismiss and GRANTS in part and DENIES in part Apple’s motion to dismiss. Specifically, Plaintiffs’ claims against the Mobile Industry Defendants for violations of the Stored Communications Act, violations of the California Constitutional right to privacy, violations of the Computer Fraud and Abuse Act, trespass, conversion, and unjust enrichment are dismissed. Plaintiffs’ claims against Apple for violations of the Stored Communications Act, violations of the Wiretap Act, violations of the California Constitutional right to privacy, negligence, violations of the Computer Fraud and Abuse Act, trespass, conversion, and unjust enrichment are dismissed. For the reasons set forth in Section III.D., these claims are dismissed with prejudice. Plaintiffs’ claims against Apple for violations of the Consumer Legal Remedies Act and the Unfair Competition Law survive Apple’s motion to dismiss.

I. BACKGROUND

A. Factual Background

Unless otherwise noted, the following allegations are taken from the Amended Consolidated Complaint and are presumed to be true for purposes of ruling upon Defendants’ motions to dismiss. Generally speaking, Plaintiffs’ Amended Consolidated Complaint asserts claims with respect to two separate putative classes of individuals and challenges two separate aspects of the iDevices used by Plaintiffs.

The iDevice Class2

iDevices enable users to download apps via Apple’s “App Store” application and website. First Amended Consolidated Complaint (“AC”) ¶ 86. Apple exercises significant control over the apps that are available in its store. Id. ¶¶ 123-126. Apple’s App Store has set Apple products apart from Apple’s competitors: “[i]n the post 3G 2.0 iOS era, the success of Apple’s iPhones sales [sic] is inextricably linked to consumers’ access to its App Store.” Id. ¶ 86. Apple represents to users of the App Store that it “takes precautions—including administrative, technical, and physical measures—to safeguard your personal information against theft, loss, and misuse, as well as against unauthorized access, disclosure, alteration, and destruction.” Id. ¶ 78.

Although the apps at issue in this litigation are provided for free, Plaintiffs contend that they in fact pay a price for the use of the “free” apps because these Apple-approved apps allow their personal data to be collected from their iDevices. AC ¶¶ 1; 160. Plaintiffs allege that Apple designs its mobile devices to allow personal information to be disclosed to the Mobile Industry Defendants. Id. ¶¶ 159-60. ‘When users download and install the Apps on their iDevices the [Mobile Industry Defendants’] software accesses person[1050]*1050al information on those devices without users’ awareness or permission and transmits the information to the [Mobile Industry Defendants].” Id. ¶ 161. The information collected by Defendants includes Plaintiffs’ addresses and current whereabouts; the unique device identifier (“UDID”) assigned to the iDevice; the user’s gender, age, zip code and time zone; and app-specific information such as which functions Plaintiff performed on the app. Id. ¶ 2; see also id. ¶¶ 53-67, 161. These practices have allowed the Mobile Industry Defendants to “acquire details about consumers and to track consumers on an ongoing basis, across numerous applications and tracking consumers when they accessed Apps from different mobile devices.” Id. ¶ 164.

Plaintiffs allege that, in light of Apple’s public statements about protecting user privacy, Plaintiffs did not expect or consent to the Mobile Industry Defendants’ tracking and collecting their app use or otherwise personal information. Id. ¶ 173-74. Moreover, Plaintiffs allege that they consider the information about their mobile communications to be personal and confidential. Id. ¶ 177.

Plaintiffs assert that these practices have led to several concrete harms to the “iDevice Class,” defined as “[a]ll persons residing in the United States who have purchased iPhones and downloaded free Apps from the App Store on a mobile device that runs Apple’s iOS, from December 1, 2008 to the date of the filing of this Complaint.” AC ¶ 203. For one, the Mobile Industry Defendants’ actions have consumed finite resources in the form of bandwidth and storage space on their iDevices. Id. ¶ 198. For example, downloading the Weather Channel App “caused a compressed.zip file of approximately two megabytes in size to be downloaded to each of Plaintiffs’ iDevices and for purposes unrelated to those expected in the Weather Channel App.” Id. Additionally, the transmission of personal information to the Mobile Industry Defendants was done without encryption, thus “exposing each Plaintiff to unreasonable risks of the interception of their personal information.” Id. ¶¶ 66-67. Finally, Plaintiffs allege that as a result of Apple’s failure to disclose its practices with respect to the allegedly “free apps,” Plaintiffs overpaid for their iDevices. In other words “[h]ad Apple disclosed the true cost of the purportedly free Apps ... the value of the iPhones would have been materially less than what Plaintiffs paid.” Id. ¶ 29.

The Geolocation Class

Additionally, Plaintiffs Gupta and Rodimer represent the “Geolocation Class,” a putative class of iDevice purchasers who “have unwittingly, and without notice or consent transmitted location data to Apple’s servers.” Id. ¶ 204. Apple designed its iOS 4 software to retrieve and transmit geolocation information located on its customers’ iPhones to Apple’s servers. Id. ¶30. Plaintiffs allege that in June 2010, with the release of its iOS 4 operating system, Apple began intentionally collecting Plaintiffs’ precise geographic location and storing that information on the iDevice in order to develop an expansive database of information about the geographic location of cellular towers and wireless networks throughout the United States. Id. ¶¶ 115, 137. The geographic location information was accumulated from either Wi-fi towers or cell phone towers, and in some cases from the GPS data on Plaintiffs’ devices. Id. ¶ 115.

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

Related

Rodriguez v. Google LLC
N.D. California, 2025
Morilha v. Alphabet Inc.
N.D. California, 2024
Sifuentes v. X Corp.
N.D. California, 2024
Kis v. COGNISM INC.
N.D. California, 2024
Doe I v. Google LLC
N.D. California, 2024
Hubbard v. Google LLC
N.D. California, 2024
Shin v. ICON Foundation
N.D. California, 2024
Conlan Abu v. Dickson
E.D. Michigan, 2023
Meyer v. Mittal
D. Oregon, 2023
Hammerling v. Google LLC
N.D. California, 2022
Budowich v. Pelosi
District of Columbia, 2022
Jacobo v. Doe
E.D. California, 2022

Cite This Page — Counsel Stack

Bluebook (online)
844 F. Supp. 2d 1040, 2012 WL 2126351, 2012 U.S. Dist. LEXIS 81426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-iphone-application-litig-cand-2012.