McDonald v. Aps

385 F. Supp. 3d 1022
CourtDistrict Court, N.D. California
DecidedMay 22, 2019
DocketCase No. 17-cv-04344-JD; Case No. 17-cv-04419-JD; Case No. 17-cv-04492-JD
StatusPublished
Cited by19 cases

This text of 385 F. Supp. 3d 1022 (McDonald v. Aps) 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
McDonald v. Aps, 385 F. Supp. 3d 1022 (N.D. Cal. 2019).

Opinion

JAMES DONATO, United States District Judge

These cases are related actions brought by parents over gaming apps for kids. McDonald v. Kiloo , Case No. 17-4344, involves the "Subway Surfers" app. Rushing v. The Walt Disney Company , Case No. 17-4419, involves "Princess Palace Pets" and four versions of "Where's My Water?" Rushing v. Viacom Inc. , Case No. 17-4492, challenges "Llama Spit Spit." All of the cases are putative class actions and allege that the apps were used to track online behavior on a device and user-specific level, and that defendants exploited the data, without disclosure or consent, for profit. In effect, the complaints allege that the apps *1028were covert collectors of behavioral data for delivery of targeted advertising to users, namely the kids who played the games.

Plaintiffs have sued a number of "developer defendants" and "SDK defendants." The developer defendants, which include Disney, Viacom, Kiloo and Sybo, are the companies that created the games and made them available for download. The SDK defendants are mobile advertising and app monetization companies that provide "software development kits" containing code to collect user data. These defendants include AdColony, Chartboost, Tapjoy, Flurry and other entities. Plaintiffs allege that the developer defendants embedded the SDK defendants' code into the games to gather and transmit to the SDK defendants "persistent identifiers" and personal data for tracking, profiling and ad targeting.

All the cases assert privacy claims under the California Constitution and for intrusion upon seclusion under California law. The Disney case adds a privacy claim under Massachusetts law.1 The Kiloo and Disney cases also include consumer protection claims under New York's General Business Law § 349, and Disney further invokes the California Unfair Competition Law and the Massachusetts Unfair and Deceptive Trade Practices Statute.

The Court related the cases but did not consolidate them for trial. Plaintiffs filed amended complaints as a result of prior proceedings, mainly to avoid potential preemption under the federal Children's Online Privacy Protection Act, 15 U.S.C. §§ 6501 - 6506 ("COPPA"). See Dkt. No. 159. Defendants seek to dismiss the amended complaints under Rule 12(b)(6) and in some cases for lack of personal jurisdiction, with several arguments made on a joint basis and others on a defendant-specific basis. This order resolves these motions.

BACKGROUND

The operative allegations are the same in all the cases, as tailored to the pertinent developers and SDK defendants for each game. The allegations in Kiloo are representative of the cases as a whole, and are used here as the context for the motions.

As alleged in the Kiloo amended complaint (Dkt. No. 268-1, "KAC"), a parent or child downloads and installs a gaming app onto a cell phone or other mobile device for play. KAC ¶ 28. When the app is launched, it connects immediately to a server hosted by the developer and begins sending data even before the user plays the game. Id. ¶ 40. The data sharing is invisible to the user. Id. As the user plays the game, the embedded SDK code communicates with the SDK defendant's individual server. Id. ¶ 42. The SDK code sends requests or "calls" for an ad to the server, and the user's personal data is sent with each call. Id. As a result of the call, the user "may receive a single ad, but nonetheless multiple SDKs have exfiltrated to their servers the user's Personal Data." Id. The advertisements displayed in the gaming app to the user can be "video ads, wherein users 'watch a video ad and are rewarded with virtual currency.' " Id. ¶¶ 46, 99. The user might also be shown "pop-up ads between game plays." Id. ¶¶ 131-132. These ads "are targeted at specific users based on complex profiles assembled using their persistent identifiers, and other information bundled with those identifiers and sent to the SDK Defendants pursuant to the SDK coding inputted into the app and downloaded onto users' devices." Id. ¶ 133.

*1029The KAC alleges that the user data harvested by the SDKs includes (1) an ID for Advertisers ("IDFA") and ID for Vendors ("IDFV") for Apple devices; (2) an Android Advertising ID ("AAID") and Android ID for Android devices; (3) the device's International Mobile Equipment Identity ("IMEI"); (4) the specific device name; (5) IP address; (6) timestamp, i.e. , the time at which an advertising event is recorded; and (7) Device Fingerprint data, including the user's language, time zone and country, and mobile network or carrier. See , e.g. , KAC ¶¶ 47-52. Plaintiffs allege that the SDK defendants retain this user data. SDKs "store[ ] and analyze[ ] the Personal Data to enable continued tracking of the user, such as what ads she has already seen, what actions she took in response to those ads, other online behavior, and additional demographic data." Id. ¶ 42. This allows the SDK defendants -- "and other entities in the ad network" -- to "monitor, profile, track her over time, across devices, and across the Internet." Id.

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Bluebook (online)
385 F. Supp. 3d 1022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonald-v-aps-cand-2019.