Opperman v. Path, Inc.

84 F. Supp. 3d 962, 2015 U.S. Dist. LEXIS 36137, 2015 WL 1306494
CourtDistrict Court, N.D. California
DecidedMarch 23, 2015
DocketCase No. 13-cv-00453-JST
StatusPublished
Cited by19 cases

This text of 84 F. Supp. 3d 962 (Opperman v. Path, 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
Opperman v. Path, Inc., 84 F. Supp. 3d 962, 2015 U.S. Dist. LEXIS 36137, 2015 WL 1306494 (N.D. Cal. 2015).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART MOTIONS TO DISMISS

Re: ECF Nos. 493, 495, 496, 497, 498, 499, 500, 501, 503

THIS ORDER RELATES TO ALL CASES

JON S. TIGAR, District Judge

Before the Court are nine motions to dismiss Plaintiffs’ Second Consolidated Amended Complaint (“SCAC”) filed by Defendants Twitter, Inc.; Foodspotting, Inc. and Yelp! Inc.; Foursquare Labs, Inc.; Chillingo Ltd., Electronic Arts Inc., Rovio Mobile Oy, and ZeptoLab UK Limited; Gowalla Incorporated; Instagram, LLC; Kik Interactive, Inc.; Apple Inc.; and Path, Inc. ECF Nos. 493, 495, 497, 498, 499, 500, 501, 503. For the reasons set forth below, the Court will grant the Motions in part and deny them in part.

I. BACKGROUND1

A. Factual History

This is a putative class action challenging conduct by Apple and various developers of applications for Apple devices (“App Defendants”). SCAC, ECF No. 478, ¶ 1. Plaintiffs allege that, during the class period (July 10, 2008 through February 2012), they owned one or more of the three Apple products at issue here — -the iPhone, iPad, and/or iPod touch (collectively, “iDevices”). Id., ¶2. Plaintiffs allege that Apple engaged in a mass marketing campaign, whereby it “consciously and continuously misrepresented its iDevices as secure, and that the personal information contained on iDevices — including, specifically, address books, could not be taken without their owners’ consent.” Id., ¶ 3.

1. The “Contacts” App

Each iDeviee comes pre-loaded with a “Contacts” mobile software application (or “App”), which iDeviee owners may use as an address book to input and store the following information about the owner’s contacts:

(1) first and last name and phonetic spelling of each, (2) nickname, (3) company, job title and department, (4) address(es), (5) phone number(s), (6) email address(es), (7) instant messenger contact, (8) photo, (9) birthday, (10) related people, (11) homepage, (12) notes, (13), ringtone, and (14) text tone.

Id., ¶ 54, 55. The “information in the Contacts App is among the most private and personal of such information a user maintains on an iDeviee. The address book [972]*972data reflects the connections, associations, and relationships that are unique to the owner of the iDevice.” Id., ¶ 56. Further, the information stored therein “is highly personal and private,” and “is not shared, is not publicly available, is not publicly accessible, and is not ordinarily obtainable by a third party unless the owner physically relinquishes custody of his or her iDev-ice to another individual.” Id.

2. Apps’ Use of Contact Information

According to Plaintiffs, and notwithstanding Apple’s representations about the security of its iDevices, Apple knew that the devices permitted the App Defendants’ Apps “to secretly upload, store, and in some cases disseminate [Plaintiffs’] personal and private address books as stored in the ‘Contacts’ App from the iDevices without [Plaintiffs’] knowledge or consent.” Id., ¶2. In fact, Plaintiffs allege, Apple provided its “assistance and cooperation” to the App Defendants in accessing and misusing iDevice owners’ address-book information. Id. And despite Apple’s “unique knowledge that its iDevices were not as secure as represented,” Apple “consistently and deliberately failed to reveal its products’ security flaws to consumers.... ” Id., ¶ 4. Because of “Apple’s conduct, Plaintiffs and millions of other people purchased iDevices reasonably believing that they were secure when, in fact, they are not, and then downloaded Apps, including the Apps manufactured by App Defendants, and suffered the unexpected and unauthorized theft of their personal data.” Id. Plaintiffs allege that they would not have paid as much for their iDevices had they known of the devices’ security flaws. Id., ¶¶ 142, 148, 154, 161, 168, 174, 180, 186, 192, 197, 203, 210, 216, 223, 230.

3. The App Store and App Development

Apple offers Apps solely through its App Store, which Apple launched in July 2008. Id., ¶ 39. “Apple has exclusive control over what Apps are available in the App Store, and the iDevices are designed to only accept software downloads from the App Store.... ” Id. According to Plaintiffs, “[t]he App Store and the availability of numerous Apps to perform different functions are key parts of Apple’s marketing strategy and the popularity of the iDevices.” Id. ¶ 40.

In order to offer an App through the App store, “a third-party developer must be registered as an ‘Apple Developer,’ agree to the iOS Developer Program License Agreement with Apple, and pay a $99 yearly registration fee.” Id., ¶ 44. To further control the Apps offered through its store, “Apple provides third-party developers with review guidelines, and conducts a review of all applications submitted for inclusion in the App Store for compliance with these documents.” Id. In addition, Apple provides a host of tools, as well as support services and guidelines to third-party developers who are licensed to provide Apps through the App Store. Id., ¶¶ 44, 45, 49, 53. The result of these circumstances, according to Plaintiffs, is that “all iDevice Apps were built, in part, by Apple.” I'd, ¶46.

Apple’s guidelines provide that “Apps ‘cannot transmit data about a user without obtaining the user’s prior permission and providing the user with access to information about how and where the data will be used.’” Id., ¶47. And “Apple has sole discretion over the App approval process and may reject any App at any time and for any reason,” including a violation of the terms and conditions of the licensing agreement, providing Apple with inaccurate information, or if Apple learns the App “violates, misappropriates, or infringes the rights of a third party.” Id.

Plaintiffs further contend that,
[d]espite Apple’s public statements that it protects its iDevice owners’ privacy, [973]*973Apple’s App Developer Program tutorials and developer sites (which Apple does not make available to consumers) teach App developers just the opposite-how to code and build Apps that non-consensually access, use and upload the mobile address books maintained on Apple iDevices — precisely what these App Defendants’ identified Apps did. As App developers, the App Defendants were exposed to and aware of these tutorials and developer sites and, on information and belief, their personnel utilized them to build the identified Apps.

Id., ¶ 52. In particular, Plaintiffs allege that Apple’s iOS Human Interface Guidelines include the following statements:

Get information from iOS, when appropriate. People store lots of information on their devices. When it makes sense, don’t force people to give you information that you can easily find for yourself, such as their contacts or calendar information.
It’s often said that people spend no more than a minute or two evaluating a new app.... Avoid displaying an About window or a splash screen. In general, try to avoid providing any type of start-up experience that prevents people from using your application immediately.

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Cite This Page — Counsel Stack

Bluebook (online)
84 F. Supp. 3d 962, 2015 U.S. Dist. LEXIS 36137, 2015 WL 1306494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/opperman-v-path-inc-cand-2015.