Pirozzi v. Apple Inc.

913 F. Supp. 2d 840, 2012 WL 6652453, 2012 U.S. Dist. LEXIS 180530
CourtDistrict Court, N.D. California
DecidedDecember 20, 2012
DocketCase No. 12-CV-01529 YGR
StatusPublished
Cited by17 cases

This text of 913 F. Supp. 2d 840 (Pirozzi v. Apple 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
Pirozzi v. Apple Inc., 913 F. Supp. 2d 840, 2012 WL 6652453, 2012 U.S. Dist. LEXIS 180530 (N.D. Cal. 2012).

Opinion

Order Granting Motion of Apple Inc. to Dismiss With Leave to Amend

YVONNE GONZALEZ ROGERS, District Judge.

Plaintiff Maria Pirozzi brings this putative class action against Defendant Apple Inc. (“Apple”) for failing to prevent third-party software applications distributed through its online App Store from uploading user information from their mobile devices without permission. Plaintiff asserts six claims against Apple: (1) Violations of California’s Unfair Competition Law (“UCL”), Cal. Bus. & Prof.Code §§ 17200 et seq.; (2) Violations of California’s False Advertising Law (“FAL”), Cal. Bus. & Prof.Code §§ 17500 et seq.; (3) Violations of California’s Consumer Legal Remedies Act (“CLRA”), Cal. Civ.Code §§ 1750 et seq.; (4) Negligent Misrepresentation; (5) Negligence; and (6) Unjust Enrichment.

Apple has filed a Motion to Dismiss on the grounds that Plaintiffs claims are barred by Section 230 of the Communications Decency Act, 47 U.S.C. § 230; Plaintiff lacks Article III standing; Plaintiff fails to satisfy the particularity requirement of Rule 9(b); and each of Plaintiffs claims fails to state a claim upon which relief can be granted.

Having carefully considered the papers submitted, the Amended Class Action Complaint (“CAC”), for the reasons set forth below, the Court hereby GRANTS the Motion to Dismiss With Leave to Amend.

I. BACKGROUND1

Plaintiff alleges as follows: Apple designs and manufactures three popular mobile devices: the iPhone, the iPod touch and the iPad (collectively “Apple Devices”). Owners of Apple Devices can customize their user experience by installing third-party software applications (“Apps”). (CAC ¶¶ 21-25.) These Apps are integral to users’ experiences when operating Apple Devices. Apple operates an online “App Store” “where customers can shop for and acquire apps offered by Apple and third-party developers.” (Id. ¶ 21.) The App Store is the exclusive source from which owners of Apple Devices can obtain Apps for their Apple Devices.

Apple completely controls users’ experience from development of the Apple Device to development and selection of the Apps available at the Apps Store. (Id. ¶¶ 21, 25, 35.) Apple claims to “review every app on the App Store based on a set of technical, content, and design criteria.” (Id. ¶ 38.) The App approval process “ensure[s] that applications are reliable, perform as expected, and are free of explicit and offensive material.” (Id.)

The App Store Review 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 [845]*845where the data will be used.” (Id.) “In order to offer an application for download in the App Store, a third-party developer must be registered as an Apple Developer’ and agree to the iOS Developer Agreement (the ‘IDA’) [sic] and the Program License Agreement (the ‘PLA’) with Apple as well as [a] $99 yearly registration fee.” (Id. ¶ 29.) Among other provisions, the PLA contractually requires developers to obtain user consent before they collect any user or device data through their apps. (Id. ¶ 36.) Apple also “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. ¶ 29.) “The App Store Review Guidelines set forth the technical, design, and content guidelines [that] Apple [uses] when reviewing an app for inclusion in Apple’s App Store.” (Id. ¶ 36.)

According to Apple, its iOS operating system “ ‘is highly secure from the moment you turn on your iPhone. All apps run in a safe environment, so a website or app can’t access data from other apps. iOS also supports encrypted network communication to protect your sensitive information. To guard your privacy, apps requesting location information are required to get your permission first. You can set a passcode lock to prevent unauthorized access to your device[.]’ Apple makes similar claims with respect to the iPad and the iPod Touch.” (Id. ¶ 37 (alteration in original).)-

Notwithstanding Apple’s representations regarding its protection of users’ personal information and the security of the iOS operating system, “Apple-approved apps have downloaded and/or copied users’ private address book information (including names and contact information of users’ contacts), location data, private photographs and videos without the users’ knowledge or consent when a user agrees to allow an app to access the user’s then current locations.” (Id. ¶ 41.) “For example, in early February 2012, it- was revealed that one such app, Path, was uploading data stored on users’ Apple Devices (including address book and calendar) to its servers.” (Id. ¶42.) “[0]ther popular apps such as Angry Birds, Cut-the-Rope, Twitter, Facebook, Linkedln, Gowalla, Foodspotting, Instagram, Foursquare, Beluga, Yelp!, Hipster and Kik Messenger among others, have likewise downloaded users’ data without their explicit consent in contrast to Apple’s stated policy.” (Id. ¶ 43.) And while “copying address book data, photos and videos without a user’s consent is against Apple’s rules ... [, Apple has] failed to properly screen apps and allowed such apps to be sold in the App Store.” (Id: ¶ 46.)

Plaintiff does not specify when she reviewed any of these statements, but claims that she relied, upon statements by Apple in her decision to purchase an Apple Device and in her decision to purchase Apps from the App Store. The 27-page CAC has only one paragraph regarding Named Plaintiff Maria Pirozzi:

8. Plaintiff Maria Pirozzi is a citizen of New Jersey and is an owner of an Apple Device. Plaintiff has owned an Apple Device since September 2011. During that time, she has downloaded a number of apps from the App Store.

(CAC ¶ 8.)

Plaintiff does not specify which Apple Device(s) she owns, which Apps she downloaded from the App Store, or whether any third-party App actually uploaded personal information from her mobile device. Rather, she alleges generically, that “Apple failed to properly safeguard Apple Devices and, instead, induced Plaintiff to purchase an Apple Device and to download apps under the premise that Plaintiffs private [846]*846information would remain confidential.” (Id. ¶ 3.) Plaintiff further alleges that “Apple failed to safeguard Plaintiffs personal information from potential misappropriation.” (Id. ¶ 53.) Plaintiff has paid for third-party Apps through Apple’s App Store that has left her personal information vulnerable to unauthorized access. (Id. ¶ 54.) On this-basis, “Plaintiff alleges that Apple invaded and/or facilitated the invasion [of] her privacy, misappropriated and misused her personal information, and interfered with the operability of her mobile device.” (Id. ¶ 4.)

II. STANDING ANALYSIS

Apple challenges Plaintiffs standing to bring this action and moves to dismiss pursuant to Rule 12(b)(1). A motion under Rule 12(b)(1) challenges the grounds for the Court’s subject matter jurisdiction. See Fed.R.Civ.P. 12(b)(1).

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913 F. Supp. 2d 840, 2012 WL 6652453, 2012 U.S. Dist. LEXIS 180530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pirozzi-v-apple-inc-cand-2012.