Svenson v. Google Inc.

65 F. Supp. 3d 717, 2014 WL 3962820, 2014 U.S. Dist. LEXIS 111810
CourtDistrict Court, N.D. California
DecidedAugust 12, 2014
DocketCase No. 13-cv-04080-BLF
StatusPublished
Cited by14 cases

This text of 65 F. Supp. 3d 717 (Svenson v. Google 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
Svenson v. Google Inc., 65 F. Supp. 3d 717, 2014 WL 3962820, 2014 U.S. Dist. LEXIS 111810 (N.D. Cal. 2014).

Opinion

[Re: ECF20]

ORDER DENYING MOTION TO DISMISS FOR LACK OF ARTICLE III STANDING; AND GRANTING MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM WITH LEAVE TO AMEND IN PART

BETH LABSON FREEMAN, United States District Judge

In this putative class action, Plaintiff Alice Svenson alleges that Defendants Google Inc. and Google Payment Corporation make unauthorized disclosures of user information to third-party developers of mobile applications (“Apps”) when users purchase Apps in the Google Play store using Google Wallet. Defendants move to dismiss under Federal Rule of Civil Procedure 12(b)(1) for lack of Article III standing and under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. The Court has considered the briefing and the oral argument presented at the hearing on June 26, 2014. For the reasons discussed below, the motion to dismiss for lack of Article III standing is DENIED and the motion to dismiss for failure to state a claim is GRANTED with leave to amend in part.

I. BACKGROUND

Plaintiff alleges that “Google provides internet search functionality, email services, virtual filing cabinet ‘cloud’ storage services, multimedia electronic distribution platforms, social media services, advertising services, and payment processing services, among many others.” (Corrected Complaint (“Compl.”) ¶ 10, ECF 5-1) Google Wallet is “Google’s electronic and mobile payment processing service.” (Id. ¶ 17) Google Wallet allows users to store debit card and credit card information and to utilize those payment methods to purchase Apps and other products. (Id. ¶¶ 17-18) Apps may be purchased in the Google Play store, “Google’s digital multimedia content distribution platform that is accessible via mobile devices and other internet-capable computing equipment.” (Id. ¶¶ 26, 28)

When a user purchases an App in the Google Play store using Google Wallet, “Defendants process the payment.” (Compl. ¶ 49) “After Defendants process the user’s payment, Defendants automatically remit funds to the third-party vendor in addition to the user’s name, email address, Google account name, home city and state, zip code, and in some instances telephone number” (hereinafter, “Contact Information”).1 (Id.) Google transmits the [721]*721App to the user electronically via the Google Play store. (Id. ¶ 47)

. The Contact Information is collected by Defendants when users register for a Google account, Gmail, the Google Play store, or Google Wallet. (Compl. ¶ 55) Plaintiff asserts that disclosure of Contact Information to third-party vendors is unnecessary and unauthorized by the user (id. ¶¶ 50-51, 54); breaches the terms of the agreements between the users and Defendants (id. ¶¶ 65-66); diminishes the economic value of the Contact Information (id. ¶¶ 83-84); and exposes the user to a greater risk of identity theft (id. ¶ 89).

Plaintiff alleges that on May 6, 2013, she bought an App in the Google Play store using Google Wallet. (CompU 74). Specifically, Plaintiff paid $1.77 for the “SMS MMS to Email” App published by third-party vendor YCDroid; upon purchase, the App was instantly downloaded for use on Plaintiffs mobile device. (Id.) Following the purchase, Defendants “transmitted and/or made available” Plaintiffs Contact Information to YCDroid. (Id. ¶ 77) Based upon this transaction, Plaintiff asserts claims against Defendants for: (1) breach of contract; (2) breach of the implied covenant of good faith and fair dealing; (3) violation of the Stored Communications Act, 18 U.S.C. § 2701; (4) violation of thé Stored Communications Act, 18 U.S.C. § 2702; and (5) violation of California’s Unfair Competition Law, Cal. Bus. & Prof. Code § 17200.

Defendants contend that Plaintiff has failed to allege facts demonstrating that she has Article III standing and thus has failed to establish subject matter jurisdiction. Alternatively, Defendants contend that Plaintiff has failed to allege facts sufficient to state a claim upon which relief may be granted.

II. LEGAL STANDARDS

A. Rule 12(b)(1)

A motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1) raises a challenge to the Court’s subject matter jurisdiction. See Fed. R. Civ. P. 12(b)(1). .“Article III ... gives the federal courts jurisdiction over only cases and controversies.” Public Lands for the People, Inc. v. United States Dep’t of Agric., 697 F.3d 1192, 1195 (9th Cir.2012) (internal quotation marks and citation omitted). “The oft-cited Lujan v. Defenders of Wildlife case states the three requirements for Article III standing: (1) an injury in fact that (2) is fairly traceable to the challenged conduct and (3) has some likelihood of redressability.” Id. at 1195-96 (citing Lujan v. Defenders of Wildlife, 504 U.S. 555, 560-61, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992)). If these requirements are not satisfied, the action should be dismissed for lack of subject matter jurisdiction. See Steel Co. v. Citizens for a Better Env’t, 523 U.S. 83, 109-10, 118 S.Ct. 1003, 140 L.Ed.2d 210 (1998).

B. Rule 12(b)(6)

“A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted ‘tests the legal sufficiency of a claim.’ ” Conservation Force v. Salazar, 646 F.3d 1240, 1241-42 (9th Cir.2011) (quoting Navarro v. Block, 250 F.3d 729, 732 (9th Cir.2001)). When determining whether a claim has been stated, the Court accepts as true all well-pled factual allegations and construes them in the light most favorable to the plaintiff. Reese v. BP Exploration (Alaska) Inc., 643 F.3d 681, 690 (9th Cir.2011). However, the Court need not “accept as true allegations that [722]*722contradict matters properly subject to judicial notice” or “allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir.2008) (internal quotation marks and citations omitted).

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Cite This Page — Counsel Stack

Bluebook (online)
65 F. Supp. 3d 717, 2014 WL 3962820, 2014 U.S. Dist. LEXIS 111810, Counsel Stack Legal Research, https://law.counselstack.com/opinion/svenson-v-google-inc-cand-2014.