Case No. 5:11-CV-1758 EJDORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS
U n i t e d S t a t e s D i s t r i c t C o u r t
F o r t h e N o r t h e r n D i s t r i c t o f C a l i f o r n i a
(“apps”), provided by Apple and advertised as free. See Docket Item No. 1. An “app” is asoftware application that a customer can download from Apple’s App Store onto a mobilecomputing device. “Game currencies” are virtual objects, such as supplies, that are used inconnection with gameplay in certain apps. Id. at ¶ 1-2.On April 22, 2011, Plaintiffs Lauren Scott, Kathleen Koffman, and Heather Silversmithfiled Scott v. Apple Inc., No. 11-1989. On May 26, 2011, Plaintiff Twilah Monroe filed Monroe v.Apple Inc., No. 11-2394. Plaintiffs filed their consolidated Complaint on June 16, 2011. SeeComplaint, Docket Item No. 28. Subsequently, these actions were consolidated by Judge JeremyFogel under the caption “In re Apple In-App Purchase Litigation.” See Docket Item No. 33. In theComplaint, Plaintiffs allege that minors were able to make in-app purchases of game currencywithout Plaintiffs’ knowledge or permission. See Docket Item No. 28, at ¶¶ 2, 8-12. TheComplaint asserts claims for declaratory judgment, violation of the California Consumers LegalRemedies Act (“CLRA”), Cal. Civ. Code § 1750
., violation of California’s Unfair Competition Law (“UCL”), Cal. Bus. Prof. Code § 17200
., breach of the implied covenant of good faith and fair dealing, and restitution /unjust enrichment/ money had and received. Id., at ¶¶45-96.The sale of an app or any game currency is a transaction completed directly between Appleand the consumer. Id. at ¶ 19. Apple requires users to authenticate their accounts by entering a password prior to purchasing and/or downloading an app or buying game currency. Id. at ¶¶ 3, 21.Until early 2011, however, once the password was entered once, Apple permitted users to buygame currency for up to fifteen minutes without re-entering the password. Id. at ¶¶ 3-4, 21.Plaintiffs claim that they were unaware that purchases could be made without re-entering the password. Id. at ¶ 21. Plaintiffs downloaded and allowed their children to play free or nominalgaming apps, unaware that their children could, for fifteen minutes, purchase game currencywithout entering a password. Id. at ¶¶ 8-12. Plaintiffs’ minor children were able to charge their parents’ accounts in amounts ranging from $99.99 to $338.72 at a time. Id.On August 8, 2011, Defendants filed this instant motion to dismiss Plaintiffs’ Complaint.See Docket Item No. 37. Plaintiffs filed a response on September 2, 2011. See Docket Item No.
Case5:11-cv-01758-EJD Document66 Filed03/31/12 Page2 of 15