On Tuesday, an individual filed a class-action complaint against Apple Inc. in the Northern District of California alleging that the defendant unlawfully terminated Apple ID accounts the company suspected of breaching its Terms and Conditions without notification or explanation.
According to the complaint, the plaintiff and putative class “each had an Apple ID and/or purchased ‘Apps’ and/or ‘Content’ including movies, music, games … and/or made in-app purchases … (collectively ‘Content’) through the use of an Apple ID via either an Apple device, such as an iPhone iPad, Mac … and/or a non-Apple manufactured device.”
The plaintiff explained the importance of Apple IDs, stating that Apple consumers who want to purchase or access services through Apple and Apple’s App Store must use their Apple ID. In particular, “Apple consumers must create an Apple ID and register a valid method of payment to make payments to Apple for any purchases made through Apple. Even free Apps, content, and services obtained through Apple require an Apple ID and valid method of payment.” The plaintiff asserted that “(w)ithout an operable Apple ID, not only can one not access the Content they have already purchased but the functionality of any related Apple Devices is vastly diminished,” thus Apple IDs are valuable. The plaintiff claimed that he has spent more than $24,500 for purchased content via his Apple ID.
However, the plaintiff proffered that despite its assertions that “its customers’ accounts are ‘valuable,’ ” Apple has “included an unlawful, unconscionable clause in its Apple Media Services Terms and Conditions which permits Apple to, unilaterally, without adequate notice, discernable process or explanation, permanently terminate its customers’ Apple IDs and preclude access to the services and content its customers have already purchased.” The plaintiff added that “Apple may do so based merely on Apple’s suspicion that they breached its Terms and Conditions.” The complaint included the specific clause in the Terms and Services. The plaintiff averred that in this event of a potential breach, Apple terminates the suspected customers’ Apple IDs, which deprives them of the content they purchased through Apple. Particularly for customers with Apple devices, this purportedly greatly diminishes their value.
Nevertheless, according to the plaintiff, customers suspected of breaching Apple’s Terms and Conditions are able to create new Apple IDs “so they can repurchase all of the services and Content they already purchased and owned.” However, these consumers are unable to access unused funds on their terminated Apple IDs. The plaintiff noted that consumers with Apple IDs have either had their Apple IDs terminated or are at risk of such termination. Consequently, the plaintiff alleged that this conduct is unfair, unlawful and fraudulent and the plaintiff and putative class have suffered damages from this conduct.
The putative nationwide class includes: “All persons in the United States who own an Apple device and/or who had an Apple ID who had their account terminated pursuant to the Termination and Suspension of Service provision in the Apple Media Services Terms and Conditions.”
The subclass consists of those defined in the putative nationwide class “whose Account carried a positive balance at the time Apple terminated the Account.”
The causes of action are violations of Cal. Civ. Code § 1671(d), California’s Consumer Legal Remedies Act, California’s Unfair Competition Law, and California’s False Advertising Law, as well as conversion, trespass to chattels, and unjust enrichment.
The plaintiff seeks class and subclass certification and for the plaintiff and his counsel to represent the class; a permanent injunction; restitution and disgorgement of profits; an award for damages, including treble damages, costs, and fees; pre- and post-judgment interest; and other relief.
The plaintiff is represented by Shub Law Firm LLC, Frederick Law Group PLLC and Timoney Knox LLP.
