Google Can’t Escape Class Action Lawsuit over Minors’ In-App Purchases

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On Monday, a California federal judge denied Google Inc.’s request to dismiss a class action lawsuit alleging it made it too easy for children to purchase items within apps without their parents’ permission or consent.

Plaintiff Ilana Imber-Gluck filed the class action lawsuit against Google in March, alleging that many of the games available in its Google Play marketplace require parental permission to purchase or download. However, she alleges in-app features can be purchased for up to 30 minutes after the game is downloaded, without requiring a password or parental consent.

Imber-Gluck alleges that she created a Google Play account and connected it to her debit card. According to the Google class action lawsuit, she purchased and downloaded a game called “Marvel Run Jump Smash” onto her Samsung Galaxy tablet. During the 30-minute window her password was open, her child allegedly made $65.95 worth of in-app purchases without her knowledge or consent. She claims that Google didn’t give her indication that she was approving anything more than a single $0.99 video game download.

The Google class action lawsuit asserted claims for declaratory judgment, violation of the Consumer Consumers Legal Remedies Act, violation of California’s Unfair Competition Law, unjust enrichment and breach of the duty of good faith and fair dealing.

Google filed a motion to dismiss the class action lawsuit, arguing that Imber-Gluck’s claim for declaratory judgment was based on a false assumption that minor children enter into a contract with Google when making in-app purchases on their parents’ mobile devices. Google also sought to dismiss the class action lawsuit because Imber-Gluck did not rely on any alleged misrepresentations when she decided to purchase the app.

Although U.S. District Judge Ronald M. Whyte refused to dismiss the Google class action lawsuit in its entirety, he dismissed the claims for declaratory judgment, violations of the CLRA and violations of the UCL. However, he denied Google’s request to dismiss the claims for deceptive advertising, unjust enrichment and breach of good faith and fair dealing.

According to Judge Whyte, Imber Gluck “failed to sufficiently allege that she relied upon Google’s misrepresentation or that she would have behaved differently had she been aware of it. While plaintiff alleges she was charged $65.95 without her authorization and that Google gave her no indication she was approving anything more than a $0.99 purchase, she fails to explicitly allege that she was unaware of either the 30-minute password duration or the ability to make In-App Purchases.”

However, Judge Whyte granted Imber-Gluck leave to amend the Google class action lawsuit to address his concerns.

The Federal Trade Commission has been cracking down on app providers over the issue of in-app purchases. In January, Apple Inc. agreed to a $32.5 million settlement with the FTC over minors’ in-app purchases. Earlier this month, Amazon Inc. told the agency that it was prepared to go to trial over the issue of in-app purchases.

Imber-Gluck is represented by James Patterson of Patterson Law Group, Todd Carpenter of Carpenter Law Group, Benjamin Sweet and Edwin Kilpela Jr. of Del Sole Cavanaugh Stroyd LLC, and Shannon Carson and Patrick Madden of Berger & Montague PC.

The Children’s Google In-App Purchasing Class Action Lawsuit is Ilana Imber-Gluck v. Google Inc., Case No. 5:14-cv-01070, in the U.S. District Court for the Northern District of California.

UPDATE: On April 3, 2015, a California federal judge denied Class certification to the Google in-app purchase class action lawsuit because the issue has already been resolved in a settlement with the Federal Trade Commission.