Google: In-App Purchase Class Action Should Not Be Certified

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According to a joint status report filed last week, Google Inc. intends to ask a federal judge to deny certification to a class action lawsuit related to charges for in-app purchases made by children, arguing that a settlement with the Federal Trade Commission (FTC) over the same issue provides an appropriate remedy to all Class Members and that there is no reason for the class action lawsuit to proceed.

Google argues that the FTC settlement provides full refunds to consumers who were billed by Google for unauthorized in-app purchases made by minors, and that this settlement provides the putative Class Members with all of the relief they would have been entitled to receive had they succeeded in the litigation. “In light of the FTC Settlement, there is no basis for any class action,” Google says.

Google has also asked the judge to issue a briefing schedule regarding the potential certification of the in-app purchase class action lawsuit.

The plaintiffs disagree that the Google FTC settlement resolves the allegations in the in-app purchase class action lawsuit and argue that the “parties are now at an impasse concerning the effect of the FTC Settlement on this litigation.” The plaintiffs argue that Google’s proposed motion to deny certification to the class action lawsuit will be premature at the current stage of litigation, and that Google has improperly refused to comply with discovery requests that were made last summer.

“Because Plaintiffs believe that the FTC Settlement does not moot or otherwise resolve the instant litigation the stay should be lifted and discovery should commence immediately,” the plaintiffs argue in opposition to Google’s proposed motion to deny certification to the class action lawsuit.

The Google in-app purchase class action lawsuit was initially filed by plaintiff Ilana Imber-Gluck in March 2014. She alleges that she purchased a game for her son to use on her Android tablet. Her son was allegedly able to purchase $65.95 worth of in-game currency within half an hour. She says she was unaware that additional purchases can be made for up to 30 minutes after the initial log-in without requiring the user to input a password.

Google has vigorously defended itself against the in-app purchase class action lawsuit, but so far its efforts have been unsuccessful. The company filed a motion to dismiss the class action lawsuit in May 2014, but its request was denied. Google has argued that the advertisements for its free or low-priced gaming apps were unlikely to mislead consumers.

Google is not the first company to come under fire for unauthorized in-app purchases made by minors. Amazon is currently fighting similar FTC charges. A year ago, Apple agreed to a $32.5 million settlement with the FTC, and in reached a class action settlement with consumers in 2013 over children’s unauthorized in-app purchases.

The plaintiffs are represented by Todd D. Carpenter of Carpenter Law Group, James R. Patterson of Patterson Law Group APC, Edwin J. Kilpela Jr. and Benjamin J. Sweet of Carlson Lynch Sweet & Kilpela LLP, and Shanon J. Carson of Berger & Montague PC.

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

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.