Google Defends Itself Against In-App Class Action Lawsuit

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Google Inc. is fighting back against a class action lawsuit filed in California federal court over in-app purchases. This Google class action lawsuit was filed by a group of parents who allege that the internet company persuaded their children to buy in-app purchases without parental permission.

After this Google class action lawsuit was amended and revived in court, Google argued that the amended complaint failed to provide evidence that the plaintiffs relied on Google’s allegedly misleading statements concerning app costs.

In March, lead plaintiff Ilana Imber-Gluck filed this Google class action lawsuit on behalf of herself, her son, and other parents who downloaded a Google game with misleading costs. She alleges she downloaded the Google game Run Jump Smash for $0.99 at the Google store for her Samsung Galaxy 2 Tab 2 Android Tablet allegedly believing on the represented $0.99 purchase price was the only cost associated with the app purchase. However, she claims that her son was able to purchase $65.95 of in-game currency because the game allows for 30 minutes of in-app purchases without requiring her password to be re-entered.

In July, the presiding federal judge ruled that Imber-Gluck made a strong case for misrepresentation of product pricing by Google, but neglected to fully detail reliance on this misrepresentation when buying the game. The plaintiff was given 30 days to amend the complaint, which she did and resubmitted to the court with two additional consumers added on as co-plaintiffs.

The two new plaintiffs make similar allegations that they relied on Google’s misrepresentation of their app-games Tyrant Unleashed and Battle Alert, which were marketed as free, when downloading these games for their children. Along with Imber-Gluck, they bring this in-app class action lawsuit against Google alleging that had they known of the additional costs of in-app purchases, they would not have downloaded the apps at all or taken extra precautions to prevent their children from making purchases without their consent.

In their answer to the amended in-app class action lawsuit, Google denied liability and challenged the plaintiffs’ claims that the company violated California business law by actively advertising and marketing certain Google game apps as “free” or low priced or failing to clearly state that minors could potentially make in-app purchases without re-entering a parent’s password up to 30 minutes after purchase.

According to Google’ s defense against the in-app purchases class action lawsuit, “plaintiffs’ claims are barred, in whole or part, because plaintiffs did not reasonable rely on any allegedly misleading statements on the labels of the products or services at issue and therefore did not suffer any injury or any loss of money or property. Thus, plaintiffs lack standing to bring such claims under Article II of the U.S. Constitution.”

Google further argues that their gaming app advertisements were “not likely to mislead.” Additionally, the company claims that the “voluntary payment” doctrine opposes the plaintiff’s allegations, especially considering that they continued to purchase Google products and services they knew of the alleged basis for the claim.

The court has yet to make a decision on this Google class action lawsuit.

The plaintiffs are represented by Todd D. Carpenter of Carpenter Law Group; James R. Patterson of Patterson Law Group; Benjamin J. Sweet and Edwin J. Kilpela Jr. of Carson Lynch Ltd.; and Shannon J. Carson and Patrick F. Madden of Berger & Montague PC.

The Google In-App Purchases Class Action Lawsuit is Ilana Imber-Gluck et al. 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.