Apple Class Action Claiming Company Enticed Children To Gamble With In-Game Loot Boxes Dismissed For Good

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Apple Loot Boxes Class Action Lawsuit Overview: 

• Who: A class action lawsuit filed against Apple, Inc. by Rebecca Taylor has been dismissed for good by a California federal judge.
• Why: The judge ruled Taylor and her underage son, C.T., did not show they were economically injured by Apple.
• Where: The class action lawsuit was filed in California federal court.

A federal judge in California has dismissed a class action lawsuit accusing Apple of targeting children with addictive free games that offer in-game “loot box” purchases.

Plaintiff Rebecca Taylor claimed Apple enticed children to gamble with loot boxes that could give them a chance to receive rare items, arguing the company raised billions of dollars in revenue through its alleged scheme. 

The judge overseeing the case disagreed with Taylor, dismissing the complaint for the second time while determining she and her underage son, C.T, did not show they were economically injured by Apple. 

“All C.T. purchased from Apple was virtual currency. He obtained exactly what he paid for—virtual currency that he was free to use as he wished in the game,” the judge said. “C.T. had the opportunity to use it to purchase virtual items within the game other than loot boxes. He also had the choice to use it to purchase loot boxes for whatever benefits he perceived that provided him.”

“Brawl Stars” was the game at the center of the class action lawsuit. Taylor claimed C.T. had spent around $25 on loot boxes in the game using an iTunes gift card and her and her husband’s credit card.

The judge determined, however, that players of the game buy virtual currency that is specific to each game and not directly from Apple. 

Apple Loot Boxes Do Not Violate Laws Concerning Gambling Devices, Judge Rules

The judge also dismissed Taylor’s claims Apple violated California’s Unfair Competition Law, ruling the loot boxes didn’t violate existing laws concerning gambling devices. 

Taylor had also argued that studies showed the loot boxes have a harmful effect, but the judge ruled this wasn’t enough to preserve the claims. 

“If plaintiffs’ allegations regarding the harmful effects of loot boxes are accurate, the public interest likely lies in seeking legislative remedies,” the judge said. 

A similar class action lawsuit was filed against Google last year over claims it illegally enticed children to gamble by hosting games that sold loot boxes.

Have you purchased a loot box in a free mobile app game? Let us know in the comments! 

The plaintiffs are represented by Thomas O’Reardon II and Timothy G. Blood of Blood Hurst & O’Reardon LLP and Andrew J. Brown.

The Class Action Lawsuit is Taylor, et al. v. Apple, Inc., Case No. 20-cv-03906, in the U.S. District Court for the Northern District of California.

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