Facts

Anthony Chiu, Cameron Dwyer, and other California consumers filed a class action against Apple Inc. alleging violations of California's Consumers Legal Remedies Act and California's Unfair Competition Law in connection with Apple's iPhone and iPad devices.

PLAINTIFFS' CONTENTIONS:
Apple attracted consumers to purchase iPhones and iPad devices partly by offering thousands of "free" Apps in its "App Store." Apple claimed that users' privacy was a priority. However, plaintiffs contended that Apple designed its platform to easily transmit users' personal information to third parties who then collected that information without the users' consent. As such, Apple failed to adequately disclose to users that the "free" apps were in fact provided in exchange for plaintiffs' personal information, which was acquired by third parties without their consent or detection. Plaintiffs contended that they relied on Apple's representation about privacy in purchasing Apple devices, and were therefore injured as a result of Apple's misconduct. Plaintiffs identified two types of injuries. First, they overpaid for their iPhones. Second, the unauthorized transmission of data taxed their phones' resources in that the unauthorized transmissions drained the battery and used up storage space and bandwidth.

DEFENDANT'S CONTENTIONS:
Apple filed a motion for summary judgment, arguing that plaintiffs lacked standing to assert their claims. Moreover, plaintiffs failed to allege that they relied on Apple's alleged misrepresentations and they have suffered an economic injury as a result.

Result

U.S. District Judge Lucy H. Koh granted Apple's motion for summary judgment finding that while plaintiffs established injury sufficient for standing, they didn't establish reliance for purposes of their CLRA and UCL claims. Plaintiffs didn't establish that they had read the privacy policy prior to purchase.