In re Apple In-App Purchase Litigation
United States District Court for the Northern District of California
855 F. Supp. 2d 1030 (2012)
Apple (defendant) advertised certain apps as free to download, but parents (plaintiffs), including Garen Meguerian, who downloaded or let their children download those apps, were later charged without their knowledge for in-app game currency their children purchased; the parents sued under California's Consumers Legal Remedies Act (CLRA) and Unfair Competition Law (UCL), alleging Apple's "free" marketing was designed to induce children into making purchases without parental knowledge or consent, and Apple moved to dismiss.
Whether a business entity may, under state law, engage in fraudulent and deceptive advertising that misleads consumers, such as advertising apps as free while later charging for in-app purchases without adequate disclosure.