Apple has agreed to settle claims that it violated California consumer protection laws by representing that consumers could “buy” digital music and video, but allegedly
retaining the right to revoke access, according to court papers filed this week.
Settlement terms have not been disclosed.
If finalized, the deal will
end litigation dating to 2020, when California resident David Andino alleged in a class-action complaint that Apple's offers to sell digital video and music are misleading. The complaint included
claims that Apple violated California false advertising and consumer protection laws.
Amazon faces a similar lawsuit in federal court in Seattle.
Apple suffered a defeat earlier in the case, when U.S. District Court Judge John Mendez in Sacramento rejected the company's bid to throw out the complaint.
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Apple had argued to Mendez that the allegations, even if proven true, wouldn't show that its use of the terms "buy" or "purchased" are misleading. The company specifically wrote in its
bid to dismiss the case that consumers who download digital videos or music to Apple compatible devices won't ever lose access to the content.
Mendez sided against Apple in
2021, essentially ruling that it would be premature to dismiss the case at an early stage of the proceedings.
"In common usage, the term 'buy' means to acquire possession over
something,” Mendez wrote. “It seems plausible, at least at the motion to dismiss stage, that reasonable consumers would expect their access couldn’t be revoked.”
Last
year, California passed a law prohibiting sellers from
advertising digital ebooks, movies, games, music and other digital material with the words “buy” or “purchase,” unless the sellers also disclose that they can revoke access at
any time.