Apple has defeated a lawsuit claiming it duped ebook purchasers by "selling" them books and audiobooks, but retaining the right to revoke access.
In a ruling
issued last week, U.S. District Court Judge Noël Wise in the Northern District of California said the plaintiffs -- California residents Jennifer Morehouse and Keri Smith -- lacked "standing" to
proceed because they did not allege that they actually lost access to the material they purchased.
"Plaintiffs have simply not alleged an injury, nor shown that the court can
provide them redress," Wise wrote in a four-page order throwing out the lawsuit.
Morehouse and Smith sued Apple last year for false advertising and related claims.
Morehouse alleged that she paid Apple $19.99 for the audiobook The Idea of You by Robinne Lee, and Smith alleged that she purchased the ebook Starting Over in Maple Bay by
Brittney Joy for $4.99.
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They alleged that Apple violated a 2024 state law prohibiting sellers from advertising digital e-books, movies, games,
music and other digital material with the words “buy” or “purchase,” unless the sellers also conspicuously disclose that they can revoke access at any time.
The pair added in an amended complaint that they wouldn't have made the purchases at those prices if they had known they were purchasing a license to the material.
Wise ruled that allegations in the amended complaint, even if true, would not have shown that the plaintiffs were harmed financially.
"Plaintiffs have not shown
that the e-books and audiobooks have 'an actual defect' or are 'worth less than what' plaintiffs paid," he wrote.
Last year, Apple settled a similar claim brought by California resident David Andino, who alleged
that the company's representations that customers can buy digital video and music are misleading.
That settlement came four years after U.S. District Court Judge John Mendez in
Sacramento rejected Apple's bid for an early dismissal.
Apple had contended that Andino did not allege that he lost access to any of his digital purchases, adding that his
complaint rested on "a speculative and attenuated possibility" that content might be unavailable in the future.
Mendez rejected that argument in 2021, writing: “In common
usage, the term 'buy' means to acquire possession over something."
Amazon also currently faces a similar claim by California resident Lisa Reingold, who alleged last year that
the company offers to sell video downloads to consumers without conspicuously disclosing that consumers will only receive a license to the videos.
"Far below the 'buy movie'
button, buried at the very bottom confirm purchase screen is fine print that states: “BY BUYING OR RENTING, YOU RECEIVE A LICENSE TO THE VIDEO AND YOU AGREE TO OUR TERMS AT
PRIMEVIDEO.COM/TERMS,” Reingold alleged in a class-action complaint.
Amazon in November asked U.S. District Court Judge Ricardo Martinez in Seattle to dismiss that
matter. Martinez has not yet ruled on Amazon's motion.