Professional Documents
Culture Documents
Iphone Consolidateddb Case
Iphone Consolidateddb Case
Plaintiffs,
v. CASE NO.:
APPLE, INC.,
Class Action
Defendant,
Plaintiffs Vikram Ajjampur and William Devito, on behalf of themselves and others
similarly situated, hereby bring this action against Defendant Apple, Inc., and allege as
follows:
INTRODUCTION
1. “Apple iPhones and 3G iPads are secretly recording and storing details of all
security experts Alasdair Allan and Pete Warden, the location data is hidden from users but
unencrypted, making it easy for Apple or third parties to later access.2 Apple Inc.’s
1
iPhone Tracks Users’ Movements, April 20, 2011. Available at http://www.bbc.co.uk/news/technology-
13145562 (last visited April 22, 2011).
2
Id.
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 2 of 25 PageID 2
2. Users of Apple products have to no way to prevent Apple from collecting this
information because even if users disable the iPhone and iPad GPS components, Apple’s
PARTIES
at all relevant times has owned an iPhone and carried it with him everywhere.
4. Plaintiff William Devito is a resident of New York state, who at all relevant
business in California.
6. This court has jurisdiction over this action under 28 U.S.C. § 1332(d)(2). The
amount in controversy between the Class as defined herein and the Defendant exceeds
$5,000,000, exclusive of interest and costs. The Class as defined herein consists of
individuals from fifty different states. Further, greater than two-thirds of the Class members
reside in states other than California – the state in which Apple is a citizen.
Aaron Medvick is a resident of this district, many of the acts and transactions giving rise to
3
Got an iPhone or 3G iPad? Apple is Recording Your Moves, by Alasdair Allen and Pete Warden, on
radar.oreilly.com. Available at http://radar.oreilly.com/2011/04/apple-location-tracking.html (last visited April
22, 2011) (hereafter “Recording Your Moves”).
2
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 3 of 25 PageID 3
of the laws and markets within this district through the promotion,
8. All iPhones log, record and store users’ locations based on latitude and
longitude alongside a timestamp. Recording Your Moves. The iPhones store this
began recording this information with the release of its iOS 4 operating system in June
2010.4 Apple uses a cell-tower triangulation to obtain user location. Recording Your
Moves. Alternatively, Apple may use global positioning system (GPS) data to obtain user
location.
9. Apple devices download the user location data to the user’s computer when
the mobile device synchronizes (“syncs”) or shares data with the computer. The data is
unencrypted on the mobile devices and also on users’ computers that sync with those mobile
devices.
10. Users of Apple’s iPhones and iPads, including Plaintiffs, were unaware of
Apple’s tracking their locations and did not consent to such tracking.
4
iPhone Keeps Recording of Everwhere You Go, by Charles Arthur of the London newspaper Guardian,
Available at http://www.guardian.co.uk/technology/2011/apr/20/iphone-tracking-prompts-privacy-fears (last
visited April 22, 2011).
5
Available at http://www.apple.com/legal/itunes/uk/terms.html.
3
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 4 of 25 PageID 4
users. Plaintiffs and other users did not provide any sort of informed consent to the tracking
violations of law.
13. Apple tracks users’ locations on its own, separate, apart and in addition to the
information it collects in conjunction with other businesses that develop applications for
Apple’s devices. This action is not about the applications’ collection of information on
information.
14. Apple’s iPhones and iPad 3Gs are carried with users to essentially every
location they travel to, making the information collected by Apple highly personal; indeed,
in many instances it may be information to which employers and spouses are not privy.
16. Plaintiffs and proposed Class members were harmed by Apple’s accrual of
personal location, movement and travel histories because their personal computers were
used in ways they did not approve, and because they were personally tracked just as if by a
17. Plaintiffs bring this action to stop Apple’s illegal and intrusive scheme of
18. Plaintiffs seek an injunction requiring Apple to disable such tracking in its
next-released operating system for the relevant devices, which include at least iPhones
4
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 5 of 25 PageID 5
19. Plaintiffs also seek damages for violations of their statutory and common law
privacy rights.
20. The Plaintiffs bring this action on behalf of themselves and proposed plaintiff
Class members under Rules 23(b)(2) and (3) of the Federal Rules of Civil Procedure. The
All persons in the United States who purchased, owned or carried around an
iPhone with the iOS 4 operating system or a 3G iPad between the release of
those products for sale by Apple and the present. Excluded from the Class are
those who purchased the products for resale; members of the federal judiciary
and their relatives; and Defendant’s officers, directors and employees.
21. While the exact number of Class members is unknown to the Plaintiff at this
time, there are likely millions of members of the proposed Class, as approximately 59
million people now have an iPhone, and many of those run the iOS 4 operating system at
issue in this case, and about 10 million people have purchased an iPad, many of those the 3G
version at issue here. The Class is so numerous that joinder of all members of the Class is
impracticable.
22. This action involves questions of fact common to all Class members because
all Class members purchased, own or use iPhones or iPads under uniform Apple privacy
policies.
23. This action involves question of law common to all Class members because:
a. The Computer Fraud and Abuse Act, violated here, is national in scope
5
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 6 of 25 PageID 6
24. Plaintiffs’ claims are typical of those of other members of the Class as there
are no material differences in the facts and law underlying the claims of Plaintiffs and the
Class and by prosecuting their claims Plaintiffs will advance the claims of Class members.
25. The common questions of law and fact among all Class members
predominate over any issues affecting individual members of the Class, including but not
limited to:
information;
herein;
injunctive relief;
6
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 7 of 25 PageID 7
f. whether Plaintiff and Class members have sustained monetary loss and
26. Plaintiffs’ claims are typical of the claims of the proposed Class, and Plaintiffs
will fairly and adequately represent and protect the interests of the proposed Class. Plaintiffs
have retained counsel competent and experienced in the prosecution of this type of litigation.
27. The questions of law and fact common to the Class members, some of which
are set out above, predominate over any questions affecting only individual Class members.
28. Class treatment of the claims set forth herein is superior to other available
methods for the fair and efficient adjudication of this controversy. The expense and burden
individual lawsuits would be required to address the claims between Class members and
Apple, and inconsistent treatment and adjudication of the claims would likely result.
systems that track each user in identical ways, the consistent provisions of the relevant laws,
and the readily ascertainable identities of many Class members demonstrate that there would
30. Apple has acted or refused to act on grounds that apply generally to the Class
7
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 8 of 25 PageID 8
so that final injunctive relief and corresponding declaratory relief are appropriate.
31. Unless a class-wide injunction is issued, Apple will continue to commit the
violations alleged, and the members of the Class will continue to be tracked, unlawfully
32. Apple has acted and refused to act on grounds generally applicable to the
Class, making appropriate final injunctive relief with respect to the Class as a whole.
33. Apple’s acts and omissions are the direct and proximate cause of damage as
COUNT I
(Injunction and Declaration)
35. Plaintiff Vikram Ajjampur purchased, owns, uses and carries with him
Apple’s iPhone with iOS 4 and has done so at all times relevant to this action.
36. Plaintiff William Devito purchased, owns, uses and carries with him Apple’s
37. Plaintiffs relied on the terms of Apple’s privacy policy, which did not explain
the pervasive location tracking that Apple intended to undertake and did undertake.
38. Apple knew that ordinary consumers acting reasonably would not understand
the Apple privacy policy to include the location tracking and syncing at issue in this case.
39. Irreparable injury has resulted and continues to result from Apple’s
respective Apple devices, Apple began tracking their locations. This has happened in the
8
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 9 of 25 PageID 9
past and continues to happen all across the United States. It is unconscionable to allow
Apple to continue unlawfully and without proper consent tracking Plaintiffs and proposed
Class members. If Apple wanted to track the whereabouts of each of its products’ users, it
should have obtained specific, particularized informed consent such that Apple consumers
across America would not have been shocked and alarmed to learn of Apple’s practices in
recent days.
40. Inadequate remedy at law exists because users of Apple products have to no
way to prevent Apple from collecting this information because even if users disable the
iPhone and iPad GPS components, Apple’s tracking system remains fully functional.
41. Balance of the hardships favors Plaintiffs and the Class because it is easier
for Apple to stop unlawfully tracking the every move of Americans than it is for individual
and the Class bear the consequences of Apple’s deceptive privacy policy and unlawful
42. The public has an interest in being able to travel without being tracked, and
without that unencrypted tracking information being synced with computers that are
networked to the internet and are unsecured. The public interest would not be disserved, and
indeed would be advanced, by entering injunctions against Defendant. See eBay, Inc. v.
43. The injunction should require Apple to reconfigure its software so that users’
9
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 10 of 25 PageID 10
COUNT II
(Computer Fraud and Abuse Act, 18 U.S.C. § 1030)
the paragraphs above, and those that come after as if fully set forth here.
45. By secretly installing software that records users’ every moves Apple has
excess of the authorization provided by Plaintiffs as described in the Computer Fraud and
46. Plaintiffs’ computers, and those of the Class, are protected computers
47. Plaintiffs’ iPhones and iPads, and those of the Class, are also protected
48. Apple further violated the Fraud Act by causing the transmission of a
program, information, code or command – both in deploying the iOS 4 operating systems,
and also as a result of the syncing of user handheld devices with their laptop or desktop
49. Apple’s actions were knowing or reckless and, as described above, caused
50. Plaintiffs seek recovery for this loss, as well as injunctive and declaratory
COUNT III
(Unfair or Deceptive Acts in Violation of Each State’s “Little FTC” Acts)
10
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 11 of 25 PageID 11
the paragraphs above, and those that come after as if fully set forth here.
Florida’s Deceptive and Unfair Trade Practices Act. See Fla. Stat. § 501.201.
53. This cause of action is brought on behalf of Class members pursuant to each
state’s unfair or deceptive acts and practices (UDAP) statutes, i.e. the “Little FTC” Acts
(hereafter “Acts”). The Act of each state follows the Federal Trade Commission Act and
55. Plaintiffs and Class members are consumers as defined under these Acts.
56. The FTC Act prohibits an act or practice that violates either the standards for
“unfairness,” or those for “deception” – the two are independent of each other. An act or
practice may be found to be unfair where it “causes or is likely to cause substantial injury to
consumers which is not reasonably avoidable by consumers themselves and not outweighed
circumstances.
57. Apple’s inadequate disclosures made in its privacy policy were both unfair
and deceptive.
58. Apple’s tracking and syncing of Plaintiffs’ and other users’ personal
information was both unfair and deceptive because Apple’s users had no knowledge of
11
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 12 of 25 PageID 12
59. The Acts of Florida and the other states substantially follow the FTC Act.
‘Violation of this part’ means any violation of this act or the rules
adopted under this act and may be based upon any of the following…
material and are likely to and did deceive ordinary consumers acting reasonably, including
the Plaintiffs, into believing that their every move would not be tracked by Apple and then
62. Apple’s omission of its true intent to track users was material to terms and
conditions under which Plaintiffs and Class members purchased their iPhones and iPads. An
act or practice is material if it is likely to affect a consumer’s decision regarding the product.
Plaintiffs and other users would not have purchased Apple products and indeed would have
purchased the products of a competitor had they known that their every movement would be
63. Here, Apple specifically omitted from its privacy policy any indication
express claims on their Products, knowing that such disclosure would prevent consumers
6
Fla. Stat. § 501.203(3).
12
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 13 of 25 PageID 13
64. Florida’s Act declares the acts and omissions of Apple to be unlawful. The
statute says:
65. Apple’s practices have caused substantial injury to Plaintiffs and Class
members by depriving them of money they would have spent elsewhere and by covertly
66. Apple’s unfair omissions injure both consumers and competition. Consumers
are injured in all the ways that Plaintiffs have been injured, as described throughout this
complaint, and competition suffers in several ways too: (1) honest companies that do not
covertly track their customers’ locations have lost and continue to lose market share to Apple
products as already described; (2) Apple is rewarded for its deceit with billions of dollars in
revenues (which should all be disgorged); and (3) competitors behaving deceptively creates a
“race to the bottom,” wherein additional companies feel economic pressure to similarly track
users’s whereabouts to later sell and thereby avoid losing further market share in the rapidly
growing and competitive market for precise consumer demographic, location and other data.
competition.
13
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 14 of 25 PageID 14
67. Apple violated and continues to violate the Acts of each state by engaging in
the trade practices described above, that has caused and continues to cause substantial injury
transactions with Plaintiffs and the Class which were intended to result in, and did result in,
business interests, other than the conduct described herein. Apple, for example, could have
abstained from tracking the exact locations of users of its products. Apple also could have
required a single sentence disclosure describing its rampant covert tracking of individual
69. This cause of action is brought by Plaintiff William Devito pursuant to New
York’s deceptive business practices laws. See N.Y. Exec. Law § 63(12), N.Y. Gen. Bus.
70. New York prohibits “[d]eceptive acts or practices in the conduct of any
71. Apple’s act of tracking its users was “consumer-oriented” because it preys on
Apple’s own purchasers only. See Stutman v. Chemical Bank, 731 N.E.2d 608, 611 (N.Y.
2000).
72. Apple’s act of tracking its users is misleading in a material way because
Apple fails to disclose, or event hint at, the full extent of its user location tracking in the
Apple privacy policy terms and conditions. Apple’s acts have a broad impact on consumers
14
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 15 of 25 PageID 15
at large because Apple’s inadequate disclosures, coupled with its unlawful tracking continue
73. Plaintiffs and Class members have suffered injury as a result of Apple’s
deceptive acts and omissions because Plaintiffs would have not bought Apple devices had
74. Plaintiffs have suffered injury as a direct and proximate result of Apple’s
deceptive acts, practices and omissions. Injury includes Plaintiffs’ purchases of their Apple
devices. Actual injury to Plaintiffs also includes the collection of their private location
information and the continued existence of databases of that same information – databases
75. Apple willfully and knowingly violated § 349(a) and is therefore subject to
three times the actual damages suffered by Plaintiffs and the Class.
76. Apple deceived Plaintiffs and consumers, and treated them unfairly by
tracking their movements as described above, and violated the Acts of each state by omitting
15
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 16 of 25 PageID 16
k. Georgia’s Uniform Deceptive Trade Practices Act, and also the Fair
Business Practices Act. Ga. Code §§ 10-1-370 et seq., and §§ 10-1-
390 et seq.;
s. Maine’s Unfair Trade Practices Act, and also its Uniform Deceptive
Trade Practices Act. Me. Rev. Stat., Title 5 §§ 205-A et seq., and
Title 10 §§ 1211 et seq., respectively;
16
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 17 of 25 PageID 17
bb. Nevada’s Trade Regulation and Practices Act. Nev. Rev. Stat. §§
598.0903 et seq., and § 41.6000;
dd. New Jersey’s Consumer Fraud Act. N.J. Stat. §§ 56:8-1 et seq.;
ee. New Mexico’s Unfair Practices Act. N.M. Stat. §§ 57-12-1 et seq.;
ff. New York’s Act. N.Y. Exec. Law § 63(12), N.Y. Gen. Bus. Law §§
349 et seq.;
hh. North Dakota’s Consumer Fraud Act. N.D. Cent. Code §§ 51-15-01
et seq.;
17
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 18 of 25 PageID 18
ii. Ohio’s Consumer Sales Practices Act, and also its Deceptive Trade
Practices Act. Ohio Rev. Code §§ 1345.01 et seq., and §§ 4165.01 et
seq.;
jj. Oklahoma’s Consumer Protection Act, and also its Deceptive Trade
Practices Act. Okla. Stat., Title 15 §§ 751 et seq., Title 78 §§ 51 et
seq., respectively;
kk. Oregon’s Unlawful Trade Practices Law. Or. Rev. Stat. §§ 646.605
et seq.;
mm. Rhode Island’s Unfair Trade Practices and Consumer Protection Act.
R.I. Gen Laws §§ 6-13.1-1 et seq.;
nn. South Carolina’s Unfair Trade Practices Act. S.C. Code §§ 39-5-10
et seq.;
rr. Utah’s Unfair Practices Act, and its Consumer Sales Practices Act,
and also its Truth in Advertising Act. Utah Code §§ 13-2-1 et seq.,
13-5-1 et seq., and §§ 13-11-1 et seq., and also §§ 13-11a-1 et seq.,
respectively;
ss. Vermont’s Consumer Fraud Act. Vt. Stat., Title 9 §§ 2451 et seq.;
vv. West Virginia’s Consumer Credit and Protection Act. W. Va. Code
§§ 46A-6-101 et seq.;
18
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 19 of 25 PageID 19
yy. the equivalent and applicable laws in the other remaining U.S.
territories.
77. Apple is liable for attorney’s fees and reasonable costs pursuant to Fla. Stat. §
501.2105, and the comparable statutes of the other states, as described above, if Plaintiff and
80. Violations of the relevant computer laws, both federal and state, also serve as
81. Plaintiff and the Class reserve the right to allege other violations of law which
constitute other unlawful business acts or practices. Such conduct is ongoing and continues
to this date.
COUNT IV
(Fraudulent, Intentional Misrepresentation)
the paragraphs above, and those that come after as if fully set forth here.
83. Apple represented to Plaintiffs and Class members that it would not collect
information about their every movement and location, and omitted disclosing this to
Plaintiffs. See Essex Ins. Co. v Universal Entertainment & Skating Center, Inc., 665 So. 2d
84. Apple not only knew that its privacy terms and conditions policy was, and
continues to be, false, deceptive and untrue, by omitting that Apple will track users, but
19
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 20 of 25 PageID 20
Apple also intended for Plaintiffs and Class members to rely on its deceptive statements.
85. Apple’s fraud is comprised both the omissions of proper disclosures to its
86. Plaintiffs and Class members did not know about Apple’s omissions.
87. Plaintiffs and Class members did not know that Apple has been tracking their
movements.
Plaintiffs’ and Class members’ reliance on Apple’s omissions was a substantial factor in
causing their harm. Apple’s tracking of users was and is material, and Plaintiffs and Class
members reasonably believed that their every movement would not be tracked.
89. Plaintiffs and Class members were damaged in the amount of money required
90. Plaintiff and the Class seek punitive damages from Apple.
91. Apple had and continues to have a duty of good faith, which implicitly
includes a duty not to deceive consumers, and also not to conduct this sort of covert digital
surveillance on consumers. And they certainly have a duty not to stalk consumers. But that
clarifying statements during the sales process, Plaintiffs and Class members seek to rescind
the contracts, and thereby disgorge all monies paid to Apple for these products.
20
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 21 of 25 PageID 21
COUNT V
(Negligent Misrepresentation)
the paragraphs above, and those that come after as if fully set forth here.
94. Apple omitted a material fact – that purchasers would be tracked at all times –
95. Apple was negligent in making the omission because it should have known
that whether their every movements would be tracked, recorded and stored for later use was
material to consumers.
96. Apple, in making that omission intended, or expected, that Plaintiffs and Class
purchasers, and would not have purchased Apple’s products but for the omission. Plaintiffs
were damaged in amounts equal to the price they paid for Apple products.
98. Apple’s omissions were material and directly and proximately caused
ordinary consumers acting reasonably, Plaintiffs and Class members included, to buy the
iPhone and iPad products. Without Apple’s omissions of its covert intentions, the products
would not have been purchased, and Plaintiffs would not have suffered damages.
COUNT VI
(Unjust Enrichment, Money Had and Received)
the paragraphs above, and those that come after as if fully set forth here.
21
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 22 of 25 PageID 22
alter ownership rights.7 Here, Apple’s omissions made Plaintiffs and Class members believe
that a term material to the contract was different than it actually was. Morally and ethically –
and therefore, in equity – the Apple has gained a benefit for which it has not exchanged the
promised consideration. Apple promised products capable of certain tasks, but instead, like
the Trojan Horse, delivered products to spy on Plaintiffs and Class members and to sell their
102. Apple, through the omission of its true intentions, cultivated in consumers a
mistake of fact that would not have existed but for Defendant’s intentional omissions.
benefit to Apple by purchasing its products and then being tracked everywhere they
transaction because it was enriched in the amount Plaintiffs paid for the iPhone and iPad.
104. Plaintiffs have no adequate remedy at law due to the difficulty of quantifying
damages caused by being tracked, having that location information stored or downloaded on
private location information of Plaintiffs, their families, Class members and future
105. Plaintiffs and Class members lacked the requisite intent to form a contract for
the products that they actually received. There can be no valid contract without intent.
7
See Restatement, Third, of Restitution and Unjust Enrichment, § 1, comment b (Discussion Draft 2000).
22
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 23 of 25 PageID 23
106. Products supplied were inadequate consideration for the monies paid. These
107. Apple accepted and retained money paid to it by Plaintiffs. The affirmative,
reasonably relied upon, in combination with Apple’s blatant breach of Plaintiffs’ privacy,
constitute circumstances that make it inequitable for Apple to retain Plaintiff’s money.
COUNT VII
(Violations of Computer Crimes Acts)
the paragraphs above, and those that come after as if fully set forth here.
110. “‘access’ means to approach, instruct, communicate with, store data, retrieve
data, or otherwise make use of any resources of a computer….” Fla. Stat. § 815.03(10).
part, is owned by…another commits an offense against computer users.” Fla. Stat. § 815.06.
23
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 24 of 25 PageID 24
114. Plaintiffs’ iPhones and iPads are “computers” within the definitions of both
116. Plaintiffs were directly and proximately damaged in the amount they paid for
the Products.
C. For judgment on behalf of the Class as defined herein for the amount
F. For such other and further relief as this Court deems equitable or just
24
Case 8:11-cv-00895-RAL-TBM Document 1 Filed 04/22/11 Page 25 of 25 PageID 25
Plaintiffs, on behalf of themselves and all others similarly situated, hereby demand a
Respectfully submitted,
s/ Aaron Mayer
Aaron C. Mayer
FBN: 0076983
MAYER LAW GROUP
18 Carolina St., Suite B
Charleston, SC 29403
T: (843) 376-4929
F: (888) 446-3963
[email protected]
25
Case 8:11-cv-00895-RAL-TBM Document 1-1 Filed 04/22/11 Page 1 of 1 PageID 26