MARGARET M. MORROW, UNITED STATES DISTRICT JUDGE.
On March 6, 2015, Billy Warner filed this putative class action against Tinder Inc. ("Tinder"),
On May 20, 2015, Tinder filed a motion to dismiss the second amended complaint,
This case involves the online dating application known as Tinder (the "Tinder App"). The Tinder App is available for download from most application "stores" and is commonly used on iPhones and Android cellular telephones.
The hallmark of the Tinder App is the "swipe" feature, which allows users to swipe their finger either left or right across the screen to indicate their interest, or lack thereof, in potential matches.
Until early March 2015, it was allegedly free to download and use the Tinder App; users purportedly had access to an unlimited number of swipes.
Warner allegedly began using the Tinder App in early 2014, when he downloaded it to his iPhone via iTunes.
Warner purportedly used the Tinder App for free until March 2015.
Because Rule 12(b)(6) review is confined to the complaint, the court typically does not consider material outside the pleadings (e.g., facts presented in briefs, affidavits, or discovery materials) when deciding such a motion. In re American Continental Corp./Lincoln Sav. & Loan Securities Litig., 102 F.3d 1524, 1537 (9th Cir.1996). It can, however, properly consider exhibits attached to the complaint and documents whose contents are alleged in the complaint but not attached, if their authenticity is not questioned. Lee v. City of Los Angeles, 250 F.3d 668, 688 (9th Cir.2001).
In addition, the court can consider matters that are proper subjects of judicial notice under Rule 201 of the Federal Rules of Evidence. Id. at 688-89; Branch v. Tunnell, 14 F.3d 449, 454 (9th Cir.1994), overruled on other grounds by Galbraith v. County of Santa Clara, 307 F.3d 1119 (9th Cir.2002); Hal Roach Studios, Inc. v. Richard Feiner and Co., Inc., 896 F.2d 1542,
Tinder asks the court to take judicial notice of seven documents.
The court cannot judicially notice any of these documents, because their contents are neither generally known nor capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned. FED.R. EVID. 201. As noted, however, "[a] district court ruling on a motion to dismiss may [also] consider a document the authenticity of which is not contested, and upon which the plaintiffs complaint necessarily relies." Parrino v. FHP, Inc., 146 F.3d 699, 706 (9th Cir.1998), superseded by statute on other grounds as recognized in Abrego Abrego v. The Dow Chemical Co., 443 F.3d 676, 681 (9th Cir.2006). This is so even if plaintiff does not "explicitly allege the contents of th[e] document[s] in the complaint." Knievel v. ESPN, 393 F.3d 1068, 1076 (9th Cir.2005) ("We have extended the `incorporation by reference' doctrine to situations in which the plaintiff's claim depends on the contents of a document, the defendant attaches the document to its motion to dismiss, and the parties do not dispute the authenticity of the document, even though the plaintiff does not explicitly allege the contents of that document in the complaint").
Tinder contends that the second amended complaint necessarily relies on the purported absence of these disclosures in alleging violations of the EFTA and APRS. It asserts that each of the attached exhibits
A Rule 12(b)(6) motion tests the legal sufficiency of the claims asserted in the complaint. A Rule 12(b)(6) dismissal is proper only where there is either a "lack of a cognizable legal theory," or "the absence of sufficient facts alleged under a cognizable legal theory." Balistreri v. Pacifica Police Dept., 901 F.2d 696, 699 (9th Cir.1988). The court must accept all factual allegations pleaded in the complaint as true, and construe them and draw all reasonable inferences from them in favor of the nonmoving party. Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337-38 (9th Cir.1996); Mier v. Owens, 57 F.3d 747, 750 (9th Cir.1995).
The court need not, however, accept as true unreasonable inferences or conclusory legal allegations cast in the form of factual allegations. See Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) ("While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiff's obligation to provide the `grounds' of his `entitle[ment] to relief' requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do"). Thus, a plaintiff's complaint must "contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.' ... A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009); see also Twombly, 550 U.S. at 555, 127 S.Ct. 1955 ("Factual allegations must be enough to raise a right to relief above the speculative level on the assumption that all the allegations in the complaint are true (even if doubtful in fact)" (citations omitted)); Moss v. United States Secret Service, 572 F.3d 962, 969 (9th Cir.2009) ("[F]or a complaint to survive a motion to dismiss, the non-conclusory `factual content,' and reasonable inferences from that content, must be plausibly suggestive of a claim entitling the plaintiff to relief," citing Iqbal and Twombly).
"The UCL prohibits `any unlawful, unfair or fraudulent business act or practice and unfair, deceptive, untrue or misleading advertising.'" Stearns v. Select Comfort Retail Corp., 763 F.Supp.2d 1128, 1148-1149 (N.D.Cal.2010) (quoting CAL. Bus. & PROF. CODE § 17200). "`An act can be alleged to violate any or all of the three prongs of the UCL — unlawful, unfair, or fraudulent.'" Id. (quoting Berryman v. Merit Prop. Mgmt., Inc., 152 Cal.App.4th 1544, 1554, 62 Cal.Rptr.3d 177 (2007)). The law is "sweeping, embracing anything that can properly be called a business practice and at the same time is forbidden by law." Cel-Tech Communications, Inc. v. L.A. Cellular Tel. Co., 20 Cal.4th 163, 180, 83 Cal.Rptr.2d 548, 973 P.2d 527 (1999); see also Palestini v. Homecomings Fin., LLC, No. 10CV1049-MMA, 2010 WL 3339459, *9 (S.D.Cal. Aug. 23, 2010) (same).
"While the scope of conduct covered by the UCL is broad, its remedies are limited. A UCL action is equitable in
The FAL prohibits the dissemination of false or misleading statements in connection with advertising. CAL. BUS. & PROF. CODE § 17500.
Like the UCL, the FAL provides for injunctive and restitutionary relief to a plaintiff who has been harmed by a violation of the statute. See Colgan, 135 Cal. App.4th at 694, 701, 38 Cal.Rptr.3d 36 ("The False Advertising Law ... authorize[s] a trial court to grant restitution to private litigants asserting claims under those statutes.... Section 17535 provides in relevant part: `Any person, corporation, firm, partnership, joint stock company, or any other association or organization which violates or proposes to violate this chapter may be enjoined by any court of competent jurisdiction'"); see also CAL. BUS. & PROF. CODE § 17535 ("Any person, corporation, firm, partnership, joint stock company, or any other association or organization which violates or proposes to violate this chapter may be enjoined by any court of competent jurisdiction").
Tinder contends that Warner's FAL and UCL claims must be dismissed to the extent they are based on "fraudulent" conduct
To allege an FAL or UCL claim predicated on this representation and omission plausibly, Warner must show that "members of the public [were] likely to be deceived." Williams v. Gerber Products Co., 552 F.3d 934, 938 (9th Cir.2008). The challenged conduct "is judged by the effect it would have on a reasonable consumer." Puentes v. Wells Fargo Home Mortg., Inc., 160 Cal.App.4th 638, 645, 72 Cal.Rptr.3d 903 (2008). "Whether a practice is deceptive, fraudulent, or unfair is generally a question of fact that is not appropriate for resolution on the pleadings." Williams, 552 F.3d at 938-39. "However, the court may in certain circumstances consider the viability of the alleged consumer law claims based on its review of the [purportedly misleading representations]." Jones v. ConAgra Foods, Inc., 912 F.Supp.2d 889, 899 (N.D.Cal.2012) (citing Werbel ex rel. v. Pepsico, Inc., No. CV 09-04456 SBA, 2010 WL 2673860, *3 (N.D.Cal. July 2, 2010)). "Thus, where a court can conclude as a matter of law that members of the public are not likely to be deceived..., dismissal is appropriate." Id.
Warner argues first that Tinder falsely represented "that `Tinder is free and is available on iPhone and Android phones,' when in fa[c]t, additional subscription fees are necessary for consumers to meaningfully use the Tinder App."
Even had he adequately alleged a misrepresentation, moreover, Warner's FAL and UCL claims would still have to be dismissed to the extent they seek damages because Warner lacks standing to do so. "The UCL and FAL `limit standing to individuals who suffer losses ... that are eligible for restitution." In re Apple & AT & T iPad Unlimited Data Plan Litig., 802 F.Supp.2d 1070, 1076 (N.D.Cal.2011) (quoting Buckland v. Threshold Enters., Ltd., 155 Cal.App.4th 798, 817, 819, 66 Cal.Rptr.3d 543 (2007)). "Ordinarily when we say someone has `lost' money we mean that he has parted, deliberately or otherwise, with some identifiable sum formerly belonging to him or subject to his control; it has passed out of his hands by some means, such as being spent or mislaid." Silvaco Data Systems v. Intel Corp., 184 Cal.App.4th 210, 244, 109 Cal.Rptr.3d 27 (2010).
Tinder argues, and the court agrees, that advertising the Tinder App as free did not cause Warner to lose any money because Warner does not allege that Tinder charged him money to download the Tinder App. "To show [entitlement] to restitution, a plaintiff must demonstrate that the defendant is in possession of money or property taken from [him or] her." See Asghari v. Volkswagen Group of America, Inc., 42 F.Supp.3d 1306, 1324 (C.D.Cal.2013); Groupion, LLC v. Groupon, Inc., 859 F.Supp.2d 1067, 1083 (N.D.Cal.2012) (holding that restitution was unavailable because plaintiff "ha[d] not submitted any evidence or ... argument, to show that [defendant] obtained money from [plaintiff] or that [plaintiff] otherwise ha[d] any ownership interest [in] any of [defendant's] profits," citing Colgan v. Leatherman Tool Group, Inc., 135 Cal.App.4th 663, 699, 38 Cal.Rptr.3d 36 (2006) (a plaintiff can seek money or property as restitution only when the "money or property identified as belonging in good conscience to the plaintiff [can] clearly be traced to particular funds or property in the defendant's possession")); Hill v. Opus Corp., 464 B.R. 361, 394 (C.D.Cal.2011) (restitution is not available where the money claimed by plaintiff cannot be "traced to any particular funds in [defendants'] possession"); see also Bank of the West v. Superior Court, 2 Cal.4th 1254, 1268, 10 Cal.Rptr.2d 538, 833 P.2d 545 (1992) (when restitution is ordered, "defendant is asked to return something he wrongfully received; he is not asked to compensate the plaintiff for injury suffered as a result
Warner next alleges that Tinder violated the FAL and the fraudulent prong of the UCL by "advertis[ing] [first that] the Tinder Pro App [w]as ... $2.99 per month, and unilaterally chang[ing] the price to $19.99 per month after [he] had purchased the subscription."
Under California law, there are "four circumstances in which nondisclosure or concealment may constitute actionable fraud: (1) when the defendant is in a fiduciary relationship with the plaintiff; (2) when the defendant had exclusive knowledge of material facts not known to the plaintiff; (3) when the defendant actively conceals a material fact from the plaintiff; and (4) when the defendant makes partial representations but also suppresses some material facts." LiMandri v. Judkins, 52 Cal.App.4th 326, 336, 60 Cal.Rptr.2d 539 (1997) (quoting Heliotis v. Schuman, 181 Cal.App.3d 646, 651, 226 Cal.Rptr. 509 (1986)). Tinder does not address these factors, nor does it discuss the materiality of the purported omission. Thus, the court assumes without deciding that Warner's complaint plausibly alleges that Tinder concealed material facts by "fail[ing] to disclose to [him] or other consumers that it reserved the right to change its price at any time and at its sole discretion, and [that] this omission was material to [his] purchase of the Tinder Pro account for $2.99 per month."
Even assuming the omission would plausibly misled a reasonable consumer, however, Warner does not allege a cognizable injury in fact. "Courts have held that being induced to purchase a product one would not otherwise have purchased is not loss of money or property within the meaning of the statute as long as one still receives the benefit of the bargain." Koh v. S.C. Johnson & Son, Inc., No. C-09-0927 RMW, 2010 WL 94265, *2 (N.D.Cal. Jan. 6, 2010); Hall v. Time, Inc., 158 Cal.App.4th 847, 854-55, 70 Cal.Rptr.3d 466
The same is true here. Warner does not allege that he did not want Tinder Plus (at any price), that Tinder Plus was unsatisfactory, or that Tinder Plus was worth less than what he paid for it. He has therefore not pled that he suffered a loss capable of restitution under the FAL or UCL. See id. See also Klein v. Avis Rent a Car Sys. Inc., No. CV 08-0659 AHM (VBKx), 2009 WL 151521, *4 (C.D.Cal. Jan. 21, 2009) ("What Plaintiff has not alleged is that their conduct caused him to pay more than he would have had Defendants been licensed.... The Court therefore grants the motion to dismiss the UCL claim, but gives Plaintiff leave to amend the allegations"); Koh, 2010 WL 94265 at *2 ("being induced to purchase a product one would not otherwise have purchased is not loss of money or property within the meaning of the statute as long as one still receives the benefit of the bargain"); Medina v. Safe-Guard Products, 164 Cal.App.4th 105, 114, 78 Cal.Rptr.3d 672 (2008) ("Medina has not alleged that he didn't want wheel and tire coverage in the first place, or that he was given unsatisfactory service or has had a claim denied, or that he paid more for the coverage than what it was worth because of the unlicensed status of Safe-Guard. He hasn't suffered any loss because of Safe-Guard's unlicensed status"). Consequently, the FAL claim must be dismissed in its entirety, and the UCL claim must be dismissed to the extent premised on the purportedly false or misleading misrepresentations and omissions.
Tinder also argues, and the court agrees, that Warner's UCL claim fails to the extent it is based on the unlawful prong of the statute because he has not adequately alleged that Tinder engaged in any unlawful conduct. This is because all of his substantive claims fail. Where the predicate claims on which a plaintiff's UCL claim are based fail, the UCL claim fails as well. See Khan v. CitiMortgage, Inc., 975 F.Supp.2d 1127, 1146 (E.D.Cal.2013) ("The FAC lacks facts of an unlawful, unfair or fraudulent business practices to support a UCL claim, despite Ms. Khan's unsubstantiated claims.... As demonstrated throughout this order, the complaint's claims fail and thus cannot serve as a predicate violation for a UCL claim"); Bejou v. Bank of Am., N.A., No. CV F 13-0125 LJO SMS, 2013 WL 1759126, *5 (E.D.Cal. Apr. 24, 2013) ("Reliance on other invalid claims fails to support a viable UCL claim").
For these reasons, both his UCL and FAL claims must be dismissed in full.
Although Tinder does not raise the point, and the court does not dismiss on this basis as a result, the court notes that both the FAL and UCL claims fail for
In Sullivan, the California Supreme Court explicitly held that this presumption applied to the UCL, noting that "[n]either the language of the UCL nor its legislative history provides any basis for concluding the Legislature intended the UCL to operate extraterritorially," and concluding that the presumption against extraterritoriality "applies to the UCL in full force." Id.; Norwest Mortgage, Inc. v. Superior Court, 72 Cal.App.4th 214, 222, 85 Cal.Rptr.2d 18 (1999) ("[The UCL is not] applicable to claims of non-California residents injured by conduct occurring beyond California's borders"); see also Badella v. Deniro Marketing LLC, No. C 10-03908 CRB, 2011 WL 5358400, *11 (N.D.Cal. Nov. 4, 2011) ("[T]he Court recognizes that extraterritorial application of the UCL is improper where non-residents of California raise claims based on conduct that allegedly occurred outside of the state," citing Sullivan v. Oracle Corp., 547 F.3d 1177, 1187 (9th Cir.2008)). "Courts have [also] recognized that the FAL is limited to application in California." In re Toyota Motor Corp., 785 F.Supp.2d 883, 918 (C.D.Cal. 2011); Churchill Village, L.L.C. v. Gen. Elec. Co., 169 F.Supp.2d 1119, 1127 (N.D.Cal.2000) ("[T]he FA[L] contains language that could be interpreted to limit the statute's extraterritorial application. Section 17500 prohibits false or misleading statements made `before the public in this state' and `from this state before the public in any state.' In the instant action, none of defendant's written or oral communications made in California was directed to consumers outside the state. Thus, only California consumers can proceed on a claim under the FA[L]"), aff'd, 361 F.3d 566 (9th Cir.2004).
"In determining whether the UCL... appl[ies] to non-California residents, courts consider where the defendant does business, whether the defendant's principal offices are located in California, where class members are located, and the location from which [the relevant] decisions were made." Toyota Motor Corp., 785 F.Supp.2d at 917. Here, Warner alleges that he is a resident of Florida.
Because Warner does not adequately allege whether decisions concerning Tinder's business practices and advertising emanated from California, and does not plead facts demonstrating that this is so, his UCL claim fails. Because he does not allege that he viewed any advertisements as a consumer in California, his FAL claim similarly fails. Warner should not replead these claims if he cannot, consistent with Rule 11, cure these deficiencies.
Warner fails plausibly allege to that Tinder misrepresented that the Tinder App was free. Moreover, he fails to allege any injury in fact resulting from any misrepresentation or omission. Finally, because all of his other claims fail, Warner does not adequately allege unlawful conduct for purposes of the UCL. Warner's UCL and FAL claims must thus be dismissed.
Tinder argues that Warner's APRS claim must also be dismissed because he is not a California citizen. The court agrees. Section 17602(a) provides that it "shall be unlawful for any business making an automatic renewal or continuous service offer to a "consumer in this state" to engage in certain conduct. CAL. BUS. & PROF. CODE 17602(a) (emphasis added). As alleged in the second amended complaint, Warner is not a "consumer in this state." "The Legislature employed
Under the EFTA, "[a] preauthorized electronic funds transfer from a consumer's account may be authorized by a consumer only in writing, and a copy of such authorization shall be provided to the consumer when made." 15 U.S.C. § 1693e(a). A "preauthorized electronic fund transfer" is defined as "an electronic fund transfer authorized in advance to recur at substantially regular intervals." 12 C.F.R. § 1005.2(k). "Written authorization" from the consumer can be provided electronically. See Berry v. Webloyalty.com, Inc., 2011 WL 1375665 at *8 (S.D.Cal. Apr. 11, 2011) (citing 15 U.S.C. § 7006(5) ("The term `electronic signature' means an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record")).
Warner asserts, in conclusory fashion, that Tinder "has debited [his] and also the EFTA [s]ubclass members' bank accounts on a recurring basis without obtaining a written authorization signed or similarly authenticated for preauthorized electronic fund transfers from [his] and also the EFTA [s]ubclass members' accounts, thereby violating ... the EFTA."
To the extent Warner contends that his purchase of Tinder Plus for $19.99 canceled
Warner also argues that Tinder discriminated him in violation of the Unruh Act by charging individuals over 30 years of age a higher price for Tinder Plus ($19.99) than people under 30 ($9.99). Tinder argues that Warner's Unruh Act claim must be dismissed because the statute applies only to discrimination occurring within California, i.e., it does not have extraterritorial reach. The Unruh Act protects "[a]ll persons within the jurisdiction" from certain enumerated forms of discrimination. CAL. CIV. CODE § 51(b). Thus, by its own terms, it is expressly limited to discrimination that takes place within California's borders. See Tat Tohumculuk, A.S. v. H.J. Heinz Co., No. CV 13-0773 WBS KJN, 2013 WL 6070483, *7 (E.D.Cal. Nov. 14, 2013) ("The Unruh Act, too, has limited geographic scope. Plaintiff contends that, because the alleged discrimination was approved by defendants' officers in California, section 51 applies. The plain language of the statute, however, regards access by "persons within the jurisdiction of" California. Plaintiff has not presented any case law, nor is the court aware of any, applying section 51 to alleged discrimination suffered by parties outside California. The Unruh Act, therefore, does not apply"); Keum v. Virgin Am. Inc., 781 F.Supp.2d 944, 955 (N.D.Cal.2011) ("The Unruh Act only applies to discrimination that takes place within California's jurisdiction"); Loving v. Princess Cruise Lines, Ltd., No. CV 08-2898 JFW (AJWx), 2009 WL 7236419, *8 (C.D.Cal. Mar. 5, 2009) ("Plaintiffs' state law claims also do not have extraterritorial reach. It is well-settled that the Unruh Act applies only within California," citing, e.g., Archibald v. Cinerama Hawaiian Hotels, Inc., 73 Cal.App.3d 152, 159, 140 Cal.Rptr. 599 (1977) ("[The Unruh Act] by its express language applies only within California")); Sousanis v. Northwest Airlines, Inc., No. CV 99-2994 MHP, 2000 WL 34015861, *7 (N.D.Cal. Mar. 3, 2000) ("Quite the opposite, the Unruh Act contains language expressly limiting its reach to `all persons within the jurisdiction of this state'"). The "complaint [does] not allege that [the discrimination against Warner] took place in California," which renders it subject to dismissal. See Keum, 781 F.Supp.2d at 955.
For the reasons stated, the court grants Tinder's motion to dismiss with leave to amend. See In re Daou Sys., Inc., 411 F.3d 1006, 1013 (9th Cir.2005) ("Dismissal without leave to amend is improper unless it is clear ... that the complaint could not be saved by any amendment"); California ex rel. California Department of Toxic Substances Control v. Neville Chemical Co., 358 F.3d 661, 673 (9th Cir.2004) ("[D]enial of leave to amend is appropriate
Warner may not plead additional claims or add allegations that are not intended to cure the specific defects the court has noted. Should any amended complaint exceed the scope of leave to amend granted by this order, the court will strike the offending portions under Rule 12(f). See FED. R. CIV. PROC. 12(f) ("The court may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter. The court may act: (1) on its own; or (2) on motion made by a party either before responding to the pleading or, if a response is not allowed, within 21 days after being served with the pleading."); see also Barker v. Avila, No. 2:09-cv-00001-GEB-JFM, 2010 WL 3171067, *1-2 (E.D.Cal. Aug. 11, 2010) (striking an amendment to federal law claim where the court had granted leave to amend only state law claims).