Doe v. Epic Games, Inc.

435 F.Supp.3d 1024 (2020)

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Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

P, by and through his guardian Jane Doe, brings this putative class action against D arising out of P's in-application purchases made while playing D's video game, Fortnite. Fortnite is 'an open-world survival video game in which players collect weapons, tools, and resources . . . in order to survive and advance in the game.' The game can be downloaded at no cost but allows players to make 'in-app purchases' using virtual currency called 'V-Bucks,' which can be earned through gameplay or purchased for money. One hundred V-Bucks generally cost around $1.00. A player can obtain V-Bucks at a discount for purchasing a higher quantity. On certain platforms, D may refund a total of three items during the lifetime of the user if those purchases were made within the previous 30 days. Other purchases are non-refundable. Players allegedly do not have access to their historical purchases. P is a minor who created a Fortnite account on March 4, 2018. P accepted the terms of D's End User License Agreement (EULA) by first clicking a box that read, 'I have read and agree with the End User License Agreement,' and then clicking a button that read, 'Accept.' The EULA has a forum selection clause listed as the Superior Court of Wake County, State of North Carolina, or the United States District Court for the Eastern District of North Carolina. Under the EULA, amendments were at the discretion of D, and if unacceptable, the sole remedy was for a user to terminate the agreement. Continued use of the software demonstrated acceptance of the amended agreement. P never read any of the amendments or contracts presented, nor did P's parents seek, read, or agree to the EULA. D modified the agreement to require mandatory arbitration and to give up the right to a class action. It also required that anyone agreeing to D’s license must be an adult, and if underage, a parent or legal guardian must accept on the minor’s behalf. Of course, continued use of the software would demonstrate acceptance of the amended agreement. P's parents allegedly did not see, read, or agree to the amended EULA. On May 17, 2019, P's counsel sent a letter to D in which counsel claimed that D had 'specifically target[ed] minors for in-App Purchases' without 'including any provisions to get parental consent before making purchases.' Counsel also stated P had a right to legally disaffirm in-App purchases,' including purchases that were made by using P's own money. The letter purported to put D on 'notice of [its] violations of the state laws of California,' and 'demanded that D rectify its policies regarding non-refundable in-App purchases. P threatened to file a class action complaint. The letter further stated that P wished to remain anonymous, describing him as 'a minor residing in California' and 'a player of Fortnite.' On June 21, P filed this class action suit. P had made several non-refundable in-app purchases using V-Bucks using his own money, through gift cards received on social occasions. P alleges that he made these purchases without understanding the dollar amounts involved, and although he later wanted to cancel the purchases, he was not allowed to do so under D's non-refundable policy. Plaintiff brought claims for declaratory judgment; violation of the California Consumer Legal Remedies Act, Cal. Civ. Code § 1750, et seq. (CLRA); breach of duty of good faith and fair dealing; negligent misrepresentation; violation of California Business & Professions Code § 17200 et seq. (UCL); and restitution or unjust enrichment. Pending before the court are three motions by D.

Issues

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Holding & Decision

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Legal Analysis

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