This putative worldwide class action is brought by one hundred and twenty-two Plaintiffs who hale from the fifty states and several U.S. territories as well as multiple foreign countries.
Apple moves to dismiss claims in the Consolidated Amended Complaint ("Complaint") under Federal Rule of Civil Procedure 12(b)(6). The Court finds that some of Plaintiffs' allegations are at full capacity, but others need to be recharged. The Court GRANTS in part and DENIES in part Apple's motion to dismiss.
I. BACKGROUND
This case primarily concerns Apple's response to software capability and battery capacity issues in certain older-model iPhones and iPads. The following facts are drawn from Plaintiffs' Complaint.
Beginning in late 2015, consumers began reporting that their iPhone and iPad devices were experiencing unexpected shutdowns despite showing more than 30% remaining charge on the battery. CAC ¶¶ 2-3. When the device shut down, it would remain dead until the user reconnected the device to power. Id. ¶ 4. The number of complaints increased through the fall of 2016. Id. ¶¶ 2-3. At the end of 2016, Apple suggested that a remedy would be forthcoming in the next round of software updates. Id. ¶ 7.
On January 23, 2017, Apple released iOS 10.2.1, an update to its iOS 10 operating system. Id. ¶¶ 359, 398. The update was sent directly to users' iPhone and iPad devices, and users had the option of downloading and installing the update on their *441devices. Id. ¶¶ 359, 386-87. The alert that accompanied the update stated that the "update include[d] bug fixes and improve[d] the security of [the user's] iPhone or iPad." Id. ¶¶ 360, 399. In February 2017, Apple added more information in a "Read Me" section which stated: iOS 10.2.1 "improves power management during peak workloads to avoid unexpected shutdowns on iPhone." Id. ¶ 400. In a statement issued at the end of February 2017, Apple explained that " "[w]ith iOS 10.2.1, Apple made improvements to reduce occurrences of unexpected shutdowns that a small number of users were experiencing with their iPhone." Id. ¶ 401.
On September 19, 2017, Apple released a new version of its operating system, iOS 11. Id. ¶ 406. When consumers with older-model iPhone and iPad devices downloaded iOS 11, they experienced a marked decrease in battery life from the prior iOS 10 operating system. Id. ¶¶ 407-08. On December 2, 2017, Apple released iOS 11.2. Id. ¶ 363. Like the iOS 10.2.1 update, the iOS 11.2 update was sent directly to users' iPhone and iPad devices, and the update was available for immediate download and installation on their devices. Id. ¶¶ 363, 386-87. The alert accompanying the update stated, among other things, that the update "include[d] bug fixes and improvements." Id. ¶ 363.
In mid-December 2017, independent research was published online "demonstrating the marked degradation of performance in a large sampling of ... Devices after installation of the [iOS 10.2.1 and 11.2] Updates." Id. ¶ 11. For example, software engineer John Poole "published a report based on an analysis of 100,000 iPhones and conclud[ed] that the decrease in performance of the affected iPhones was caused by the iOS 10.2.1 and iOS 11.2 updates, and not the normal decreased function that would be caused by an aging battery." Id. ¶ 410. On December 20, 2017, Apple released a statement about the iOS 10.2.1 and 11.2 updates:
Last year we released a feature for iPhone 6, iPhone 6s and iPhone SE to smooth out the instantaneous peaks only when needed to prevent the device from unexpectedly shutting down during these conditions. We've now extended that feature to iPhone 7, with iOS 11.2, and plan to add support for other products in the future.
Id. ¶ 11. Apple also asserted that "another contributor to these user experiences is the continued chemical aging of the batteries in older iPhone 6 and iPhone 6s devices, many of which are still running on their original batteries." Id. ¶ 415.
Then, on December 28, 2017, Apple released another statement that confirmed some consumers' suspicions that the iOS updates had intentionally slowed down the processing speeds of iPhone 6 and iPhone 7 models. Id. ¶ 20. Apple's statement read:
iOS 10.2.1 (released January 2017) includes updates for previous models of iPhone to prevent them from unexpectedly shutting down. This includes a feature for iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, and iPhone SE to dynamically manage the instantaneous performance peaks, only when needed, to prevent the device from unexpectedly shutting down. This capability was also extended to iPhone 7 and iPhone 7 Plus with iOS 11.2, and we will continue improving our power management feature in the future. This feature's only intent is to prevent unexpected shutdowns so that the iPhone can still be used. This power management feature is specific to iPhone and does not apply to any other Apple products.
This power management works by looking at a combination of the device temperature, battery state of charge, and *442battery impedance. Only if these variables require it, iOS will dynamically manage the maximum performance of some system components, such as the CPU and GPU, in order to prevent unexpected shutdowns. As a result, the device workloads will self-balance, allowing a smoother distribution of system tasks, rather than larger, quick spikes of performance all at once. In some cases, a user may not notice any differences in daily device performance. The level of perceived change depends on how much power management is required for a particular device.
According to Plaintiffs, Apple's iOS updates were symptomatic of a greater defect that was present in older-model iPhone and iPad devices from the date of purchase.
A number of class action lawsuits were filed by consumers against Apple. These lawsuits generally alleged that Apple's conduct violated federal and state computer-intrusion laws, as well as state consumer-protection laws and common law. In early 2018, one of the plaintiffs who filed a class action in this district moved to centralize pretrial proceedings in a single judicial district.
At the April 25, 2018 initial case management conference, the Court suggested-and the parties agreed-to proceed with a motion to dismiss on a limited set of claims in Plaintiffs' forthcoming consolidated complaint. Dkt. No. 23 at 24:13-26:7. In the subsequent case management orders *443filed on April 26, 2018 and May 18, 2018, the Court solicited the parties' "proposals for proceeding on a limited set of claims in the consolidated complaint." Dkt. Nos. 101 at 1, 21 at 1.
On July 2, 2018, Plaintiffs filed their Complaint, which asserts seventy-six causes of action under one federal statute, all fifty states' statutes, and the common law on behalf of a global class of consumers from the fifty states and other territories of the United States as well as multiple foreign countries. See generally CAC. Plaintiffs proposed "prioritiz[ing] the California statutory claims (Counts 2 through 5), the Trespass to Chattels common law claim (Count 6) and the federal Computer Fraud and Abuse Act claim (Count 1) for the upcoming Motion to Dismiss." Dkt. No. 153 at 3. Apple proposed focusing on two threshold issues: "(1) Plaintiffs' attempt to assert claims on behalf of non-U.S. residents; and (2) the conclusory allegations seeking to expand this case to include iPad devices."
The Court concluded that Apple's motion to dismiss would be "limited to the six claims identified by Plaintiffs and the two threshold issues identified by Apple." Dkt. No. 163 at 1. Thus, Apple would be permitted to challenge Plaintiffs' claims for (1) violations of the federal Computer Fraud and Abuse Act ("CFAA"),
Apple filed its motion to dismiss on August 9, 2018. ECF No. 176 ("Mot."). Plaintiffs filed their opposition on September 3, 2018. ECF No. 194 ("Opp."). Apple filed its reply on September 14, 2018. ECF No. 197 ("Reply").
II. LEGAL STANDARD
A motion to dismiss under Rule 12(b)(6) tests the legal sufficiency of claims alleged in the complaint. Fed. R. Civ. P. 12(b)(6) ; Conservation Force v. Salazar,
Consumer-protection claims that sound in fraud are subject to the heightened *444pleading requirements of Federal Rule of Civil Procedure 9(b). Vess v. Ciba-Geigy Corp. USA,
III. DISCUSSION
The Court first addresses Apple's threshold argument with respect to the claims brought by the non-U.S. Plaintiffs. The Court then addresses the adequacy of Plaintiffs' allegations as to each of their claims, grouping together claims related to computer intrusion and claims related to consumer protection.
A. Claims Brought By Non-U.S. Plaintiffs
Apple first seeks to excise from this case all claims brought by non-U.S. Plaintiffs. Mot. at 7. Apple advances four arguments in this respect: (1) allowing non-U.S. Plaintiffs to pursue claims would raise practical and constitutional problems, (2) the non-U.S. Plaintiffs may not invoke California law, (3) the federal and California laws at issue do not apply extraterritorially, and (4) the Court should exercise its discretion to dismiss the claims under U.K. law under the doctrine of international comity or forum non conveniens. Id. at 7-18. The Court proceeds through each of these bases for dismissal in turn.
1. Practical and Constitutional Problems
Apple's opening, and most amorphous, contention is that multiple significant practical and constitutional concerns will arise from the adjudication of claims by consumers in 40 foreign countries. Mot. at 7. For example, Apple asserts that it will be unable to conduct certain forms of discovery and that notice to the members of a putative or certified class will be prohibitive, if not impossible. Id. at 8. Similarly, Apple presents declarations to the effect that a judgment in this action would not bind non-U.S. customers and would not have preclusive effect in many of the countries sought to be included. Id. at 8-10.
Many of the concerns that Apple raises are substantial and potentially well-founded. But Apple brings its motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) for "failure to state a claim upon which relief can be granted." And Apple's identified practical and constitutional concerns do not supply a basis to conclude that the non-U.S. Plaintiffs have failed to state a claim. Nor does Apple explicitly argue that this Court lacks subject matter jurisdiction over the non-U.S. Plaintiffs' claims or in personam jurisdiction over the non-U.S. Plaintiffs.
The issues identified by Apple are better addressed at a later stage of the proceedings, such as class certification. At this point, it is not even clear that Plaintiffs *445will propose inclusion of foreign citizens in the class. Indeed, one of Apple's own authorities deferred consideration of potential enforceability issues to the class certification stage "because, should plaintiffs limit their class to U.S. citizens, defendants' concerns will evaporate." In re Assicurazioni Generali S.p.A. Holocaust Ins. Litig.,
2. Application of California Law
Apple next contends that the non-U.S. Plaintiffs' claims should be dismissed because they "offer no basis for applying California law." Mot. at 10. In other words, Apple asks the Court to conduct a choice-of-law analysis. Plaintiffs contend that the choice-of-law inquiry begins and ends with Apple's own iOS software license agreement, which all users worldwide must accept to use Apple's iOS software. CAC ¶ 446. According to Plaintiffs, that agreement mandates application of California law to the claims of all Plaintiffs (except U.K. Plaintiffs, who are expressly carved out). Id. ¶¶ 276-79; id., Ex. 5 ¶ 12. Apple responds that its hardware warranty should apply because this case does not involve a license dispute. Mot. at 11. The parties also squabble over the appropriate application of California's governmental interests choice-of-law test. Compare id. at 11-13, with Opp. at 28-30.
"A federal court sitting in diversity must look to the forum state's choice of law rules to determine the controlling substantive law." Zinser v. Accufix Research Inst., Inc.,
Nedlloyd instructs courts to "first examine the choice-of-law clause and ascertain whether the advocate of the clause has met its burden of establishing that the various claims of putative class members fall within its scope." Wash. Mut. Bank,
The California Supreme Court in Nedlloyd explained that "[t]he phrase 'governed by' is a broad one signifying a relationship of absolute direction, control, and restraint."
Although Nedlloyd dealt with an agreement between sophisticated businesspeople, its principles are "suitable for a broader range of contract transactions," including contracts of adhesion between consumers and corporations. Wash. Mut. Bank,
In arguing to the contrary, Apple gets its wires crossed. Apple relies on a case in which the clause at issue "merely identifie[d] the law that govern[ed] the contract, not the forum in which suit [could] be brought." Khokhar v. Yousuf, No. 15-CV-06043-SBA,
*447CAC ¶ 273; see
Apple's remaining arguments are equally unavailing. Apple says that the software license agreement is not "applicable on its face" because this case does not involve a license dispute. Reply at 4. However, Apple does not even acknowledge Nedlloyd in making this argument. Instead, Apple falls back on the general proposition that "choice-of-law agreements have no effect in a class action if the trial court determines that ... class claims fall outside their scope." Wash. Mut. Bank,
Once a court finds that the claims fall within the scope of the choice-of-law clause, it must then consider whether the clause is enforceable. Wash. Mut. Bank,
The Court's decision that the non-U.S. Plaintiffs may bring claims under California law comes with one caveat, however. As the Ninth Circuit has held, "[w]hen a law contains geographical limitations on its application, ... courts will not apply it to parties falling outside those limitations, even if the parties stipulate that the law should apply." Gravquick A/S v. Trimble Navigation Int'l Ltd.,
3. Extraterritoriality
Having determined that the parties agreed that California law would apply to all of the non-U.S. Plaintiffs' claims at issue (except the FAL claim), the Court need not address Apple's arguments as to whether the California laws apply extraterritorially. See Gravquick,
Courts start with a presumption that federal statutes "apply only within the territorial jurisdiction of the United States." Foley Bros. v. Filardo,
Here, this Court need not proceed beyond the first step because the text of the CFAA provides a clear indication of extraterritorial application. The subsections on which Plaintiffs rely-namely,
*449United States v. Gasperini,
Apple's counterarguments are unpersuasive. Apple points to the U.S. Supreme Court's observation that "even statutes that contain broad language in their definitions of 'commerce' that expressly refer to 'foreign commerce' do not apply abroad." Morrison,
4. International Comity and Forum Non Conveniens
Apple's last request with respect to the non-U.S. Plaintiffs asks the Court to exercise its discretion under either the doctrine of international comity or the doctrine of forum non conveniens to dismiss the claims by U.K. citizens under U.K. law. Mot. at 15-18. These two doctrines are closely intertwined. See Mujica v. AirScan Inc.,
Neither party appears to dispute that the existence of an adequate alternative forum is a prerequisite to the application of the international comity and forum non conveniens doctrines. Although the Ninth Circuit has not directly spoken to this issue in the context of the international comity doctrine, the Second Circuit has *450stated that "[w]hen a court dismisses on the ground of comity, it should normally consider whether an adequate forum exists in the objecting nation and whether the defendant sought to be sued in the United States forum is subject to or has consented to the assertion of jurisdiction against it in the foreign forum." Jota v. Texaco, Inc.,
Apple has the burden of demonstrating that an alternative forum is available and adequate. Carijano v. Occidental Petroleum Corp.,
Here, Apple has not shown that the U.K. Plaintiffs could bring their U.K. claims against Apple in the U.K. courts. In particular, Apple cannot bring itself to say that it is amenable to process in the United Kingdom. Instead, Apple states only that it does not "contest that it or one of its subsidiaries is subject to service of process in the U.K." Mot. at 17 (emphasis added). Clearly, this concession is insufficient to conclude that "the entire case and all parties can come within the jurisdiction of [the United Kingdom]." Gutierrez,
In sum, the Court GRANTS with leave to amend Apple's motion to dismiss the FAL claim of the non-U.S. Plaintiffs but otherwise finds that Apple has not raised any legitimate basis to wholesale dismiss any other claims brought by non-U.S. Plaintiffs. The Court next turns to the adequacy of Plaintiffs' allegations as to each of their claims.
B. Computer Intrusion Claims (Counts 1, 5-6)
Plaintiffs bring three causes of action based on allegations that Apple did not have authorization to reduce the performance of Plaintiffs' iPhones via the iOS updates. The Court first addresses a threshold issue about whether these claims are viable with respect to iPhone 5 and iPad devices. The Court then analyzes each of Plaintiffs' three computer-intrusion causes of action in turn.
1. iPhone 5 and iPad Devices
Plaintiffs' allegations as presently pled do not warrant computer-intrusion claims on behalf of Plaintiffs with iPhone 5, 5c, or 5s or iPad models. All three of *451Plaintiffs' computer-intrusion claims are premised upon Apple's having included the reduced-speed feature in the iOS updates sent to Plaintiffs' devices. See, e.g., CAC ¶¶ 474, 523, 534. While the Complaint provides that this feature operates on iPhone SE, 6, 6 Plus, 6s, 6s Plus, 7, and 7 Plus devices, id. ¶¶ 11, 20; id., Ex. 2, the Complaint is devoid of any allegations that the feature runs on any iPhone 5, 5c, or 5s or iPad models. Thus, Plaintiffs have failed to state a claim under Count 1 (violation of the Computer Fraud and Abuse Act), Count 5 (violation of the California Computer Data Access and Fraud Act), and Count 6 (trespass to chattels) with respect to iPhone 5, 5c, or 5s or iPad models. The Court therefore GRANTS with leave to amend Apple's motion to dismiss these claims for this limited set of devices. The Court's remaining discussion of Plaintiffs' computer-intrusion claims therefore excludes these devices.
2. Violation of the Computer Fraud and Abuse Act (Count 1)
The Computer Fraud and Abuse Act ("CFAA") is a federal criminal statute that also authorizes civil actions for any person who suffers damage or loss by reason of a violation of the statute.
(5)(A) knowingly causes the transmission of a program, information, code, or command, and as a result of such conduct, intentionally causes damage without authorization, to a protected computer; ... or
(C) intentionally accesses a protected computer without authorization, and as a result of such conduct, causes damage and loss.
No party contests that each Plaintiff's iPhone qualifies as a "protected computer," which the statute defines in relevant part as "an electronic ... or other high speed data processing device performing logical, arithmetic, or storage functions" that "is used in or affecting interstate or foreign commerce or communication."
The phrase "without authorization" modifies different actions in § 1030(a)(5)(A) and (C), and that distinction proves crucial to the analysis in this case. The Court begins with § 1030(a)(5)(A). There is no disagreement that Apple "knowingly cause[d] the transmission of a program, information, code, or command" by sending iOS updates. Rather, the dispute here centers on whether Apple, "as a result of [its knowing transmission], intentionally cause[d] damage without authorization" to Plaintiffs'
*452iPhones. Thus, the relevant question is whether Plaintiffs have adequately pled that Apple caused damage to their iPhones without permission and did so intentionally. The Court concludes that Plaintiffs' allegations are sufficient.
Under the CFAA, "damage" is defined as "any impairment to the integrity or availability of data, a program, a system, or information."
The Court reaches a different result with respect to § 1030(a)(5)(C). Unlike in § 1030(a)(5)(A), the phrase "without authorization" in § 1030(a)(5)(C) modifies "access." In the statute's words, liability attaches if Apple "intentionally accesses a protected computer without authorization."
Plaintiffs seek to remove themselves from these cases by arguing that their consent was not voluntary because "Apple concealed the true nature of the software at the time consent was requested." Opp. at 8. Although the Court does not necessarily foreclose a § 1030(a)(5)(C) claim based on ill-gotten consent, Plaintiffs do not sufficiently plead such a claim here. Plaintiffs do not, for example, allege that Apple posed as someone else or blatantly *453misdescribed the nature of the iOS updates in order to gain access to Plaintiffs' iPhones. Rather, Apple's message stated that the updates "include[d] bug fixes and improve[d] the security of [the] iPhone" or "include[d] bug fixes and improvements," and Plaintiffs allowed the update. CAC ¶¶ 360, 363, 399. As Plaintiffs' own authority acknowledges, "consent to an entry is often given legal effect even though the entrant has intentions that if known to the owner of the property would cause him ... to revoke his consent." Desnick v. Am. Broad. Cos.,
Finally, the Court rejects Apple's suggestion that the economic loss rule bars Plaintiffs' CFAA claim. Mot. at 34-35. The purpose of the economic loss rule is to "prevent[ ] the law of contract and the law of tort from dissolving one into the other." Robinson Helicopter Co. v. Dana Corp.,
Accordingly, the Court GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' CFAA claim under § 1030(a)(5)(C) but DENIES Apple's motion to dismiss Plaintiffs' CFAA claim under § 1030(a)(5)(A).
3. California Computer Data Access and Fraud Act (Count 5)
The California Computer Data Access and Fraud Act ("CDAFA") is the California state analogue to the federal CFAA. The CDAFA, codified in the California Penal Code, permits civil redress for any person who suffers damage or loss by reason of the commission of certain computer-related offenses.
(4) Knowingly accesses and without permission adds, alters, damages, deletes, or destroys any data, computer software, or computer programs which reside or exist internal or external to a computer, computer system, or computer network.
(5) Knowingly and without permission disrupts or causes the disruption of computer services or denies or causes the denial of computer services to an authorized user of a computer, computer system, or computer network.
For the CDAFA claim, Apple largely parrots its arguments with respect to the CFAA. In particular, Apple contends that "Plaintiffs have not alleged that Apple accessed their iPhones 'without permission,' as would be required to bring a claim under the CDAFA." Mot. at 32. The plain language of the statute belies Apple's reading. Section 502(c)(5) does not reference access at all. See People v. Childs,
As to the substance of the alleged § 502 violations, Plaintiffs' allegations are sufficient to state a plausible claim for violations of both § 502(c)(4) and § 502(c)(5). Under § 502(c)(4), Apple "knowingly access[ed]" a "computer system"-namely, Plaintiffs' iPhones-by providing and installing the iOS updates. CAC ¶¶ 523-24. Moreover, Plaintiffs plead that Apple did not inform Plaintiffs that installation of the iOS updates would slow the performance of their iPhones' processors and, therefore, that Plaintiffs did not consent to these changes. Id. ¶¶ 524-25. These allegations are adequate to conclude that Apple "without permission add[ed], alter[ed], damage[d], delete[d], or destroy[d] any data, computer software, or computer programs" on Plaintiffs' iPhones.
*455Apple's motion to dismiss Plaintiffs' CDAFA claim.
4. Trespass to Chattels (Count 6)
"The essence of the cause of action for trespass is an 'unauthorized entry' onto the land of another." Miller v. Nat'l Broad. Co.,
Plaintiffs plausibly plead facts establishing each of these elements. First, the Complaint contains sufficient allegations that Apple intentionally and without authorization interfered with Plaintiffs' possession of their iPhones. California case law has long recognized that consent to enter may be limited and that a trespass claim may lie when the scope of consent is exceeded. Civic W. Corp. v. Zila Indus., Inc.,
Second, the Complaint includes the requisite allegations that Apple's unauthorized use caused injury. The California Supreme Court has recognized that the California tort of trespass "does not encompass ... an electronic communication that neither damages the recipient computer system nor impairs its functioning." Hamidi,
Unlike Plaintiffs' CFAA and CDAFA claims, Plaintiffs' trespass to chattels claim is a tort claim that could be subject to the economic loss rule. Baggett v. Hewlett-Packard Co., No. 07-CV-0667-AG,
C. California Consumer Protection Claims (Counts 2-4)
Plaintiffs bring three causes of action which centrally focus on allegations that Apple made misrepresentations or concealed information about the characteristics of Plaintiffs' iPhones and the nature of the iOS updates. Because Plaintiffs' theory for these consumer-protection claims is not confined to the iOS updates, Apple cannot seek wholesale dismissal of the claims with respect to iPhone 5 and iPad devices. Contra Mot. at 35. The Court first addresses Plaintiffs' affirmative misrepresentation and fraudulent omissions theories for all three causes of action, then addresses the additional theories of liability under other prongs of the California Unfair Competition Law.
1. California Consumer Legal Remedies Act, Unfair Competition Law "Fraudulent" Prong, and False Advertising Law (Counts 2-4)
Plaintiffs assert misrepresentation and concealment theories under the California Consumer Legal Remedies Act ("CLRA"), the "fraudulent" prong of the California Unfair Competition Law ("UCL"), and the *457California False Advertising Law ("FAL"). See
a. Affirmative Misrepresentation
Plaintiffs' first theory of liability under the CLRA, the "fraudulent" prong of the UCL, and the FAL is that Apple affirmatively misrepresented the characteristics of Plaintiffs' devices. In spite of the length of Plaintiffs' complaint, their allegations in this regard are relatively skimpy and unfocused. The most specific allegation is that "Apple represented that its Devices were continually improving in speed and battery life and performed better than other devices on the market." CAC ¶ 488. Even if that allegation has a solid factual basis, see
In their opposition, Plaintiffs select a handful of specific statements made by Apple that are applicable to only some of the devices at issue. Opp. at 15-16. Those statements do not fare any better. For example, Apple's press releases for the iPhone 5s, iPhone 6, and iPhone 6 Plus allegedly touted faster performance and better battery life. See CAC ¶¶ 297 (advertising iPhone 5s as "faster and better than ever" with "great battery life."), 304 (advertising iPhone 6 and iPhone 6 Plus as having "blazing fast performance and power efficiency"). But, again, none of these statements makes a claim about specific or absolute characteristics of the products. Plaintiffs mainly focus their energy on certain statements made by Apple about the iPhone 5. In particular, Apple allegedly proclaimed in marketing materials that the iPhone 5 would "deliver[ ] even better battery life" with "performance and graphics up to twice as fast," and that, "even at [its] accelerated speed, iPhone 5 has more than twice enough battery power to last throughout the day-up to 8 hours of browsing on a cellular connection, up to 8 hours of talk time, and up to 10 hours of video playback time." CAC ¶¶ 291, 294 (alteration omitted). Even if these statements about the attributes of the iPhone 5 are actionable, In re Nexus 6P Prod. Liab. Litig.,
Plaintiffs' affirmative misrepresentation claim falters on another front: Plaintiffs do not plead exposure to Apple's allegedly misleading advertising statements. Federal Rule of Civil Procedure 9(b) requires that Plaintiffs "specify which statements the plaintiff actually saw and relied upon." In re Nexus 6P,
Nor can Plaintiffs escape this conclusion merely by pointing to the allegation that Apple conducted a "multiple year, consistent marketing plan." Id. ¶ 288. Even if Plaintiffs are able to amend the Complaint's allegations to show that Apple's advertising campaign is false or misleading, Plaintiffs are still obligated under Rule 9(b) to "plead separately and with particularity their individual exposure to the purportedly deceptive advertising campaign so as to put defendant on notice 'what' the alleged misrepresentations were." In re NJOY, Inc. Consumer Class Action Litig., No. 14-CV-00428-MMM,
Accordingly, the Court GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' claims under the CLRA, the "fraudulent" prong of the UCL, and the FAL to the extent those claims are predicated upon an affirmative misrepresentation theory.
b. Fraudulent Omissions
Plaintiffs' second theory of liability under the CLRA, the "fraudulent" prong of the UCL, and the FAL is that Apple fraudulently omitted information about Plaintiffs' devices. Omissions may give rise to liability under California consumer-protection laws. Hodsdon v. Mars, Inc.,
The state of the law on the duty to disclose under California law is in some disarray. A 2012 Ninth Circuit decision contained language suggesting that, in the absence of affirmative misrepresentations, a plaintiff must "allege that the design defect caused an unreasonable safety hazard."
*459Wilson,
This Court similarly need not offer any commentary on the vitality of Wilson and the safety-hazard requirement because Plaintiffs do not state a claim under any formulation of the duty to disclose that they advance. First and foremost, Plaintiffs plainly do not "allege that the design defect caused an unreasonable safety hazard." Wilson,
As the Ninth Circuit explained, one reading of the case law is that the "safety hazard pleading requirement is not necessary in all omission cases." Hodsdon,
*460Before delving into the heart of the inquiry, the Court notes upfront a slight shift in Plaintiffs' theory that affects the analysis. Before the JPML, Plaintiffs zeroed in on the iOS updates and Apple's alleged misrepresentations with regard to those updates. In re Apple Inc. Device Performance Litig.,
Nevertheless, without sufficient supporting factual allegations, the breadth of Plaintiffs' theory buckles under its own weight. Although the asserted defects affect the operation of the processors in Plaintiffs' devices and can cause those devices to shut down and remain dead until reconnected to power, CAC ¶¶ 2, 4, Plaintiffs do not satisfactorily plead the circumstances necessary to trigger Apple's duty to disclose. As discussed in more detail below, the Complaint does not provide a sufficient basis to conclude either that Apple's omission is material or that Apple concealed material facts unknown to Plaintiffs.
First, Plaintiffs do not adequately allege that Apple's omission was material. Hodsdon,
Although the Court is mindful that materiality is typically a question of fact that should not be decided at the motion to dismiss stage, In re Tobacco II Cases,
As Plaintiffs' own allegations demonstrate, consumers are fully aware of the facts regarding software capability and battery capacity. For years, consumers have had to replace batteries in their cell phones and other devices. Indeed, before the Apple iPhone came on the market, "cell phones without user-replaceable batteries were almost unheard of." Id. ¶ 378. Replacing batteries is a natural consequence of the fact that "[a] lithium-ion battery's capacity is degraded over time by discharge/recharge cycles, elevated temperatures, and aging." Id. ¶ 380; see also id. ¶ 392 ("[T]he impedance of lithium-ion batteries used in iPhones increases as the cells age, resulting in both a reduction in overall battery capacity and a reduction in the battery's ability to produce peak power output."). Plaintiffs even allege that "[i]t is well known to smartphone manufacturers, including Apple, that lithium-ion batteries degrade over time as the number of discharge/recharge cycles increases." Id. ¶ 381 (emphasis added). Similarly, Plaintiffs' Complaint explains the natural phenomenon that as "processing units become faster and more powerful," "they also require more power from the phone's battery." Id. ¶ 391. Eventually, a phone may "switch off" when "the battery ages and is unable to deliver the peak power demanded by the phone's processor." Id. ¶ 396.
In addition to consumers' baseline awareness of the inevitably of battery decay, Apple's representations made that point even more salient with respect to the devices at issue. For example, Plaintiffs acknowledge that Apple, like other smartphone manufacturers (including Samsung, LG, and Google), warranties its batteries for a limited amount of time. CAC ¶ 416. Specifically, Apple provides a "one-year warranty," which includes "service coverage for a defective battery." Id. In that warranty, Apple explicitly notes that the iPhone "battery is designed to retain up to 80% of its original capacity at 500 complete charge cycles." Id.; id. ¶ 416 n.60 (stating that the iPad "battery is designed to retain up to 80% of its original capacity at 1000 complete charge cycles"). These statements make clear that consumers cannot realistically expect their batteries to last for the lifetime of their devices (or even necessarily for more than a year). No Plaintiff alleges that the battery in his or her device did not live up to the standards actually communicated by Apple. Even if Apple's later statements about the iOS
*462updates designed to fix the battery-capacity issue omitted key information, Plaintiffs tie their claims and alleged harm to the point of sale, not to the point at which Apple slowed the processing speed of their devices. See, e.g., id. ¶¶ 30, 32, 34. Without a solid factual underpinning, Plaintiffs have not adequately alleged that the omitted information would have influenced a reasonable consumer's decision about whether to purchase the Apple device at the stated price.
Second, Plaintiffs do not adequately allege that Apple was Plaintiffs' fiduciary, had exclusive knowledge of material facts not reasonably accessible to Plaintiffs, concealed a material fact from Plaintiffs, or made partial representations while suppressing other material facts. Hodsdon,
For example, Plaintiffs have not adequately pled that Apple "ha[d] exclusive knowledge of material facts not known or reasonably accessible to the plaintiff" or "actively conceal[ed] a material fact from the plaintiff."
Nor have Plaintiffs adequately alleged that Apple "ma[de] partial representations that [we]re misleading because some other material fact ha[d] not been disclosed." Hodsdon,
In reality, Plaintiffs apparently seek to hold Apple liable for failing to provide a battery that lasted as long as Plaintiffs preferred. Plaintiffs' own allegations are to that effect. Plaintiffs readily concede "that iPhones worked as expected when new." Id. ¶ 397. In their view, the problem is that "[a] battery and processor must be designed such that even as the battery ages and loses performance, it will still be capable of meeting the processor's peak power demands for years to come." Id. ¶ 393; see also id. ¶ 394 ("Electronics manufacturers like Apple ... must design batteries to be more powerful than they need to be so that as they grow weaker, they still have the ability to meet the processor's peak power demands."). Nevertheless, California courts have been careful to "cabin[ ] the scope of the duty to disclose to avoid the unsavory result that manufacturers are on the hook for every product defect that occurs at any time, regardless of any time limits contained in their warranties." In re Nexus 6P,
Accordingly, the Court GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' claims under the CLRA, the "fraudulent" prong of the UCL, and the FAL to the extent those claims are predicated upon a fraudulent omissions theory.
2. California Unfair Competition Law "Unlawful" Prong (Count 3)
Plaintiffs predicate their claim under the "unlawful" prong of the UCL in part on Apple's alleged violation of the CDAFA. See CAC ¶ 508. The "unlawful" prong of the UCL covers "any business practice that violate[s] an independent statutory duty." Cel-Tech Commc'ns, Inc. v. L.A. Cellular Tel. Co.,
3. California Unfair Competition Law "Unfair" Prong (Count 3)
The "unfair" prong of the UCL creates a cause of action for a business practice that is unfair even if not proscribed by some other law. Korea Supply Co. v. Lockheed Martin Corp.,
*464Drum v. San Fernando Valley Bar Ass'n,
The Court may sidestep the bulk of this analysis because Apple challenges Plaintiffs' claim under the UCL's "unfair" prong on the ground that the "unlawful" and "fraudulent" prongs do not survive. Mot. at 31 n.22; Reply at 17 n.16. The Court has already ruled that Plaintiffs' claim under the UCL's "unlawful" prong may proceed as to all devices except iPhone 5 and iPad models. Thus, Apple's argument falls away on that front. The allegations that would apply to the iPhone 5 and iPad concern whether Apple concealed the asserted defects from consumers. See CAC ¶¶ 497, 499, 501. But Apple's "failure to disclose information it had no duty to disclose in the first place is not substantially injurious, immoral, or unethical" and has not been alleged to violate any manifest legislative policy. Hodsdon,
IV. CONCLUSION
For the reasons set forth above, Apple's motion to dismiss is GRANTED in part and DENIED in part. Specifically, the Court rules as follows:
• The Court GRANTS with leave to amend Apple's motion to dismiss the non-U.S. Plaintiffs' FAL claims.
• The Court DENIES Apple's motion to dismiss the U.K. Plaintiffs' claims under either the doctrine of international comity or forum non conveniens.
• The Court GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' CFAA claim with respect to iPhone 5 and iPad models. The Court also GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' CFAA claim to the extent that it is based on § 1030(a)(5)(C). The Court otherwise DENIES Apple's motion to dismiss Plaintiffs' CFAA claim.
• The Court GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' CLRA claim.
• The Court GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' UCL claim under the unlawful and unfair prongs with respect to iPhone 5 and iPad models, but otherwise DENIES Apple's motion to dismiss Plaintiffs' UCL claim under the unlawful and unfair prongs. The Court GRANTS Apple's motion to dismiss Plaintiffs' UCL claim under the fraudulent prong.
• The Court GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' FAL claim.
• The Court GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' CDAFA claim with respect to iPhone 5 and iPad models, but otherwise DENIES Apple's motion to dismiss Plaintiffs' CDAFA claim.
• The Court GRANTS with leave to amend Apple's motion to dismiss Plaintiffs' trespass to chattels claim *465with respect to iPhone 5 and iPad models, but otherwise DENIES Apple's motion to dismiss Plaintiffs' trespass to chattels claim.
Plaintiffs may file and serve an amended complaint consistent with this Order no later than November 1, 2018.
IT IS SO ORDERED.
The named Plaintiffs are identified in paragraphs 29 through 272 of the Consolidated Amended Complaint. Dkt. No. 145 ("CAC") ¶¶ 29-272.
The iPhone models at issue are iPhone 5, iPhone 5s, iPhone 5c, iPhone SE, iPhone 6, iPhone 6s, iPhone 6 Plus, iPhone 6s Plus, iPhone 7, and iPhone 7 Plus.
Similarly, Apple cites no authority for the proposition that Plaintiffs must include a named Plaintiff for every country that they seek to include in the class. Mot. at 15.
Similarly, Plaintiffs' cases regarding scope of consent are unhelpful to the "without authorization" inquiry. See Opp. at 24-25. Plaintiffs have not pled that Apple violated any of the CFAA sections that proscribe "exceed[ing] authorized access." See, e.g.,
Plaintiffs also do not elaborate on their allegation that Apple advertised the iPhone 6 as having a processor speed of 1.4 GHz, but "benchmark tests run by iPhone 6 users following the iOS 10.2.1 update revealed a processor speed of 600MHz."
Although Plaintiffs also plead that "Apple's batteries (as designed) degraded overly quickly ,"
