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Case 3:21-cv-05883-SK Document 1 Filed 07/30/21 Page 1 of 25
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`BURSOR & FISHER, P.A.
`L. Timothy Fisher (State Bar No. 191626)
`1990 North California Boulevard, Suite 940
`Walnut Creek, CA 94596
`Telephone: (925) 300-4455
`Facsimile: (925) 407-2700
`E-Mail: ltfisher@bursor.com
`
`
`
`BURSOR & FISHER, P.A.
`Philip L. Fraietta (pro hac vice forthcoming)
`Alec M. Leslie (pro hac vice forthcoming)
`888 Seventh Avenue
`New York, NY 10019
`Telephone: (646) 837-7150
`Facsimile: (212) 989-9163
`E-Mail: pfraietta@bursor.com
`
` aleslie@bursor.com
`
`Attorneys for Plaintiff
`
`
`
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`
`
`JARRETT REEVES, individually and on behalf
`of all others similarly situated,
`
`
`
`
`NIANTIC, INC.,
`
`
`
`v.
`
`Plaintiff,
`
` Defendant.
`
`Case No.
`
`CLASS ACTION COMPLAINT
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`JURY TRIAL DEMANDED
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`CLASS ACTION COMPLAINT
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`Case 3:21-cv-05883-SK Document 1 Filed 07/30/21 Page 2 of 25
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`Plaintiff Jarrett Reeves (hereinafter “Plaintiff”), brings this action on behalf of himself and
`all others similarly situated against Defendant Niantic, Inc. (hereinafter “Defendant” or “Niantic”).
`Plaintiff makes the following allegations pursuant to the investigation of his counsel and based
`upon information and belief, except as to the allegations specifically pertaining to himself, which
`are based on personal knowledge.
`
`NATURE OF THE CASE
`1.
`This is a putative class action brought by Plaintiff and all others similarly situated
`due to deceptive and misleading trade practices by Defendant in marketing and selling in-game
`items and in-game currency for its popular online video game, Pokémon Go (hereinafter,
`“Pokemon”). These items and in-game currency are frequently purchased by minors who were
`unable to exercise their unrestricted rights under state laws to rescind contracts into which they
`entered.
`2.
`Niantic is a provider of socially connected video games on the internet. Niantic
`allows for free downloads of video game applications including Pokemon, i.e. video game software
`that users download on different computing device platforms, including iOS and Android. Users
`running Pokemon on their devices connect to Niantic’s software servers and other users connected
`through the internet together to create a simulation of the real-world in the digital realm, i.e.,
`cyberworld. Niantic provides a video game service, i.e., an entertainment or recreational service
`through the internet.
`3.
`Plaintiff brings this action for declaratory, equitable and monetary relief under the
`Declaratory Judgment Act, California’s contract laws, Consumers Legal Remedies Act Cal. Civ.
`Code § 1750, et seq., Breach of Good Faith and Fair Dealing, Negligent Misrepresentation,
`Business and Professions Code Sections 17200 et seq., and/or for Unjust Enrichment.
`4.
`This is a class action, filed pursuant to Rule 23 of the Federal Rules of Civil
`Procedure on behalf of a class of all persons in the United States who, while under the age of 18,
`had a Pokemon account that they used to play the game on any device, in any mode, and exchanged
`in-game virtual currency for any in-game benefit, or purchased virtual currency or any other in-
`game benefit for use within Pokemon.
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`CLASS ACTION COMPLAINT
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`Case 3:21-cv-05883-SK Document 1 Filed 07/30/21 Page 3 of 25
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`JURISDICTION AND VENUE
`5.
`This Court has jurisdiction over the subject matter of this action pursuant to 28
`U.S.C. § 1332(d)(2), because the matter in controversy exceeds $5,000,000, exclusive of interest
`and costs, and is a class action in which at least one member of the Class is a citizen of a State
`different from the Defendant. The number of members of the proposed Class in aggregate exceeds
`100 accountholders. 28 U.S.C. § 1332(d)(5)(B).
`6.
`This Court has personal jurisdiction over the Defendant because Defendant
`maintains its principal place of business in this District.
`7.
`Venue is proper in this district pursuant to 28 U.S.C. § 1391 because a substantial
`part of the events or omissions giving rise to the claims asserted herein occurred in this District and
`because Defendant maintains its principal place of business in this District.
`
`PARTIES
`8.
`The foregoing allegations are incorporated by reference and realleged herein.
`9.
`Plaintiff Jarrett Reeves is a natural person and resident of Texas.
`10.
`Defendant Niantic, Inc., is a Delaware corporation with its headquarters and
`principal place of business located in San Francisco, California, and has regularly engaged in
`business in this district. Defendant directs the marketing and development of its products and
`services, including the subject Pokemon video game, and the deceptive and unfair conduct
`stemming therefrom, from its headquarters located in San Francisco, California.
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`GENERAL BACKGROUND
`
`A.
`Pokemon
`11.
`Pokemon is an online augmented reality video game in which players use mobile
`devices with GPS to locate, capture, train, and battle virtual creatures, called Pokémon, which
`appear as if they are in the player’s real-world location.
`12.
`Pokemon, during the relevant time period, was available on iOS and Android, and
`has become one of the most played games on the planet, with more than 147 million monthly
`active users. Regardless of the whether a player is on an iOS or Android platform, a player’s
`experience and Defendant’s representations are the same.
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`13.
`Pokemon breaks away from the traditional pay-for-game model, wherein a
`consumer pays a one-time fee for a game and gains access to all of its features, and instead offers
`the game for free with the hopes that players purchase various in-game items. This is referred to as
`the free-to-play or “freemium” model.
`14.
`The free-to-play model has broadened Pokemon’s customer base by allowing
`players, including minors, to start playing the game without requiring payment or parental consent.
`15.
`However, while Pokemon can be played without making in-game purchases, the
`social nature of the game exacerbates the need for players, especially impressionable minors, to
`make in-game purchases. Players are left with little choice but to make in-game purchases in order
`to meaningfully enjoy the game and avoid lack of progression.
`
`1.
`PokéCoins
`16.
`Niantic derives most of its Pokemon-related revenue through the sale of
`“PokéCoins” or “PokeCoins,” Pokemon’s in-game currency. PokeCoins are an in-game currency
`created by Defendant solely for the Pokemon game, and are used by players to purchase
`equipment, tools, clothing, characters, “loot boxes,” items granting additional gameplay
`opportunities, and expanded virtual storage for items within the Pokemon virtual world.
`17.
`Critically, PokeCoins purchases are non-refundable, regardless of whether the
`purchaser is a minor, or whether the minor’s parent or guardian has for any reason changed their
`mind about their purchase.
`18. While users can earn PokeCoins in-game instead of purchasing them for money,
`earning PokeCoins in the game is a difficult, time consuming, and an inconsistent process due to
`the amount of playtime required and the randomness at which PokeCoins are offered as rewards.
`Further, Defendant artificially caps the total amount of PokeCoins that a player can earn in one day
`at 50 PokeCoins. By making PokeCoins inordinately difficult and time consuming to earn,
`Defendant creates a “paywall” to induce players to purchase PokeCoins instead of earning them.
`19.
`The smallest amount of PokeCoins a player can currently purchase is 100
`PokeCoins for $0.99. However, Defendant encourages players to purchase larger quantities of
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`PokeCoins by providing discounts on larger amounts. For example, as shown below, a player
`could purchase a whopping 14,500 PokeCoins for $99.99.
`
`20.
`Although Defendant could have very easily based in-game transactions on actual
`currency, requiring the conversion of money to PokeCoins permitted Defendant to particularly
`maximize its revenue in several ways. First, the PokeCoins system distances the player
`psychologically from the amount of real-world money he or she has spent within the game. The
`PokeCoins system serves to psychologically distance players from the financial implications of
`their in-game purchases by disconnecting the expenditure of real money from the products the
`players purchase with their digital PokeCoins. This is especially the case for minors who may not
`have a firm understanding of the correlation between the amount of real-world money and
`PokeCoins spent. If Pokemon followed a traditional pay-for-game model, most players would
`think that spending hundreds of dollars, let alone thousands of dollars, is an exorbitant price to pay
`to play a single video game.
`21.
`Defendant implements further pricing control by selling PokeCoins in currency
`packs and setting the price of in-game loot at odd amounts. The amount of PokeCoins in a
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`currency pack almost never corresponds evenly to the price of loot. Using this system, Defendant
`perpetuates a cycle of Pokemon players constantly needing PokeCoins, never having enough, and
`purchasing more. This cycle is further perpetuated by Defendant offering “limited time sales” and
`time-sensitive in-game “events” creating a sense of urgency to purchase.
`22.
`Defendant also encourages player spending by varying the exchange rate at which
`PokeCoins are purchased in different transaction sizes. While 100 PokeCoins can currently be
`purchased for $0.99 – an exchange rate of approximately 101 PokeCoins per dollar, a player who
`purchases 14,500 PokeCoins in a single transaction is charged $99.99, an exchange rate of
`approximately 145 PokeCoins per dollar.
`23.
`Finally, Defendant induces players into making more purchases by making the
`purchase process incredibly easy. Once a player enters and saves a payment method, that player
`can purchase PokeCoins at any time almost instantly. In practice, this means minors whose parents
`enter and save their credit cards into a Pokemon account can use their parents’ credit cards to make
`an endless number of purchases. The ease of purchase combined with the constant cycle of
`introducing new items and time-sensitive “events” for results in more purchases.
`
`2.
`Digital Content
`24.
`Pokemon’s digital content, broadly speaking, includes two types of content: (i)
`related to items; and (ii) related to play such as “raids,” “battles,” and “events.” Both are for a
`user's enjoyment when playing the video game.
`25.
`Pokemon’s digital content items include, for example, “boxes,” “incubators” for
`“eggs,” “poffins,” “poke balls,” “incense,” “rocket radars,” “star pieces,” “potions,” “lucky eggs,”
`“revives,” “lures,” and “upgrades” to storage. Players can also change the appearance of their
`virtual avatar with PokeCoin purchases, including purchasing poses, hats, masks, glasses, tops,
`bags, gloves, bottoms, socks, and footwear.
`//
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`26.
`Defendant provides these digital content items as part of an entertainment service
`for recreation purposes.
`27.
`Pokemon’s digital content related to play “passes” for “raid” events, and “battle
`passes.” “Raids” are limited-time “battles” where players team up to defeat a rare “boss” Pokémon
`creature. If the players win, they are given the opportunity to “capture” the “boss” Pokémon. If
`they are successful, it is added to their collection. Neither the win nor the capture are guaranteed.
`28.
`Defendant regularly does “limited time” raid events, where players are given until a
`certain date to catch particularly rare “raid bosses.” After the event ends, that specific raid boss is
`no longer available for players to even attempt to capture, further enticing purchases of additional
`opportunities and items in order to capture these creatures before time runs out.
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`29.
`Pokemon’s digital content is updated frequently, with new Pokémon creatures and
`events consistently added and advertised. Thus, after purchasing digital content items, players are
`tempted and induced to make more purchases within a short time frame when newer content is
`made available, which is regularly presented on a limited-time basis. Further, the constant turnover
`of events makes prior purchases feel stale. Players are not able to enjoy purchases already made to
`the fullest extent because of Defendant’s frequency of pushing out new events. Players are also
`tempted and induced to make immediate purchases because event-based content is only made
`available for purchase for a limited time.
`
`3.
`Pokemon Loot Boxes
`30.
`In addition to obfuscating the amount of money that players spend in-game,
`Defendant previously maximized the amount of money that players spent in-game by incorporating
`so-called “loot boxes” into its game design. Defined generally, a loot box is an in-game virtual
`item that contains character costumes, tools, emotes and other specific in-game items that the
`player can use to progress through the game.
`31.
`Defendant’s “eggs” and the related “incubators” fit this definition. “Eggs” are free
`to acquire but the virtual creatures within them need to be “hatched,” or unlocked, by walking
`specific distances in the real world. A player can hatch one egg at a time using the game’s
`“infinite” incubator, or buy limited-use “incubators” to stack up to eight more incubators at once.
`Finally, the top tier of paid “incubator” additionally offers the ability to hatch Pokémon at a faster
`rate.
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`32.
`The creatures received from hatching eggs are randomized from the perspective of
`the player. Critically, Defendant obscured the odds of receiving the rarest Pokémon in its Eggs,
`luring players into making more and more purchases of incubators on the off-chance that the next
`egg will contain the rare Pokémon they are seeking. However, had players known the actual odds
`of receiving the Pokémon they desired, they would not have purchased the loot boxes.
`33.
`This system was created to capitalize on and encourage addictive behaviors, akin to
`gambling. Minors are especially susceptible to these addiction-enhancing elements of game
`design. The experience of acquiring surprise rewards and the associated excitement of uncovering
`unexpected in-game items holds a strong appeal for minors and reinforces their desire to keep
`playing and keep getting rewards.
`34.
`Defendant still takes in large amounts of money from in-game purchases and
`utilizes ever changing “events” that introduce new Pokémon for players to pursue.
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`35.
`Furthermore, Pokemon still fails to provide an unrestricted right to seek refunds of
`any in-game purchases made by minors.
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`4.
`Pokemon In-App Purchases
`36.
`Pokemon can be played on different platforms and computing devices including iOS
`and Android. Minors download and install Pokemon and play on different platforms.
`37. While on its face it appears that Niantic requires that its terms of use be accepted by
`legal adults 18 years and older, Niantic targets minors. An agreement that explicitly requires
`acceptance by an adult cannot apply to a minor, and minors have a legal right to disaffirm contracts
`into which they enter. In fact, Niantic allows minors to make purchases even after informing
`Niantic that they are below the age of 18. When setting up their account, the first action players
`take is to provide Niantic with their date of birth:
`
`38. Minors make in-App purchases, including, for example, purchasing PokeCoins to
`use for in game items and gameplay. Minors wanting to refund their in-App purchases have no
`means within the game to request a refund. Niantic’s terms of use explicitly states “that all sales
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`by us to you of Virtual Money and Virtual Goods are final and that we will not permit exchanges
`or refunds for any unused Virtual Money or Virtual Goods once the transaction has been made.”1
`39. Minors make PokeCoin purchases without understanding the amounts of actual
`money involved to-date, that day, that week or that month. Minors often make PokeCoins
`purchases through their parents’ credit cards and debit cards that were already stored on various
`gaming platforms. Parents and guardians who store credit card information in a gaming platform
`likely do not realize that those to whom they give access to the platform can use that credit card to
`make in-game purchases.
`40.
`Separate from purchases made directly from Niantic, Plaintiff and minor Class
`members have made purchases from third-party marketplaces like the Apple Store. PokeCoins gift
`cards are available for use on those marketplaces and minors who receive these gift cards for
`birthdays, etc., have been able to use their own money to purchase PokeCoins (as opposed to
`parental money charged on credit cards). Minor Class members who wanted to cancel those own-
`money purchases were not allowed to do so under Niantic’s or the third-party marketplaces’ non-
`refundable policies.
`41.
`Prior to making the in-App purchases, minors are generally not aware of the
`nonrefundable policy for in-app purchases. Plaintiff and minor Class members are not buyers who
`would look for refund policy options at the time of purchase.
`42.
`In many instances, a parent or guardian may not review his or her credit cards, debit
`cards, and bank account information until months after the purchases occurred and thus would not
`know of the amounts spent at the time of purchase.
`43.
`After making those purchases within the Pokemon ecosystem, minors who attempt
`to request refunds may find that none of the purchases could be refunded. Without hiring counsel,
`minor Class members and their guardians are not aware of a minor’s right to disaffirm and get
`refunds on any and all in-App purchases without any restrictions.
`
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`1 https://nianticlabs.com/terms/en/
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`5.
`
`Niantic Induces Minors to Make Frequent In-App
`Purchases
`44.
`Niantic induces minors to make purchases by its operation of PokeCoins currency
`within the Pokemon ecosystem.
`45.
`Niantic induces minors to make in-App purchases by promoting deals and price-cuts
`on different purchases that appear very enticing.
`46.
`Niantic induces minors by concealing the terms of the in-App purchase at the time
`of purchase by not displaying non-refundability or by displaying non-refundability in very small
`font.
`
`47.
`Niantic induces in-App purchases by allowing one-click and easy to make in-App
`purchases within Pokemon.
`48.
`Niantic does not give minors enough information to make reasonable and prudent
`choices with in-App purchases.
`49.
`Niantic further induces frequent in-App purchases by constantly pushing newer
`content and time-sensitive events. Purchases already made become stale quickly. Players are
`induced to make frequent in-App purchases to keep up with their peers on whatever is the current
`fad or challenge.
`50.
`By operation and policies of the Pokemon ecosystem, Niantic is benefiting by luring
`minors into making in-App purchases that test the tolerance levels of parents. In many instances,
`parents ignore these expenses as one-time expenses at the early stages of using Pokemon. By
`disallowing refunds in the Pokemon ecosystem, while also making one-click purchases in the same
`ecosystem easy, Niantic is running an unfair system.
`
`6.
`
`Niantic Misleads or Misrepresents Information Related to
`In-App Purchases
`51.
`Niantic misleads or misrepresents the applicable law for transactions including in-
`App purchases with minors. Niantic knows that in the state California, and in most states
`nationwide, the law allows minors to disaffirm contracts. Niantic also knows that a minor can
`disaffirm contracts without any restrictions; the law permits a minor to do so. Yet, Niantic operates
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`a non-refund policy that misleads, misrepresents, and does not acknowledge a minor’s right to get a
`refund.
`52.
`Before hiring counsel in this action, Plaintiff was not aware of a minor's right to
`disaffirm and request a refund. On information and belief, Niantic’s customer support routinely
`sends emails to players, including minors, stating that in-App purchases are non-refundable.
`53.
`During the early use of Pokemon, a parent may not be monitoring his or her own
`credit card, debit card or bank account information closely. In such instances, the early purchases
`go undetected for a long period of time.
`54.
`Niantic misleads or misrepresents actual amounts spent on an in-App purchase by
`using intermediary PokeCoins amounts that require difficult calculations to figure out the accurate
`amounts spent.
`55.
`Niantic conceals and misleads minors by not displaying the terms of the in-App
`purchase at the time of purchase including non-refundability or by displaying non-refundability in
`very small font at the side. By not including any visibly cautionary language at the time of
`promoting in-App purchases, Niantic is misleading the minors.
`56.
`Niantic misleads or misrepresents the current value of a digital content item by not
`disclosing when newer related content will be published. Minors have no way of knowing, for
`example, if a purchase they are making today will become stale within a day or two, or a week
`when newer content is published.
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`PLAINTIFF’S EXPERIENCE
`Plaintiff was an avid player of Defendant’s Pokemon video game during the relevant
`
`57.
`time period.
`58.
`Throughout his time playing Defendant’s video games, Plaintiff has relied on
`Defendant's advertising of time-sensitive “events.”
`59.
`Throughout his time playing Defendant's video games, Plaintiff has also relied on
`Defendant’s representations regarding the value of any in-game items that they received and were
`otherwise unaware of what any particular in-game item costs in real-world currency.
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`CLASS ACTION COMPLAINT
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`Case 3:21-cv-05883-SK Document 1 Filed 07/30/21 Page 14 of 25
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`60.
`Despite spending the equivalent of at least $252.66 in real-world currency on
`Defendant’s loot boxes and in-game items while under the age of 18, Plaintiff almost never
`received any items that had real value. Plaintiff often failed to obtain the specific Pokémon
`creatures he was seeking despite spending money.
`61.
`Had Plaintiff known the extremely low chances of catching or receiving any of the
`rare Pokémon featured and advertised by Defendant, he would not have made any in-game
`purchases.
`62.
`Nor would Plaintiff have made the number of in-game purchases that he did had
`Defendant not required them to use its virtual currency.
`63. While Pokemon requires that its Terms of Use be accepted by a legal adult over the
`age of 18 to play the game, Defendant failed to implement sufficient mechanisms for parental
`consent controls and does not put any procedure in place for minors to consent to the Terms of Use
`through their adult guardian prior to downloading and playing Pokemon. In fact, despite the terms
`of use, Defendant encourages and permits minors to make purchases even after minors inform
`Defendant about their ages, which the game requires them to do prior to playing.
`64.
`Plaintiff does not recollect seeing, reading, or agreeing to Defendant’s Terms of Use
`prior to playing Pokemon, and his guardians also did not see, read, or agree to the terms.
`65.
`As a result, Plaintiff made several in-game purchases that were labeled non-
`refundable using their own and their guardians’ funds.
`66.
`Had Defendant provided proper parental control and age verification features,
`Plaintiff would not have been able to make any of the purchases that he did. And had Defendant
`permitted Plaintiff to disaffirm his contracted purchases, he would have done so.
`67.
`Plaintiff played Pokemon during the relevant time period. Plaintiff used an iPhone
`to play Pokemon. He does not recollect seeing, reading or agreeing to the EULA or any amended
`EULAs.
`68.
`Plaintiff has made several in-App purchases, including for example, Event Bonuses
`and New Trainer Boxes. He wanted to disaffirm the in-App purchases related to these purchases
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`CLASS ACTION COMPLAINT
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`Case 3:21-cv-05883-SK Document 1 Filed 07/30/21 Page 15 of 25
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`and request a refund but was not allowed to do so within the Pokemon ecosystem. Within the
`Pokemon ecosystem, these purchases are non-refundable.
`69.
`Plaintiff has made PokeCoins purchases without understanding the amounts
`involved in actual money to-date, that day, that week or that month. Plaintiff has made PokeCoins
`purchases through his parents’ credit cards and debit cards that were available from his gaming
`platforms. At other times Plaintiff cards associated with his own bank account.
`70.
`Plaintiff has used his own money through gift cards received on social occasions
`including birthdays. He has used gift cards on more than one occasion, including gift cards from
`Niantic payment vendors, for example, the Apple App Store. Subsequent to the purchases, Plaintiff
`wanted to cancel those purchases but was not allowed to do so under Niantic’s non-refundable
`policy.
`
`71.
`Prior to making the in-App purchases, Plaintiff was not aware of the non-refundable
`policy. Plaintiff and Class members are not buyers who would look for refund policy options at the
`time of purchase.
`72.
`Plaintiff’s parents did not receive any notifications of the in-App purchases from
`Niantic.
`73.
`Before hiring counsel in this action, neither Plaintiff nor his parents were aware of a
`minor's right to disaffirm and get refunds on any and all in-App purchases without any restrictions.
`74.
`Plaintiff relied on Niantic's misrepresentations regarding non-refundability for
`purchases.
`75.
`Plaintiff has not been able to earn sufficient PokeCoins within the game and all of
`his in-App purchases were purchases made through credit cards or debit cards from the gaming
`platform or gift cards.
`76.
`Niantic induces minors to make purchases by its operation of PokeCoins currency
`within the Pokemon ecosystem as outlined above.
`77.
`Plaintiff has made purchases after viewing promotional events. He has made one-
`click purchases.
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`CLASS ACTION COMPLAINT
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`Case 3:21-cv-05883-SK Document 1 Filed 07/30/21 Page 16 of 25
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`78.
`Plaintiff did not have information on his own purchase history or summary of
`amounts already spent with in-App purchases.
`79.
`Plaintiff has felt dissatisfied with items purchased that became stale within a week
`or less. Plaintiff has also felt dissatisfied with purchases that he made when he was attempting to
`obtain rare Pokémon promoted in a limited-time events, but was unable to do so.
`80.
`Plaintiff has played Pokemon for long periods of time, which has adversely affected
`his sleep at night and overall health. He has also played Pokemon for extended times outside his
`regular playing window further affecting his sleep and health adversely. Plaintiff has made in-App
`purchases when he was tired after playing for long periods of time.
`81.
`In many instances, during the use of Pokemon, Plaintiff’s parents reviewed his
`credit cards, debit cards and bank account information months after the purchases occurred.
`
`CLASS ALLEGATIONS
`82.
`Plaintiff seeks to represent a class defined as:
`The Class:
`All persons in the United States who, at any time between July 6, 2016 and the
`present, had a Pokémon account that they used to play either game on any device
`and in any mode and, while under the age of 18, (a) exchanged in-game virtual
`currency for any in-game benefit, or (b) made a purchase of virtual currency or
`other in-game benefit for use within Pokemon.
`83.
`Specifically excluded from the Class are Defendant, Defendant’s officers, directors,
`agents, trustees, parents, children, corporations, trusts, representatives, employees, principals,
`servants, partners, joint ventures, or entities controlled by Defendant, and their heirs, successors,
`assigns, or other persons or entities related to or affiliated with Defendant and/or Defendant’s
`officers and/or directors, the judge assigned to this action, and any member of the judge’s
`immediate family.
`84.
`Subject to additional information obtained through further investigation and
`discovery, the foregoing definitions of the Class may be expanded or narrowed by amendment or
`amended complaint.
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`CLASS ACTION COMPLAINT
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`Case 3:21-cv-05883-SK Document 1 Filed 07/30/21 Page 17 of 25
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`Numerosity. On information and belief, tens of thousands of consumers fall into
`85.
`the definitions of the Class. Members of the Class can be identified through Defendant’s records,
`discovery, and other third-party sources.
`Commonality and Predominance. Common questions of law and fact exist as to
`86.
`all members of the Class and predominate over any questions affecting only individual members of
`the Class. These common legal and factual questions include, but are not limited to, the following:
`a. Whether Defendant’s practice of not disclosing the content of loot boxes was
`deceptive to a reasonable consumer;
`b. Whether Defendant's practice of requiring purchase of its virtual currencies to
`advance in its games constituted a deceptive practice;
`c. Whether Defendant's failure to provide a method for minors or their guardians to
`disaffirm any purchases violated their consumer rights;
`d. Whether Defendant’s pricing schemes for its virtual currencies constituted a
`deceptive practice;
`e. Whether Plaintiff and the other Class members were damaged by Defendant’s
`conduct; and
`f. Whether Plaintiff and the other Class members are entitled to restitution or other
`relief.
`Typicality. Plaintiff’s claims are typical of the claims of the other members of the
`87.
`Class in that, among other things, all Class members were

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