I.B. v. Facebook, Inc.
United States District Court for the Northern District of California
905 F. Supp. 2d 989 (2012)
Facebook, Inc. (defendant) allows minors to register on its website and make purchases using the “Facebook Credits” payment system. Glynnis Bohannon let her minor son I.B. (coplaintiffs) use her credit card to buy $20 worth of Facebook Credits to use playing a video game. Facebook stored the credit card information without notice to Bohannon, and I.B. ran up several hundred dollars’ worth of in-game purchases thinking he was spending virtual currency. Another minor, J.W., took a debit card from his parents, Julie and Steven Wright (coplaintiffs), without permission and ran up over a $1000 bill using Facebook Credits. After Facebook refused to refund the money, the parents brought a class action on behalf of all Facebook users similarly charged because a minor used a credit card to make Facebook Credit purchases without permission. Facebook moved to dismiss for failure to state a cognizable claim, arguing that the minors could not disaffirm the transactions after accepting the benefits.
Rule of Law
Holding and Reasoning (Wilken, J.)
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