$25 Million Settlement in Apple Family Sharing Subscription Deception Class Action

When Apple rolled out its Family Sharing feature, it advertised the ability to share app subscriptions among family members. The trouble was that most third-party subscriptions could not actually be shared. Apple promoted Family Sharing alongside nearly every App Store subscription app, even when those apps did not support the feature, and buyers had no straightforward way to know the difference before purchasing.

Walter Peters filed suit in Los Angeles County Superior Court in June 2019, alleging that Apple's advertising was deceptive and induced consumers to buy subscriptions they would not have purchased had they understood the limitations. The proposed class covered U.S. residents who bought third-party App Store subscriptions between June 21, 2015, and January 30, 2019, while enrolled in a Family Sharing group with at least one other member.

Wilshire Law Firm, with attorney Thiago M. Coelho serving as class counsel, litigated the case through more than four years of proceedings. Apple denied wrongdoing throughout and agreed to resolve the litigation to avoid continued expense and uncertainty.

The parties reached a $25 million common fund settlement. After court-approved attorneys' fees of up to one-third of the fund, up to $2 million in litigation expenses, and incentive awards of up to $15,000 each for the class representatives, the balance was distributed to eligible class members, with individual payments capped at $30 per person. The court scheduled a final approval hearing for April 2, 2024, and the claim period closed March 1, 2024. Apple admitted no wrongdoing as part of the agreement.

The case illustrates how a gap between advertised and actual feature functionality can form the basis of a consumer protection class action, even against one of the largest technology companies in the world. Apple's defense was handled by Michelle Doolin of Cooley LLP.