Esther Leong v. Square Enix of America Holdings, Inc.

MEMORANDUM

Esther Leong and others (“Purchasers”) who purchased and used the online game Final Fantasy XI Online appeal the district court’s order dismissing their action against the game’s publishers, Square Enix of America Holdings, Inc. and Square Enix, Inc. (“Square Enix”). Reviewing the district court’s order de novo, see Ileto v. Glock Inc., 349 F.3d 1191, 1199 (9th Cir. 2003), we conclude that Purchasers’ claims are without merit.

Purchasers contend that they bought Final Fantasy XI Online without first being notified that failure to pay the monthly subscription fee for more than three consecutive months would result in the forfeiture of a user’s online game account and game characters. However, Purchasers do not sufficiently establish that they relied upon the nondisclosure of the forfeiture clause in making their initial purchasing decision. Thus, the alleged harm in purchasing the game and being unable to return it for a refund is not traceable to Square Enix’s conduct at the point of sale. Accordingly, the district court properly dismissed for lack of standing the Purchasers’ False Advertising Law, Consumer Legal Remedies Act, and Unfair Competition Law claims based…