New Class-Action Lawsuit Against Microsoft Alleges "Microsoft Point" System Fraudulent

New Class-Action Lawsuit Against Microsoft Alleges "Microsoft Point" System Fraudulent

Microsoft has always taken a certain amount of flak over the fact that its XBox Live Marketplace (as well as the Zune and Games for Windows - Live stores) all use Microsoft Points as currency, but the recent actions of one unhappy customer have given the situation a new twist. Last week, Pennsylvania attorney Samuel Lassoff filed a class action lawsuit against Microsoft, claiming that the company's customers had been "exposed to point fraud, following fraud, breach of contract, negligence, unjust enrichment, and unfair business practices on the part of the defendant Microsoft Corporation."

Underneath the legal verbiage, Lassoff's complaint is that the XBox Live store improperly charged Microsoft Points for partial downloads that were unable to complete. According to the complaint, this rises to the level of illegal fraud because Microsoft collected "revenue for digital goods and services which were not provided." Lasshoff was forced to file the suit after calling XBox Live Customer Support and spending "several hours" contacting his credit card company.



The filing describes these activities as "extremely burdensome" and states that they required "15 attorney hours over several days." Unfortunately, Lassoff neglected to provide the definition of the extremely suspect phrase "attorney hour," which we suggest most likely converts into just 1-2 of our normal Earth hours. The plaintiff is no stranger to frivolous lawsuits, having previously sued Google and Yahoo over click fraud, as well as an Atlantic City casino in 2005.

The lawsuit is unlikely to achieve its goal given that Lassoff probably spent all of $5-$20 dollars, but it could provide additional impetus for Microsoft to scrap the Microsoft Point system in favor of direct currency charges. While it's not a factor in the current complaint, customers have roundly disliked the fact that it's impossible to purchase a specific number of points that would correspond to the number actually needed to buy a particular item. Instead, gamers must buy points in pre-set blocks, the remainder of which are spent at a later date. Depending on how often one buys from the store, these unspent points effectively function as a free loan to Microsoft.

Microsoft has yet to file a formal response to the case, but will presumably do so after its lawyers manage to stop snickering.
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yeah pay for something you will use someday but for now we got ya money (should be a kanye west song right) we want prenups we want prenups!!

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Microsoft your going down! in the game of monopoly somebody always goes bankrupt.

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"The filing describes these activities as "extremely burdensome" and states that they required "15 attorney hours over several days." Unfortunately, Lassoff neglected to provide the definition of the extremely suspect phrase "attorney hour," which we suggest most likely converts into just 1-2 of our normal Earth hours. The plaintiff is no stranger to frivolous lawsuits, having previously sued Google and Yahoo over click fraud, as well as an Atlantic City casino in 2005."

 

Lol, I have a feeling this will get thrown out, and Lassoff will get a full refund and nothing more. This guy sounds like a bit of a quack.

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I have had no issues with the system. Plus its easier for gifts to give points cards than money especially if you are under age and have no bank account or credit card. Microsoft has wronged us in many ways but how they handle the xbox has been fair for the most part(except for the requirement of payment for most DLC and forcing companies to charge such prices for DLC when they feel its a gift to their loyal fans).

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and the whole charging for xbox live while everyone else's service is free... etc. etc.

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This is a BS issue coming from M$ but I don't think there going down anytime soon. Lets not forget they pretty much have the whole world at their finger tips with Windows and office.

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All Microsoft have to do is to make it's currency into "Real" money. I hope everyone will do this. I like that Sony has gotten that right from the beginning. Wii also should do this to.

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Maybe they're betting that people would more freely spend points than money. It's like in casinos when you're playing slots, you get slips of paper instead of dollar bills when you move from one machine to another. You lose perspective of how much you're losing/spending.

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Nice, finally doing something about it ;P Always figured MS was crooked. First they get away with 1/2 of their consoles sold failing. I'm glad I'm not an xbox owner :P Though consoles are fun. PC gaming has always been where it's at :P Hope whoever is suing them gets all the free money they want off that case.

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Yeah memphis I have always been a PC gamer as well (except when I was a kid (atari/nintendo/sega). As for this law suit the person doing it sounds like a crock pot to me. He just sues anyone he can to try and grab a mother load payout. The problem with that is this is the reason in many cases why our society is as expensive as it is to live in, and in a large way something which holds back technology on many front's. This is because instead of spending  money on R/D they have to spend the money on insurance and lawyers.  It also affects everything medical care, and insurance car's and insurance, business in general and insurance.

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Here's why I hate the downloadable content on the 360.

a) I bought five or six downloadable games for my son. I bought them from my account, since you can play the games from any account on the console... and I don't want to save my credit card details for reuse in the account of a 6-year old.

b) System failed due to MS's RROD design flaw. This was before they acknowledged it, so I got to pay full price to get them to fix it.

c) They send me a completely different refurbished 360.

d) Now, the games I downloaded are only available to my account - because it only authorizes them for the account that buys them and all other accounts on that same XBox 360.

And, of course, they sell the points and games in different hot-dog-style 8 to a pack/10 to a pack quantities so that they always have a few dollars extra of your money for which you get nothing.

Poorly designed system, poorly designed marketplace.

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im more of a pc gamer too, i got a xbox 360 but haven't touched it lately unless a cool game comes out for it .

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Wow 3vi1 that system just sounds screwed up. I don't play as I mentioned game machines at all and have not for quite some time. This makes that even less likely.

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This reminds me that I still have yet to see any points that I received from the rewards system that they are currently testing.  I have no complaint about extra points because they have a points package for several different "situations."

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3vi1:

Here's why I hate the downloadable content on the 360.

a) I bought five or six downloadable games for my son. I bought them from my account, since you can play the games from any account on the console... and I don't want to save my credit card details for reuse in the account of a 6-year old.

b) System failed due to MS's RROD design flaw. This was before they acknowledged it, so I got to pay full price to get them to fix it.

c) They send me a completely different refurbished 360.

d) Now, the games I downloaded are only available to my account - because it only authorizes them for the account that buys them and all other accounts on that same XBox 360.

And, of course, they sell the points and games in different hot-dog-style 8 to a pack/10 to a pack quantities so that they always have a few dollars extra of your money for which you get nothing.

Poorly designed system, poorly designed marketplace.

 

Did you ever get reimbursed for the RROD failure?

I don't understand why you have to pay for 360 when PS3 and the Wii both have free online play. Even more surprising is that people have continued to pay for it. And almost every game out on the Xbox is available (in better graphics) on the PS3...not to mention you get a Blu-Ray player with the PS3 as well.

The biggest reason the Xbox is a hit is because it beat the other consoles to the market. Despite the RROD's and hardware's shortcomings, the early release date gave them a substantial head-start on the competition.

Like some people here, I don't own a console either, but I'd most likely purchase the PS3 if I had to.

 

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I have an Xbox 360, mostly because it can play my old xbox games and to play next gen games. I thought about buying a ps3 when the price dropped but they took out ps2 game playing. I like playing single player games on my console, like mass effect, bioshock, fallout 3, etc.

Only on games that really need the power of a PC or are a MMO or multiplayer that my friends will play do I buy the PC game.

That being said, I hate point systems, it is just like 3vi1 said, hot dog / hot dog bun scheme where you always have leftover points. I would also like Xbox Live to be free, but I don't use it all that much (I used it a lot when Civ:Revolution came out, awesome game).

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Yeah I personally am jonesing for a game, but theirs nothing new really that I like.

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lol hot dog / hot dog bun scheme Big Smile

But ya, i never bought anything from xbox live unless i had a  game come with points which it did once. I don't know why i got a xbox 360, i haven't played it like forever...

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I don't think I would want a contract like this for anything.

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