Google has successfully defended itself in a lawsuit concerning Google Play gift card scams, with a judge ruling that the tech giant is not responsible for the financial losses experienced by victims of these frauds. The lawsuit alleged that Google profited unlawfully from gift card scams by not refunding affected individuals.
According to a ruling by US District Judge Beth Labson Freeman, the plaintiff, Judy May, was unable to prove that Google was the cause of her losses or that the company knowingly accepted stolen money. May suffered a loss of $1,000 after being deceived into purchasing Google Play gift cards.
The judge concluded that Google was also not liable for its standard commission fees—ranging from 15% to 30%—on purchases made with the gift cards since this practice was unrelated to the original scam.
While Freeman dismissed the lawsuit, she allowed May the opportunity to refile her case. However, a claim for triple damages was permanently dismissed, as reported.
What is the Google Play gift card scam and why was the company sued?
Earlier this year, a class action lawsuit was filed against Google, claiming that the tech company profited illegally from gift card scams by refusing to provide refunds to victims.
The lawsuit originated from a $1,000 loss incurred by Indiana resident Judy May, who fell victim to a scammer impersonating a relative. The scammer persuaded May to purchase Google Play gift cards under the false pretense of securing federal grant money. May then provided the gift card codes to the scammer, who used them for purchases.
The class action complaint alleged that “over nearly a decade, Google has knowingly kept millions of dollars in stolen money from victims of gift card scams who purchased Google Play gift cards.”
The lawsuit contended that Google should have warned consumers about scams on the gift cards’ packaging and indicated that any request for payment through these cards was likely fraudulent. Furthermore, May accused the company of profiting from the fraudulent activities by retaining commissions on purchases made with stolen gift cards.
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