Judge Won’t Dismiss GameStop Class Action Lawsuit

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Judge Won’t Dismiss GameStop Class Action Lawsuit

By Anne Bucher

 
A federal judge last week denied GameStop’s motion to dismiss a class action lawsuit in which consumers accuse the video game retailer of failing to disclose that used video games did not come with some downloadable content (DLC).

U.S. District Judge Robert B. Kugler found that the three plaintiffs in the GameStop class action lawsuit had adequately pled their legal claims. They alleged that GameStop failed to inform consumers that some of the used games it sold would not include access to content that could be downloaded from the Internet, a feature that is included in the purchase price of new games. DLC may include “extra game characters, levels, maps, screens, weapons, adventure scenarios” and the ability to play against other gamers online.

In their class action lawsuit, the plaintiffs claim that they sometimes paid more than the price of a new game when they factored in the cost of accessing DLC. While video game manufacturers frequently provide codes that allow purchasers to access the DLC, many of these codes are single use. When a consumer buys a used video game with a single use code, that purchaser is only able to use the content that was provided on the disc.

The plaintiffs allege that they purchased pre-owned games from GameStop because they believed that access to the DLC was included with the used game. In their class action lawsuit, they allege that “because the pre-owned video games were missing DLC, they did not ‘work in the same manner as a copy of the same game’ because ‘significant aspects of the original game’” were not included with their purchase.

GameStop is a Texas-based retailer that operates more than 6,500 stores around the world. The plaintiffs initially filed the class action lawsuit in New Jersey state court in June 2012 before GameStop removed the suit to federal court in August 2012. According to court documents, GameStop sold approximately 437,000 used games at its New Jersey stores from October 2010 to July 2012.

GameStop argued that it has posted signs in its stores that explain that downloaded contents may require an additional purchase. The retailer also says that the video game boxes disclose that there may be additional costs associated with online downloads. The plaintiffs disagree, claiming that GameStop never disclosed this issue. According to the class action lawsuit, the retailer states on its website that “our used game trade program creates value for customers.” The receipts indicate how much money each gamer “saved” from the purchase of a used video game.

The plaintiffs in the GameStop class action lawsuit claim that GameStop violated New Jersey’s Consumer Fraud Act. They have also asserted a claim for unjust enrichment. They are seeking refunds of $10 to $15 for each used game purchased from New Jersey GameStop locations.

The plaintiffs are represented by Stephen P. DeNittis and Joseph A. Osefchen of Shabel & DeNittis PC. 

The GameStop Class Action Lawsuit is Farley v. GameStop Corp. et al., Case No. 1:12-cv-04734, in the U.S. District Court for the District of New Jersey.

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