Consumer Protection
Ongoing coverage on Consumer Protection.
Latest coverage
PC rental company accused of "scamming" customers settles class-action lawsuit for $3.4m
PC rental company NZXT has settled a class-action lawsuit for $3.45 million over its Flex PC rental program. Customers alleged the program was a "bait-and-switch" scheme, providing lower-quality components than advertised and misrepresenting terms like ownership and cancellation fees. The settlement includes debt forgiveness, a cash fund, and PC retention relief, awaiting final judge approval.
Stop Killing Games Campaign Scores Big Win with California Bill
A new California bill, supported by the Stop Killing Games campaign, aims to protect online games from disappearing by requiring clearer end-of-life policies from companies. While some express concerns about technical challenges and development costs, the legislation seeks to ensure players' investments and digital history are better protected. This move could set a precedent for national standards in game preservation and influence future game design towards longevity.
NZXT Pays $3.45M Settlement Over Rental PC Scam Allegations
NZXT has agreed to a $3.45 million settlement over allegations concerning its rental PC program, which has been criticized for potentially predatory practices. Independent reviews, particularly from Gamers Nexus, brought attention to the issue, highlighting concerns about the long-term cost and transparency of such rental schemes. This settlement serves as a warning to the hardware industry regarding consumer protection and corporate accountability.
Steam Game Caught Using Fake Discount Tactics to Fool Shoppers
A Steam user discovered that the game Crime Scene Cleaner appears to be using deceptive discount tactics by inflating its base price before applying a sale. The "40% off" sale price was only slightly lower than the original price, raising concerns about similar practices on the platform and the lack of clear reporting mechanisms for such issues.
The Crew – Ubisoft Hit by a New Lawsuit in France Supported by Stop Killing Games
Ubisoft is facing a new lawsuit in France from consumer association UFC-Que Choisir, supported by Stop Killing Games, over its decision to revoke licenses for The Crew. The lawsuit alleges deceptive business practices and abusive terms regarding the game's revocable license. CEO Yves Guillemot defended the company's actions, stating that game support cannot last forever and that this is an industry-wide issue.
OkCupid settles FTC case on alleged misuse of its users' personal data
OkCupid and its parent company Match Group have settled a lawsuit with the Federal Trade Commission regarding alleged misuse of user data in 2014. The dating service was accused of sharing three million user photos and location information with a third-party AI company, Clarifai, without proper user consent. The settlement prohibits future misrepresentation of data collection practices and consumer choices, with OkCupid stating current practices are strengthened.
Jury rules against Meta, orders $375 million fine in major child safety trial
A jury in New Mexico has found Meta liable for violating consumer protection laws related to child exploitation and safety, ordering the company to pay $375 million. The lawsuit alleged Meta knew its platforms put children at risk and failed to implement adequate safety measures. Meta plans to appeal the verdict, while the state intends to pursue a public nuisance trial.
Baltimore sues xAI over Grok deepfakes
The city of Baltimore has filed a lawsuit against xAI, alleging that its AI chatbot Grok violated the city's Consumer Protection Ordinance. This action follows widespread criticism of Grok's image generation tool for creating millions of sexualized images, including those of minors. The lawsuit claims xAI failed to disclose the risks associated with using Grok and the X social network.
Steam Still Selling $50 Kerbal Space Program 2 Despite Studio Closure
Kerbal Space Program 2 remains on sale for $50 on Steam despite its development studio closing nearly two years ago, with the last update occurring around the same time. Players are criticizing Steam for not providing clearer warnings about the game's abandoned status, highlighting issues with the Early Access model's integrity. This situation raises concerns about consumer protection and could prompt reforms on digital storefronts.
Adobe agrees to pay settlement for making its subscriptions hard to cancel
Adobe has agreed to a $75 million settlement with the US government to resolve a lawsuit alleging deceptive subscription practices. The company was accused of making it difficult to cancel subscriptions and obscuring early termination fees. Adobe denies wrongdoing but will provide free services and pay the settlement amount, while also stating it has streamlined its subscription processes.
Valve faces a second lawsuit over game lockboxes as it argues that they’re exactly like trading card packs
Valve is facing a second lawsuit, this time a class action in Washington state, concerning its in-game lockbox monetization. The lawsuit alleges that these lockboxes are designed to mimic slot machines and employ psychological mechanisms similar to casinos. Valve has previously compared lockboxes to trading card packs in response to a similar lawsuit filed by the New York attorney general.
Valve facing second, class-action lawsuit over loot boxes
Valve is facing a second class-action lawsuit alleging that loot boxes in games like Counter-Strike 2, Team Fortress 2, and Dota 2 constitute illegal gambling, particularly targeting children. The lawsuit claims Valve engineered these systems using casino-style tactics to extract money from consumers, and that the virtual items obtained are valuable as they can be sold for real money.
WARNING: Scam Text Message " Use to complete PAYMENT at ASDA "
This article warns readers about a scam text message impersonating ASDA payment confirmations. The message, which includes a fake payment amount and a contact number, is identified as a scam. Readers are advised not to reply, to block the number, and to be vigilant against similar fraudulent messages regarding payments, deliveries, or family contact.
