Zynga Loses Lawsuit Dismissal Bid

[Andy Chalk]

Zynga Loses Lawsuit Dismissal Bid

A federal judge has refused Zynga's request to dismiss a deceptive advertising lawsuit against it, ruling that the plaintiff has "sufficiently alleged Zynga's role in the fraudulent scheme."

A class action lawsuit against YoVille [http://www.zynga.com], which resulted in four separate charges to her bill of $9.99 "without her knowledge or consent." After that she gave her credit card number to a "risk-free Green Tea Purity trial," which ultimately resulted in unforeseen charges of $165.

Zynga had asked that the lawsuit be dismissed on the grounds that, based on the Communications Decency Act of 1996, it cannot be held responsible for content generated by a third party. Judge Sandra Armstrong disagreed, however, ruling that the plaintiff had "sufficiently alleged" Zynga's role in the creation of the ads, which exposed it to the lawsuit through exceptions to the Act.

The judge likewise refused to dismiss the suit against Adknowledge [http://www.adknowledge], Zynga's advertising partner and co-defendant, which had similarly argued that it is an "online intermediary that merely 'presents' third-party advertisement from its Internet 'interface' to end users" and was thus immune to the action.

The ruling [available in PDF format [http://www.courthousenews.com/2010/11/08/Zynga.pdf]] isn't a determination of Zynga's liability, just of the plaintiff's right to pursue the case against it. "The Court cannot determine at this juncture, based on the pleadings, whether Zynga is entitled to immunity under the CDA [Communications Decency Act]," it reads. "Rather, the FAC [First Amended Complaint] alleged facts which, if proven, could support the conclusion that Zynga is responsible, in whole or in part, for creating or developing the special offers at issue."

Zynga is also facing a FarmVille [http://www.escapistmagazine.com/news/view/104556-Zynga-Sued-Over-Facebook-Leak].

Source: Courthouse News Service [http://www.courthousenews.com/2010/11/08/31698.htm]


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[Celtic_Kerr]

I havn't heard of this before. VBey interesting. I played farmvill for a month a while ago and have seen these adverts. They seemed realluy sketchy, but then again giving out your credit card number for fake currency in a facebook game is just a bit sad

 

[rembrandtqeinstein]

Zynga is a company whose CEO [link src="http://www.escapistmagazine.com/news/view/96024-Zynga-CEO-Admits-to-Being-a-Scammer]openly and unashamedly admits to being a scammer[/link].

Why would anyone have anything to do with them is beyond my comprehension.

Maybe these kinds of things will make people more aware that anyone who asks for any kind of personal information from you is probably scamming you in some way.

 

[samsonguy920]

Cry Hax! And let loose the dogz of law!

I seem to recall that there are laws out for full disclosure of what a service intends to do with any information given it. Such as phone numbers, credit cards.
Maybe its just a state law I heard getting passed.

Either case I wish the best of luck to this lady, and I hope she got a good attorney.

 

[rsvp42]

I would never give my phone number away for in-game currency. That's just asking for trouble. At best, she gets spammed with calls from telemarketers, at worst this happens. With free-to-play games like this, either spend real money for the perks or don't get them because "free" in-game currency is anything but. Didn't her parents teach her any of this?

 

[mattaui]

I'm tired of clearly deceptive advertising on the Internet and otherwise 'reputable' companies that run ads for said services and participate in scams like selling your email address to third parties or signing you up for bogus 'rewards programs'. They get away with stuff that would have a local business run out of town.

Are people foolish for falling for such scams? Sure they are, but that doesn't make me sympathetic for the thieves that try to take advantage of them. I'd love to see Zynga and the related advertising networks take a hit in the pocketbook for this.

 

[The_root_of_all_evil]

Zynga: We're above the law because people need us.

 

[Ashley Barnes]

Although I can't say I don't feel sorry for Rebecca Swift, but to be honest, any one with decent common sense knows that giving out card details to places that aren't widely known and trusted is simply asking for trouble... Although I do totally agree that the fact is said "risk free" is enough to make most people accept almost anything. But the mobile phone thing is definately a fix that should be dealt with... Anyway, I hope her case ends well, Zynga can't stop trying to sell me points one way or another. Really frustrating! Lol

 

[DeadlyYellow]

Anyway, once again we are seeing that stupidity and ill ability to do research on a subject means that you can SUE SOMEONE FOR IT!

There are relatively few companies that do not openly prey upon the stupidity of their consumers.

But I do enjoy it getting stuck to Zynga. Their practices have earned them a Kotick-like infamy.

 

[Arachon]

Whilst I'm in support of the lawsuit, I can't help but wonder how daft this Rebecca Swift must be... Does she leave her door unlocked when she's away from home? Does she leave her car keys in the ignition as well?

 

[CitySquirrel]

Anyway, once again we are seeing that stupidity and ill ability to do research on a subject means that you can SUE SOMEONE FOR IT!

If all the legal responsibility was left in the consumers hands, we would be screwed. Who would you trust? Before you try to draw a distinction between Zynga and their advertising partners and "regular" businesses, remember that the laws making them accountable were put into place because they were doing dishonest things. The market cannot function without trust because people will not consume if they do not have confidence in who they are buying from. These laws leave people free to do business (both producers and consumers) and not spend their time worrying that they are going to be ripped off.

 

[SnootyEnglishman]

Responsibility lies in in both parties here. One for Ms. Swift for not using the proper common sense to see that if an advertisement asks for personal information for in-game currency it may just be a scam. However Zynga should also have been paying attention to the people behind the ads as well (i'm not going in Zynga's favor here to be clear) so that this type of thing shouldn't be happening.

 

[sooperman]

If the case does go through, Zynga is just going to settle without making a fuss. That seems to be their strategy: break the law and then settle the suit. Maybe this will turn out differently because there are other parties involved, but I don't imagine this will attract too much more attention.

 

[CitySquirrel]

Or maybe businesses should have more control over this sort of thing so not to fear being sued. It's not the business's fault that their consumers are stupid.

I'm curious if you even read anything I said. And are you actually listening to yourself? It is not the fault of a business, that lied about its services, that their customer believed its lies? That is like saying that, when I catch someone cheating at cards, it is my fault for playing against a cheater. I obviously couldn't know they were cheaters until they did it.

I'm not even sure why I'm bothering but, since you seem to be on the side of business over consumer, let me explain why these laws are also good for businesses. Lets say that I want to start my own business selling some kind of virtual good. If people are getting ripped off by online businesses, like Zynga, and they have no legal recourse (are not able to sue), they are less likely to buy from my business. Why? Well, because if I rip them off, they can't do anything, obviously. It is too big a risk. But if there are laws saying that the responsibility for providing an honest service rests on me, and my potential customers know that if I prove to be dishonest then they can get their money back, they will be far more likely to buy my services because their is little risk. So you see how the regulations create a sense of trust that allows our glorious capitalist system to continue.

 

[Mordwyl]

Karma is a ***** isn't it, Mark Pincus?