GOOGLE DEFEATS LAWSUIT OVER GIFT CARD FRAUD

A federal judge has dismissed a proposed class action lawsuit accusing Google of profiting from gift card scams on its Google Play platform. The plaintiff, Judy May, argued that Google was complicit by retaining transaction fees on fraudulent purchases made with the cards, and that Google should have provided scam warnings on the packaging. However, Judge Beth Labson Freeman ruled that May could not prove Google directly caused her losses or knowingly accepted stolen funds. She noted that Google’s commission, ranging from 15% to 30%, was unrelated to the original fraud.

This ruling comes amid a broader issue; Americans reported losing $217 million to gift card scams in 2023 alone, with Google Play cards accounting for around 20% of cases, according to the FTC. The true toll of these scams may be even higher, as the data only reflect reported incidents. While the door remains open for May to refile her suit, a claim seeking triple damages has been permanently dismissed, underscoring the challenges victims face in recovering funds lost to such schemes. 

#GooglePlay #GiftCardFraud #ConsumerAwareness #FTC