Lawsuit says ads in social games are scamming players
National News
Gamers are crying foul play over what they claim are misleading ads on social games.
A class-action lawsuit last month highlights what thousands of consumers say are bogus offers tied to social games available on Facebook and other social networks. The 16-page lawsuit, filed in U.S. District Court in nearby Sacramento, details how Rebecca Swift, a 41-year-old self-employed resident of Santa Cruz, Calif., was lured into accepting two "special offers" from advertisers to gain extra game credits for YoVille, a popular virtual-world game developed by Zynga.
More than $200 was illegally charged to Swift's credit card over several months, the lawsuit alleges. It seeks compensation from Facebook and Zynga for Swift and thousands of others, says attorney John Parker, who represents the plaintiff.
Zynga had no comment on the lawsuit.
It claims 90% of its revenue comes from user purchases of virtual goods. Zynga says 1 million users purchase goods each month.
Facebook says the ads came from third parties, but it takes the issue seriously. It called the lawsuit frivolous and without merit.
The lawsuit illustrates the kerfuffle over misleading social-gaming ads that have frustrated consumers and scared away legitimate advertisers, who do not want to be lumped with scamsters, says Alex Rampell, CEO of TrialPay, an online payment and promotions service.
Social games are among the hottest things going online. Millions have flocked to Facebook, MySpace and elsewhere to play free games that test their wits and skills against friends.
But to gain entry to new levels of the game, an undetermined number of players unknowingly are signing up for special offers. Some of those offers, such as an IQ test and green tea offer that Swift agreed to, automatically charge the game player.
The stakes are particularly high for Zynga, which draws more than 100 million visitors a month and is eyeing a possible initial public stock offering next year. Industry estimates peg its annual revenue at $100 million to $250 million, of which $33 million to $84 million may come from these "special offers," the suit claims.
Related listings
-
Court again upholds Fla. homeowner tax breaks
National News 11/18/2009A three-judge panel Tuesday rejected another challenge to state constitutional amendments that give property tax breaks to Florida's primary homeowners, but not to owners of second homes.The panel of the 1st District Court of Appeal disagreed with ar...
-
Fla. lawyer suspected in $1B fraud losing license
National News 11/18/2009A South Florida lawyer suspected of operating a $1 billion Ponzi scheme is asking for his own disbarment.A Florida Bar committee has approved the disbarment request submitted by attorney Scott Rothstein. A spokeswoman said Wednesday the final decisio...
-
Chavez says Obama did "nothing" to deserve Nobel
National News 10/12/2009CARACAS (Reuters) - Venezuela's socialist leader Hugo Chavez said on Sunday that U.S. President Barack Obama had done nothing beyond wishful thinking to earn the Nobel Peace Prize. Chavez, who has mixed praise for Obama personally with criticism of h...
Any contracts or any transactions can go awry at any time
We know your business means a lot to you and want to understand all the aspects of your business so that we can help you in the best ways possible. We don’t discriminate depending on the size of your company. Our mission statement is to represent all business owners and entrepreneurs by navigating them through the rough waters of business litigation and guiding them to success.
We are attorneys who want to make sure we understand your business objectives and goals before we start providing you with legal counsel individualized to your business. We know what it means to be dedicated to your business. After all, we are a business as well. And just like you, we want to provide the best service we can to our clients.
Any contracts or any transactions can go awry at any time. Sometimes, making important business decisions without legal help from business attorneys could cost you your business.We don’t want you or your business to be misconstrued by anyone. Our attorneys make sure that we communicate with you often to make sure we are giving you the legal guidance you need at all times. We make sure we are responsive in a timely-manner with every single one of our clients to help them identify risks and prevent legal battles before they arise.