Google has won a lawsuit over Google Play gift card scams with a judge ruling that the tech company is not liable for losses incurred by such fraud. A lawsuit claimed that the search giant illegally profited from gift card scams by refusing to refund victims.
Citing a decision by US District Judge Beth Labson Freeman, news agency Reuters reported that the plaintiff, Judy May, has failed to demonstrate that Google caused her losses or knowingly received stolen funds. May lost $1,000 in a scam where she was tricked into buying Google Play gift cards.
The judge also determined that Google was not liable for retaining its standard commissions –15% to 30% – on purchases made with the gift cards, as this practice was unrelated to the initial fraud.
While Freeman dismissed the lawsuit, she granted May the option to refile her case. However, a claim for triple damages was permanently dismissed, the report said.
What is Google Play gift card scam and why the company was sued
A class action lawsuit against Google was filed earlier this year, alleging that the tech giant illegally profited from gift card scams by refusing to refund victims.
The lawsuit stemmed from a $1,000 loss suffered by Indiana resident Judy May, who fell victim to a scammer posing as a relative. The scammer convinced May to purchase Google Play gift cards under the pretence of securing federal grant money. May provided the gift card codes to the scammer, who then used them to make purchases.
A class action complaint claimed that “over nearly a decade, Google has knowingly kept millions of dollars in stolen money from victims of gift card scams who purchased Google Play gift cards.”
The lawsuit argued that Google should have warned consumers about scams on gift card packaging and
that anyone demanding payment with the cards was a scammer. She also accused the company of profiting from the fraudulent activity by keeping commissions on purchases made with stolen gift cards.