A proposed class action lawsuit accusing Google of profiting from Google Play gift card scams has been dismissed by a federal judge. The suit claimed that Google refused to refund millions of dollars stolen from victims, contributing to illegal profit.
Background on the Case
US District Judge Beth Labson Freeman ruled that the plaintiff, Judy May, failed to prove that Google caused her financial losses or was aware of receiving stolen funds. The case was dismissed late Monday in the US District Court, Northern District of California.
May alleged that in April 2021, she lost $1,000 after being tricked by a scammer pretending to be a relative. The scammer instructed her to contact a supposed government agent who promised federal grant money in exchange for buying Google Play gift cards. May provided the gift card codes, which the scammers used for purchases.
Judge’s Decision
Judge Freeman stated that Google’s retention of 15% to 30% commission from purchases made with the stolen gift cards was not directly related to the original fraud. Therefore, the company could not be held liable for the plaintiff’s losses. The court found that May’s claims lacked sufficient evidence to show Google’s involvement or knowledge of the fraudulent activity.
The judge noted that while May could attempt to refile her lawsuit, any claim for triple damages would remain dismissed.
Plaintiff’s Allegations
May contended that Google should have placed warnings on the gift card packaging to alert consumers to potential scams. She argued that this step could have prevented her from purchasing the cards, as scammers often demand gift cards as payment.
Response to Requests for Comment
Lawyers representing May did not respond to inquiries on Tuesday, and Google, a subsidiary of Alphabet Inc., also did not provide immediate comment.
Statistics and FTC Data
According to the Federal Trade Commission (FTC), Americans reported losing $217 million to gift card scams and reload card scams in 2023. However, the actual figure is believed to be higher since only reported incidents are included in the data. May highlighted that Google Play cards comprised around 20% of gift card scams, citing FTC data from 2021.
Case Information
The lawsuit, titled May v Google LLC et al, was filed in the US District Court, Northern District of California, under case number 24-01314. Alphabet Inc., Google’s parent company, is headquartered in Mountain View, California.