Sections

GameStop’s motion to dismiss lawsuit over used game sales denied by federal judge

Saturday, 10th August 2013 21:36 GMT By Stephany Nunneley

A US federal judge in New Jersey has denied GameStop’s motion to dismiss a class action lawsuit filed against it by customers claiming the chain violated the New Jersey Consumer Fraud Act.

The suit was brought against the company for selling used games without single-use DLC codes included.

According to Judge Robert B. Kugler’, the lawsuite filed by three GameStop customers was due to the trio being under the impression their pre-owned titles would include all of the same content as a new copy.

The court documents obtained by Polygon also stated the plaintiffs felt DLC was an “integral feature” of the games and that GameStop “induced” them to purchase used instead of new ones.

GameStop was accused of using statements such as “our used game trade program creates value for customers,” and the plantiffs provided the receipts showing said savings by purchasing used instead of new.

Two of the plaintiffs claimed that since they had to purchased the $15 DLC separately due to the lack of a code, it cost them in total $60 instead of the $59.95 it would have cost them to purchase a new copy. retail copy with the online passes included — than they would have spent purchasing a new retail copy of the games.

Various allegations were brought against GameStop in the suit, such as one stating that the firm is “aware of material information, that DLC was not included with the purchase of pre-owned games, but did not reveal this fact to Plaintiffs.”

You can read the full thing on Polygon.

Breaking news

23 Comments

Sign in to post a comment.

  1. Professor Zoom

    Gamestop is probably one of the most retarded and greedy chains out there. Where I live they will probably give you 3 or 4 dollars for a used game and probably sell it 3 or even 10 times the money they gave you.

    #1 8 months ago
  2. MCTJim

    Why would DLC be included in a used game? I could understand the whole ONLINE pass thing that should be included, well they used to include it at GS until EA made them discontinue generating online pass codes. DLC on a used game..come on…really…this suit should be dismissed..if it were the latter of online pass inlcuded, I could see it.

    #2 8 months ago
  3. Aullah

    @1 Yea… their used game thingy really hurts the developer. I also hate they stupid preorder bonuses… they cut out parts from the game just so they can lure people to buy from them.

    #3 8 months ago
  4. Ghil

    @Aullah: before thinking about the developer, you have to know something that’s rarely said: In the game industry, selling new games gives almost nothing to the retailer. They rarely have deals that let them have more than 10% of the profit on the game, which means normally, 90% or more goes directly to the developer. You either have to sell a gajillion games to make it work somewhat while it not being your primary cash flow (think Wal-mart) or you need to sell used games to recoup the cost of operations.

    I really am not saying anything specific about Gamestop here, I’m just saying that used games would not be a necessity for them if the developers didn’t eat up all the profit in the first place, like is common in pretty much every other industry out there.

    #4 8 months ago
  5. Professor Zoom

    #4 That doesn’t mean they have to buy people’s games and then sell it for like 5 times more the money they gave you… In Denmark where I come from, a new released game costs 90 freaking dollars and when you ask Gamestop one year after how much they will give you, they most likely will say 3 or 5 dollars. And what about writers? I once knew a writer, and I once asked him if he was rich, but he said not at all, because 90% of the money his books are bought of are earned by the retailers.

    #5 8 months ago
  6. Kreion

    @4
    Are you kidding?

    First of all I think you need to consider what ‘almost nothing’ means. If it was that little they wouldn’t be able to make a chain based around the sale of games, but they and a bunch of other companies have. Not just in the Games industry, look at music, look at films: there are plenty of things like games which get along on the same model. They too often have used sections, but you don’t see films costing £30 used do you? For starters films are cheaper to begin with so it’s more stomachable for the consumer.

    Developers deserve that money, they created the game and whilst retail stores are helpful in selling them, digital sales are making them less and less relevant.

    If you want to talk about who get’s the biggest cut, the publisher usually does in all these industries. They are generally the people who put the money into the project to start with, and so they are the ones who get the majority upon completion.

    #6 8 months ago
  7. Digital Bamboo

    @Ghil “normally, 90% or more goes directly to the developer.” I think you forgot a few other expenses there.

    Found this, just going to leave it here: http://unrealitymag.bcmediagroup.netdna-cdn.com/wp-content/uploads/2011/04/game-pie.jpg

    #7 8 months ago
  8. JimFear-666

    i hope they will lose and close once and for all

    #8 8 months ago
  9. lookingglass

    If GameStop loses this, publishers will have found their golden ticket to kill pre-owned sales without disallowing them.

    $20 online pass and $20 DLC included for free! Used copies will be gutted versions of new games and GameStop will have to make that very clear to its customers.

    I don’t mind it one bit. If my game companies are bursting with cash, I’m usually getting more or better games.

    #9 8 months ago
  10. spectre197

    What the story forgets to say is the main guy suing gamestop is the same guy that sued subway because he measured a footlong at 11 1/2 ins

    #10 8 months ago
  11. darthroseman

    There’s a lot of stupid going on here. You don’t like that they sell the games for more than they give you!? Sell it yourself then. Craigslist exists. EBay exists. If you are too lazy to do the work yourself then, oh hey, it is almost as if you are paying someone to do it for you…How about this, if you think the used game industry is hurting your favorite developers, don’t trade in their games, and then no one can buy them used!! Sorry that a business exists, they are profitable because they provide a service many people use, and most people’s ACTUAL complaint is they aren’t getting a big enough cut. Nerds are always some of the dumbest people around when it comes to common sense.

    Also, this is a ridiculous lawsuit.

    #11 8 months ago
  12. PEYJ

    All GameStop has to do is put on a sticker that says “DLC and Online Codes not included”, and they wont get ridiculous lawsuits like this in the future.

    #12 8 months ago
  13. Keivz

    @12
    Indeed, but they didn’t. No DLC codes in used games is considered common knowledge to a gamer, but the laymen are clueless about that sort of stuff. Thus, the lawsuit has merit.

    #13 8 months ago
  14. Professor Zoom

    #11 Are you stupid? I never actually said that I trade in my games at all. I just feel sorry for those who do. Do you have some kinda problem with that? Gamestop are hurting the developers, they’re a very greedy chain and they need to vanish.

    #14 8 months ago
  15. stretch215

    Yeah the lawsuit definitely has merit (although it’s pretty ridiculous). The fact that the cost of the used game + the online pass costs more than a new game (plus claims of “value” for buying used) = false advertisement every day. I don’t know what kind of damages these guys think they’re going to get, though. Judges tend to look down on those who make a mockery of the judicial system.

    #15 8 months ago
  16. Cobra951

    @10: I didn’t know that, and I’m not going to bother verifying it. Essentially, you’re right: This is THAT kind of ridiculous lawsuit. The lawyers will get lots of BMW payments out of it, and no one else will benefit much, if at all. If you don’t like Gamestop’s business model, don’t deal with them. As someone else said, no one is forcing you to sell or trade your games to GS. Personally, I don’t patronize GS, but I have no problem with its existence.

    #16 8 months ago
  17. Professor Zoom

    #16 I’m not dealing with them, thank god. How many times do I have to say this? As long as their used market is there, many people are gonna sell their games to them, and I feel sorry for those who do.

    #17 8 months ago
  18. sebastien rivas

    I do purchase through Gamestop Digital once in awhile but I must say their UI and description on Gamestop Digital is controversial and requires reading through and out of the whole game page you are on.
    After all not everyone understand what DLC stands for nor could anyone see through a name extension of a title as a game extension until you read in little characters the bottom left of that page to understand that download DLC is part or extension of a main game that need to purchased first.

    Otherwise I don’t sell games unless the game I purchase really has no value to my eyes. This happened twice in last 5 years so far.

    @ 12
    I agree with you, more description should be done by Gamestop, they would not look so cheap & trick in first place.

    #18 8 months ago
  19. DSB

    I’m a big Steph fan, and I hope the guys picking on her die from internet AIDS. But I still think it’s funny how you just know who wrote an article by seeing the word “lawsuite” :D

    #19 8 months ago
  20. Lengendaryboss

    @19
    Very lucky she’s on vacation.

    #20 8 months ago
  21. zinc

    I believe a lawsuite is the furnishings within a judges chambers.

    :)

    #21 8 months ago
  22. darthroseman

    @14 Why in the world would I feel sorry for people who knowingly trade in their games? Does GameStop not tell you how much you are getting before they finalize the trade-in? Becauae I’m pretty sure everyone should know in order make money in the reselling business, you’ll have to pay people less than you’re selling it for. And you also have to pay your employees. BUSINESS! You called me stupid, then offered no rebuttal, other than GameStop is greedy. They’re a company, majority of them are greedy. You should ask some QA testers if they think video game companies aren’t greedy. Because I’m pretty sure I was underpaid, underappreciated, and not given any health insurance despite working an average of 50 hours a week. And I worked out countless DLC that was completed months before the game came out. Is that not greed?

    #22 8 months ago
  23. Professor Zoom

    #22 What are you on about? You’re just generelizing, just because Gamestop are greedy, that doesn’t mean everyone are THAT greedy, that’s the same thing with sequels, just because mario is a massively milked franchise doesn’t mean that all other franchises are milked THAT much. I’m not talking about how you feel, I’m talking about how I feel, and I feel sorry for them, when they can earn a lot more money by selling their games individually, what’s your problem with that? I can’t have this opinion? I weren’t calling you stupid, I asked you if you were stupid, since I never actually said that I were selling games to Gamestop. Games are expensive, 1 game is sold for like 90 dollars in some countries, I don’t want to pay that price, that’s more than what a whole african village can earn in a week so I don’t want Gamestop buying your games for like 5 dollars a year after, then don’t even bother having the used chain market at all.

    #23 8 months ago