New York State attorney general Andrew Cuomo is going after GameStop and other retailers over fraudulent fees. Here’s the skinny from GamePolitics:
The AG’s office believes that GameStop and the others have been “tricking customers into accepting offers from third party vendors, which then siphon money from consumers’ accounts.” Because of the relatively low dollar amount of the charges, the fees may go unnoticed for some time.
The names of the companies involved read like a laundry list of e-commerce: Barnes and Nobles, Expedia, Pizza Hut, Staples.com, Travelocity, Classmates.com, etc. According to Cuomo, the three discount clubs under investigation bring in a combined $1+ billion per year, much of which Cuomo believes is fraudulent.
That’s right Pizza Hut and GameStop! You don’t mess with New York!!! You don’t want an Italian guy from Queen coming after you. Trust me on this one.
Where is the proof/anything connecting the two. There isn't even a mention on what those "fraudulent fees" are. I don't accept a they're there answer. Sounds to me like someone needs to put the bong down for a minute. (Most likely one of his "campaign contributors" put him up for this.)
I'm a Gamestop buyer but I don't know about any fraudulent fees. is this supposed to be company wide?
None of you are taking my warning of Italian-Americans from Queens seriously. You don't Andrew and his dad coming after you!
@sandrock
I would imagine those fees are on bank statements. This is very plausible.
@Smartguy I was wondering about credit on gift cards from trade-ins. Do small amounts disappear without the owner knowing about them?
@Ray – I know that Italian-Americans from the buroughs are able to handle many tasks at once, especially when it comes to running a legitimate business and the mob that built said business, but should he be taking on BoA and Gamestop at once. Do you think he got one of these "phantom" charges on his account because he secretly plays Style Savy during his downtime?
Somehow I wouldn't be surprised to hear proof of gsmestop doing something like that. I guess I can just believe that a business that I already don't hold in the highest regard to do something a little low like this.
@LarcenousLaugh The rumor is that he loves Pop Cutie for Nintendo DS.
@Ray
the gift card balance is a liability not an asset on a balance sheet. Using a giftcard balance incrementally is a way of boosting revenue. In other words when the balance is zero, the liability is gone.
This was done a few years ago on walmart giftcards.
If he had said where those fees were at, I might take him seriously.
@Sandrock
Here is a link, it looks conclusive.
http://www.ag.ny.gov/media_center/2010/jan/jan27a…
@Smartguy
Thanks and now I know, because knowing is half the battle, that he is higher than a space station. I buy games through GameStop online all the time and have never been redirected to another site. He must have some good crack IMO.
@Sandrock
It seems that it only applied to those who were seeking promos or discounts. The associate vendor would do micro transactions based on the payment info from GameStop. I think the article references that Fandango theaters was doing this as well for tickets purchased online. Walmart used to do the giftcard thing I mentioned to Ray earlier.
As long as you aren't an ad clicker, you are fine it seems lol.
@Smartguy
If they click the link then it is their fault no matter what happens afterward. GameStop has no control over what info people disclose on other sites.
"If your a moron, please leave you bank account number, SSN, and any other info her and I pomise when I am King of Nigeria I wil give you $1,000,000!!!"
Glad to see someone finally go after gamestop
@sandrock
gamestop is at fault the same way an adult would be by giving a minor something illegal. Besides, I don't see how there isn't any egg on the face of gamestop if their site contains malicious ads offering you discounts on gamestop products and the products and services of their partners.
@Smartguy
I just went to their site and went all the way to the purchase page and there wasn't a single ad along the way. That is why this guy is on crack. GameStop has no ads on their site. Also, if networks aren't held liable for the ads on their TV channels, then why should a website be?
@sandrock
networks are held liable. CBS paid a fine for a nipple.
It probably is a New York thing. If it were the whole thing then I would imagine it would become a fed issue seeing as how interstate commerce is now involved.
@smartguy
actually CBS paid for the halftime show, slip up, that's not an advertisement. I think the "paisan" had some malware installed on his pc and didn't know. Now, he thinks it was one of the websites mentioned that installed it and charged him. He's trying to save face for his lack of computer skills.
@tokz
CBS did not own the Superbowl nor were they the sponsor. The halftime show in of itself is an advertisement for whoever sponsors it. It doesn't matter. You are overlooking a few things. First it is mentioned that Fandango was found liable for the same charge and they acquiesced and stopped the practice. Also this wouldn't be an issue if some consumer protections were put in place there. I think this is a legitimate charge but is being used to soak a company with a heavy fine. NY needs the money.
@smartguy
Please read this link below about the FCC fine CBS paid for the Super bowl.
http://www.msnbc.msn.com/id/11844455/
Secondly, this article doesn't mention Fandango as the 21 companies being involved in this suit. I heard of Fandango's thing and I've seen it done. I clicked on it once and read right through the terms and conditions. If you (not you but the person who's clicking the mouse) decide not to read it through then it's your fault (not you but the person who's clicking the mouse). It's like the people who fall for the you just won an xbox 360 or PS3 or the Ipad. I've heard people had a bunch of headache with Spam and telemarketers but when you click on it and join up it's part of the fine print at the bottom of the page. If people would actually read what they're getting into before committing this could be avoided.
***I like to point out i'm not condoning what these companies did or are doing but people should take responsibility for their own actions as well******
It might have been the parent company Viacom who had to write the check.
Also I am studying Civil Law (napoleonic code) which is what we use in my state. The guess about consumer protection being inadequate and just soaking companies with large fines that contain escalators for the amount of infractions is purely suppositional.
So they're supposedly running the 'Office Space' scam?
@Smartguy
CBS aired it as part of "their" televised content. They got in trouble because it was part of the Super Bowl "they" were covering. Ads are held accountable to the people who make them. Why do you thing G4 wasn't sued into the ground for all those enzite(?) commercials.
@Sandrock
You just took up my side of the argument. Gamestop is responsible for the ads and promotions they endorse or give page space to. I can't just put an ad on Ray's site. He has to agree to that. I can't use Gamestop's logo and offer promotions without their consent. You might not like it, but Gamestop is more than likely being complicit in something that a lot of companies do and have done. No company is above doing something unethical. The NFL, Google, MS, Sony, Gamestop, hell..even the government.
Seriously, read up on NY statutes pertaining to commercial fraud and the definitions of complicit and cause. You will find that it fits. One thing that is uncertain is what kind of subpoena it is. Grand jury would mean that substantial evidence was presented to more than just a judge to get it. A "regular" subpoena would mean that a judge felt there was compelling cause to issue it.
It has to be a NY thing like Smartguy says. NY has a bunch of crazy laws that are geared to siphon money. Hell, the reason I didn't move there from Pittsburgh was because as a musician, it's against the law to call up a bar and say "Can my band play at your fine establishment?" without a license to do exactly that.
Businesses are not above any state laws no matter how big their business is either. When Tommy Chong served time for "Chongs Bongs", he served his time in Allegheny County PA because that was the COUNTY that prosecuted him. He shipped a bong through the internet to someone in Pittsburgh where it's illegal to distribute paraphernalia of the such and they arrested him and made an example of him. It shut down Chong's Bongs too. Meanwhile, what he did was legal in just about everywhere else in the US.
Hell, there's a town in Michigan that says it's illegal to sleep with your shoes on. It was designed to arrest vagrants from the rail cars back in the '40's but it's still on the books.
You guys know what the "rule of thumb" really is, right? There's a town in Texas (I believe) that says you can take your wife to the courthouse steps on Sundays and beat her with a stick no thicker than your thumb.
Laws can be crazy things. Hell, the Supreme Court just recently ruled that Pennzoil can buy the next President.
@Smartguy Your ads would be an improvement over the garbage I've been getting from ***********.
@Redd75 I believe that's the Superman III scam, thank you very much.
I totally blanked on the fact that they mention "like in Superman III"…my bad.