Asked in Consumer Law and Internet Law for California

Q: Which US Law does online videogame microtransaction fraud fall under? e.g.: failure to provide perks/services paid for.

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1 Lawyer Answer
James L. Arrasmith
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Answered
  • Consumer Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: Online videogame microtransaction fraud may fall under consumer protection laws, specifically state laws regarding unfair and deceptive trade practices. Each state may have different laws, but many states have consumer protection statutes that prohibit unfair or deceptive trade practices, such as false advertising, bait-and-switch tactics, and failing to provide services or goods as advertised. Additionally, there may be federal laws that apply, such as the Federal Trade Commission Act, which prohibits deceptive or unfair business practices that affect commerce.

There are several consumer protection laws in California that may apply to online videogame microtransactions, depending on the specific circumstances of the case. Here are a few examples:

Unfair Competition Law (UCL): The UCL prohibits any unlawful, unfair, or fraudulent business practice, including false advertising and unfair or deceptive sales practices.

Consumer Legal Remedies Act (CLRA): The CLRA provides protection for consumers against deceptive or unfair practices in any transaction involving goods or services. It allows for damages and other legal remedies for victims of consumer fraud.

False Advertising Law: This law prohibits false or misleading advertising, and can be used to hold companies accountable for misrepresenting their products or services.

Online Terms of Service Agreements: If a game developer or publisher has a terms of service agreement that covers microtransactions, failure to provide the promised services or perks may be a breach of contract.

It's important to note that consumer protection laws can be complex, and the specific laws and regulations that apply to a given situation will depend on the facts of the case. If you believe you have been the victim of fraud or other unfair business practices related to online videogame microtransactions, you may want to consult with a lawyer or other legal professional with experience in consumer protection law.

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