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Square Enix Sued For $5 Million Over Final Fantasy XI
by Kris Graft
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June 25, 2009
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A San Francisco, Calif. resident filed a class action suit against Wash.-based Square Enix Inc. last week, accusing the company of deceptive advertising, unfair competition, and unjust enrichment related to the online game Final Fantasy XI.
The suit, filed June 18 in the Central District of California U.S. District Court and uncovered by Courthouse News, is seeking $5 million in damages. "[Square Enix] engaged in various levels of deceptive advertising, unfair business practices, and fraudulent concealment with respect to the online games at the point of purchase," the suit said.
The filing alleges the following against Square Enix:
"This case narrowly focuses on Defandants deceptive advertising, unfair advertising, and fraudulent concealment to conceal certain critical information about their online games. The deceptive advertising, unfair and undisclosed business practices, and concealment concern, among others:
1. Licensing of the online games software disguised as a sale
2. Monthly fees ("fees") to play online games
3. Penalties for late payment fees
4. Interest charges for late payment fees
5. Charges while the online game account is suspended
6. Termination of the right to use the online game for late payment of the fees
7. User restrictions and conditions related to the online games
8. Termination of game data for late payment of the fees
The filing estimated that the number of people to take part in the class action "will number greater than 100,000", based on the "Defendant's online game database."
The suit added, "Through false advertising, unfair and undisclosed business practices, and fraudulent concealment in connection with the advertising, marketing, promotion and sale of the online games, Defendants reaped benefits which resulted in their wrongful receipt of revenues."
[UPDATE: Clarified paragraph before allegations.]
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I don't know what kind of legalities there are around the charging of late fees and interest and such, but I can't imagine a judge would side with the plaintiff on most of those charges, because the judge would in effect be ruling against the business model of the commercial software industry.
"6.Termination of the right to use the online game for late payment of the fees"
I don't know of any MMO that does this.
This really sounds like another poorly constructed law suit that will just end up being thrown out at court.
I've seen this phrase popping up in lawsuits lately, but I just can't imagine some law dictating how much "enrichment" is just, and how much is "unjust".
The question is not how much money they make, but how they made the money. Unjust enrichment is defined by someone gaining 'enrichment' (which may be money, property, value, etc.) from another person by means that are unlawful (thus, unjust.)
Just as above, I can't tell by the article what could possibly be considered unlawful in SE's manner of advertising their MMO. I played it for years, and while their process is complicated, their billing methods are clearly established in their terms and conditions... (which you are supposed to read before playing.) It is nearly identical to the T&Cs of most MMOs out there, and their billing processes vary little.
Sounds like a case that the judge will laugh at.
Rather, lawsuit actually states that "This case narrowly focuses on Defandants deceptive advertising, unfair advertising, and fraudulent concealment to conceal certain critical information about their online games. The deceptive advertising, unfair and undisclosed business practices, and concealment concern, among others:
1. Licensing of the online games software disguised as a sale
2. Monthly fees ("fees") to play online games
3. Penalties for late payment fees
4. Interest charges for late payment fees
5. Charges while the online game account is suspended
6. Termination of the right to use the online game for late payment of the fees
7. User restrictions and conditions related to the online games
8. Termination of game data for late payment of the fees"
However, I don't blame the writer for this lack of clarity. The complaint apparently lacks any facts that tell you why the plaintiff(s) believe that Square Enix has engaged in "deceptive advertising, unfair advertising, and fraudulent concealment to conceal certain critical information about their online games."
This complaint has just made general allegations and will likely be amended. If not, I don't see how it could withstand motion for summary judgment. We will just have to wait and see.
That Here is the link the the lawsuit which will clear things up for you: http://www.courthousenews.com/2009/06/24/SquareEnix.pdf.
@John: Unjust enrichment is just a legal theory that describes a basis for recovery in a lawsuit. Here is a paragraph that might help:
"Unjust enrichment suffers from a confusion of nomenclature.(4) Although it is referred to as "quasi-contract" and said to be based upon a "contract implied in law," it is not a contract at all. Rather, it is legal fiction described as "an obligation imposed by law to do justice even though it is clear that no promise was ever made or intended."(5) By contrast with quantum meruit, recovery for unjust enrichment is not premised upon there having been "assent" between the parties. While quantum meruit arises out of the expectation of the parties, unjust enrichment is based upon society's interest in preventing the injustice of a person's retaining a benefit for which no payment has been made to the provider. "
Of course, as yet another FFXI player, this really seems like a whole bunch of bollocks. My only theory is some jackass thought he could be funny by not paying because he thought "this can't be right/legal", and is now suing for the ensuing shitstorm he brought upon himself.
I've read the first half of the lawsuit in question, and it really is vague as to what leg the plaintiff Esther Leongis trying to stand on. It is people like the plaintiff that just attempt to screw people over stupid loopholes that just end up wasting everyone's time and money. What a joke.
Just because you didn't read your contract doesn't mean it is suddenly deceiving you.
This will disappear into the compost pit.
2. Monthly fees ("fees") to play online games
Meaning fees over the original monthly "fee"
This I can see as unethical my only question is why is this being filed now? I feel square has recently done something unethical to get this filing. This game is very old now and people including me have experienced this game and all the billing and payment schedules. I agree I am upset they continue to charge you if you stop playing the game but It is up to the player to cancel the subscription. As for the interest of not paying I can see being ethical since you were so post to be playing that month of play and didn't pay for it.
I am more curious about what exactly these "fees" are and if they really did erase the account data and force the player to lose hours of invested game time having to re-roll new characters. It is all very sketchy to me and I think we all here would back Square Enix over some punk resident who was to lazy to just cancel his subscription.
5. Charges while the online game account is suspended
Probably thought that by canceling the account any late fees would be forgotten.
How do you take part exactly?