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  New York Attorney General Investigating GameStop For Deceptive Practices
by Chris Remo [PC, Console/PC]
9 comments
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February 4, 2010
 
New York Attorney General Investigating GameStop For Deceptive Practices

GameStop's online store is one of 22 retailers being investigated by the office of New York State Attorney General Andrew M. Cuomo for deceptively redirecting customers to fee-based membership programs after advertising discounts.

Cuomo claims the retailers present customers with offers of cash back or other forms of discounts, but those customers are sent to the websites of external organizations which bury their membership terms in fine print and which earn revenue by way of small, repeated, and often-unnoticed, credit card charges.

A statement released on the Attorney General's official site says the office has subpoenaed the 22 companies, which also include Buy.com, Barnes & Noble, and Priceline.com.

GameStop VP Chris Oliveras told Kotaku that the company does "intend to work fully with the New York AG's office." Another company, the online ticket sales site Fandango, has already settled with the office and has paid $400,000 in consumer restitution.

Cuomo's office says it took action after receiving "numerous" complaints from New York residents who received unauthorized charges after completing online offers and were unable to receive full refunds and cancellations.
 
   
 
Comments

Jeremy Reaban
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Also nice if they did something about their practice of selling opened games as "New".

Roberto Alfonso
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I read once that whenever a game was virtually out of stock (due demand or extremely rare ones, like Atlus first print for most of their Nintendo DS games) they would open the copies themselves and sell them as used with a higher price. Scary stories are told about GameStop.

Jordon Biondo
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"power to the players" not true
I realize that the ultimate goal of a business is to make money, but you still need a respect for the gaming industry and a respect for the gamers. Gamestop seems to be losing both.

John Petersen
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Not suprised

steve roger
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"Cuomo claims the retailers present customers with offers of cash back or other forms of discounts, but those customers are sent to the websites of external organizations which bury their membership terms in fine print and which earn revenue by way of small, repeated, and often-unnoticed, credit card charges."

What websites are they talking about? I have never had this happen in a Gamestop store. Nor have I seen anything like this in their print or web based advertisements.

How about some specifics.

Adam Piotuch
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Gamestop is the last games retailer I go to. And if by chance I'm there and find something I like, I check every other retailer first to see if they have stock. I have been boycotting them since I bought a set of 'new' controllers from them, and I discovered they were simply repackaging old broken ones. When I tried to return them less than a week after purchase (because they were all broken) they would only exchange them, and they forced me to leave the packaging from the new set so that they could repackage my broken ones to sell again. Gamestop, your days are numbered.

David Delanty
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Gamestop isn't just the only one. And it's not only entertainment companies that do this.

I got my oil changed in 2005, and used a coupon at the place. They then offered me a 'customer rebate' deal where I would get a card that would give me $5 off future oil changes, and other maintenance for free if I bring in the vehicle within 3 months or 3,000 miles of the last oil change. Seemed pretty decent, and since the card only cost $5 to apply for, it would pay for itself with an instant rebate the moment I filled out that paperwork.

Seemed like a pretty sound deal.

But the exact same thing happened afterward with small monthly charged appearing citing some sort of advertising agency. I couldn't get it canceled by calling them, and when I found it is was from the place that changed my oil, I tried to cancel it but the guy I called was unable to help. "Call company B" company A would tell me. So I do, and you know the twist, "Call company A."

I had to file a report to my bank to stop all charges from both parties, and filed a complaint to the Better Business Bureau. One week after this, I saw them on 20/20 getting CRUCIFIED for doing this to people.

Unfortunately, this business practice is nothing new. You have to keep your wits about, and be constantly watching your own bank accounts to ensure all transfers made are valid. I'm glad people are standing up and taking action against companies like GameStop who perpetrate such things, but no matter what the scale of the backlash is, it doesn't negate the importance of keeping very close tabs on your own finances, and reading the fine print.

Ismael Escandon
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Yeah Gamestop honestly it is crap. I know it is why? I used to work there.

@ Jeremy Reaban When I worked there the games that get "Gutted" would be placed in a sealed cloth fiber disk pocket after a while they would just put them into regular white ones why? Cloth protector pockets were to much to spend on.. so now you might get scratches on your new games, lastly always ask for a sealed one the people I knew in the area I worked in would switch out used games for old ones and then take them home, I reported this.

@Roberto Alfonso I actually never saw this happen once, but what I did see was that when the "WII" consul was out of stock when they first came out.. we actually had about 5 of them in the back we would tell them it was out because the workers wanted 1 I bought mine the day of the realese before I punched in to work so I wouldn't scam people the rest of the guys just said we had none. When we did have 6 - 1 the one I bought.

Ismael Escandon
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And not just the WII all the next gen ones. If it wasn't cause I needed the money I would've blasted out of there.


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