Feeds

Microsoft hit with cash-for-Points lawsuit

Lawyer cries fraud over Xbox Live download payments

Build a business case: developing custom apps

Microsoft is facing a class-action lawsuit over the way it charges for digital content served up by Xbox Live.

Samuel Lassoff, a lawyer from Horsham, Philadelphia, last week filed a complaint against the software giant. He told the US District Court for Eastern Pennsylvania that Microsoft breached its contract with users such as himself by "collecting revenues for digital goods and services which were not provided".

He alleged the company "engaged in a scheme to unjustly enrich itself", behaviour he said was "fraudulent".

Lassoff's beef centres on the use of Microsoft Points - tokens purchased with real money and then spent on games, movies and so on at the Xbox Live Marketplace.

Microsoft Points are sold in fixed amounts which are typically more than an individual might require to buy just one or two downloads. That leaves them with a stack of Points left over that they may not need and, crucially, can't recover.

Earlier this month, Microsoft said it will state cash values alongside downloads' Points prices - a move it may roll out in the UK. The company has even mooted abolishing Microsoft Points altogether. ®

The essential guide to IT transformation

More from The Register

next story
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
End of buttons? Apple looks to patent animating iPhone sidewalls
Filing suggests handset with display strips
One step closer to ROBOT BUTLERS: Dyson flashes vid of VACUUM SUCKER bot
Latest cleaner available for world+dog in September
Samsung Gear S: Quick, LAUNCH IT – before Apple straps on iWatch
Full specs for wrist-mounted device here ... but who'll buy it?
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
Tim Cook in Applerexia fears: New MacBook THINNER THAN EVER
'Supply chain sources' give up the goss on new iLappy
Reg man looks through a Glass, darkly: Google's toy ploy or killer tech specs?
Tip: Put the shades on and you'll look less of a spanner
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.