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Microsoft hit with cash-for-Points lawsuit

Lawyer cries fraud over Xbox Live download payments

Internet Security Threat Report 2014

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. ®

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