Pokémon Go Coins ‘Encourage Addictive Behavior’ in Minors, Claims Class Action Lawsuit

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Pokémon Go Coins Class Action Overview:

• Who: A Pokémon Go player has filed a class action lawsuit against Niantic, Inc.  
• Why: The plaintiff claims that the company encourages gambling-like behavior with in-app coin and loot box purchases.  
• Where: The Pokémon Go Coins class action lawsuit was filed in California federal court.  

The maker of the popular online video game, Pokémon Go, encourages addictive behaviors by inducing players, including many minors, with in-app coin and loot box purchases that are nonrefundable, according to a class action lawsuit filed in California federal court Friday.  

Lead plaintiff, Jarrett Reeves, who says he spent more than $250 on coins as a minor, wants to represent Pokémon Go players nationwide. Reeves accuses Niantic, the company that introduced the “online augmented reality video game” five years ago, of creating a lucrative profit stream from hundreds of millions of players spending real world money on in-app purchases in their pursuit to “catch ’em all.”  

“This system was created to capitalize on and encourage addictive behaviors, akin to gambling,” alleges the class action lawsuit. 

Thousands Spent on Pokémon Go Coins, Loot Boxes

While the game is purportedly free, Reeves says that Niantic has made Pokémon Go virtually impossible to play without purchasing coins, called “PokéCoins,” and loot boxes. Free coins are capped at 50 PokéCoins a day, making it difficult for players to progress.  

Pokémon Go coins are nonrefundable and the plaintiff says that Niantic fosters addictive behavior in players, many of whom are children and teens, with limited time sales and discounts on larger purchases. Currently, a player can pay nearly $100 for 14,500 within the app, alleges the class action lawsuit.  

“The PokeCoins system serves to psychologically distance players from the financial implications of their in-game purchases by disconnecting the expenditure of real money from the products the players purchase with their digital PokeCoins,” states the class action lawsuit, which points out that minors have an especially hard time keeping track of the money they spend on Pokémon Go coins.  

Pokémon Go players then use these PokéCoins to purchase loot boxes, which include various virtual tools, characters, and other items to help them in their quests, which are continually updated by Niantic. The real-world price of loot boxes is never clear, claims Reeves who says he would not have purchased many of the loot boxes he bought if he had known their value.  

Further, Niantic makes it “incredibly easy” for Pokémon Go players to purchase coins and loot boxes by saving credit card information in users’ accounts, says Reeves.  

“[A] player can purchase PokeCoins at any time almost instantly…this means minors whose parents enter and save their credit cards into a Pokemon account can use their parents’ credit cards to make an endless number of purchases,” alleges the class action lawsuit. 

Reeves wants to represent others who played Pokémon Go before turning 18 and purchased or otherwise obtained coins between July 2106 and the present. He accuses Niantic of violating consumer protection laws and unjust enrichment.  

The plaintiff also says that by encouraging addictive behaviors in minors by offering nonrefundable Pokémon Go coins, Niantic violated laws protecting children and teens from poor purchasing decisions.  

The Pokémon Go coins class action lawsuit wants to force Niantic to get parental permission before allowing minor players to make in-app purchases, as well as pay damages to players who purchased PokéCoins in the past.  

Have you or your children spent money on Pokémon Go coins, loot boxes, or other in-app purchases? Tell us about it in the comment section below! 

The plaintiff is represented by L. Timothy Fisher, Philip L. Fraietta, and Alec M. Leslie of Bursor & Fisher, PA.  

The Pokémon Go Coins Class Action Lawsuit is Reeves v. Niantic, Inc., Case No. Case 3:21-cv-05883 in the U.S. District Court for the Northern District of California.

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