GameStop Used Game Class Action Settlement Approved

A federal judge has preliminarily approved a class action lawsuit settlement with GameStop over allegations it sold used video games to consumers who were unable to access certain downloadable content and online feature unless they paid an additional $15, even though the game’s packaging said the content was available for free with the purchase of the game.  

Under the GameStop class action settlement, the video game retailer must, for the next two years, post signs on the shelves where used games are sold in California stores, and online, warning consumers that certain downloadable content may require additional purchases.

Perhaps even more important for gamers, though, is that GameStop will also provide $15 in cash and coupons as part of the class action settlement.

Consumers who purchased qualifying used games and who are enrolled in GameStop’s “PowerUp Rewards” customer loyalty program can receive a $10 check and a $5 coupon. Consumers who purchased a qualifying game, but are not members of GameStop’s loyalty program, can receive a $5 check and a $10 coupon.

“We are pleased that as a result of this lawsuit, we were able to obtain complete restitution for consumers, with actual money paid out to people who were harmed by GameStop’s conduct,” said an attorney representing Class Members in the GameStop used game class action lawsuit settlement. “The in-store and online warnings are an important benefit under the settlement as well, because if GameStop discloses the truth to consumers, it is unlikely that they will be able to continue selling used copies of certain games for only $5 less than the price of a new copy. In fact, we already know that not long after the lawsuit was filed, GameStop lowered prices for used copies of many of the game titles identified in the lawsuit.”

What the attorney is referring to is another allegation in the GameStop used game class action lawsuit that GameStop purchases used video games from consumers for only a fraction of the original price, and then sells them to other consumers at a marked-up price, usually around $5 less than the price of a new game, to maximize their profits.

According to the GameStop class action lawsuit, this practice allows GameStop to make more than $2 billion a year on used video game sales, without paying any royalties to video game publishers or developers.

Details on how to file a claim to receive $15 from the GameStop class action lawsuit settlement have not been released yet. Keep checking Top Class Actions for instructions once they become available.