Delhi Delhi. A federal judge has rejected a proposed class action lawsuit accusing Google of illegally profiting from Google Play gift card scams by refusing to return millions of dollars stolen from victims. In a ruling late Monday, U.S. District Judge Beth Labson Freeman said plaintiff Judy May lost money because scammers tricked her into buying gift cards, and failed to show that Google harmed her or caused her to lose money. It was believed that they were getting the stolen money. The San Jose, California-based judge also said Google was not liable to keep the 15 percent to 30 percent commission on purchases the scammers made with the gift cards, because Google's conduct was unrelated to the original fraud.
May said she lost $1,000 in April 2021 when a scammer posing as a relative directed her to contact a purported government agent who told her she would receive a federal grant if she purchased a Google Play gift card. Are eligible for the amount. The Brownsville, Indiana resident said he provided the codes behind the scenes to cover alleged upfront costs, but scammers used the codes to make purchases. May said that if Google had placed a warning about the scam on the packaging, she would not have purchased the card and that anyone demanding payment with the card would have been a fraud.
May's lawyers did not immediately respond to requests for comment Tuesday. Google, a unit of Alphabet, did not immediately respond to similar requests. Freeman said May might try to refile her lawsuit, but he dismissed the claim seeking triple damages. Alphabet is based in Mountain View, California.
According to the Federal Trade Commission, in 2023, Americans lost $217 million to gift card or reload card fraud. The real amount is likely much higher because the data only covers reported cases. Citing FTC data from 2021, May said Google Play cards account for about 20 percent of gift card scams. The case is May v. Google LLC et al, U.S. District Court, Northern District of California, number 24-01314.
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