Microsoft Hit With Class Action Suit Over Xbox Live Fees

By Paul McDougall

InformationWeek
November 13, 2007 03:14 PM

A man who claims Microsoft (NSDQ: MSFT) improperly allowed his underage son to use his debit card to subscribe to the company's Xbox Live gaming service and automatically renewed the subscription without authorization is suing the software maker for consumer fraud.

In a cl@$$(stupid filter) action suit, Georgia resident Francisco Garcia claims that in October 1995 his son, Silvario, used his debit card to buy a $49.99, one-year subscription to Xbox Live. The service lets Xbox owners play games like Halo 3 against each other over the Internet.

A year later, Garcia claims, Microsoft automatically billed him for an additional year of Xbox Live without his knowledge or consent. He contends that the charge sent his checking account into overdraft, and that his bank slapped him with a $35.00 penalty.

Garcia says Microsoft refunded the subscription fee but didn't cover the bank penalty.

By accepting a subscription from a minor and automatically renewing it without consent, Microsoft "fraudulently induced a contractual relationship for Xbox Live services," Garcia claims in his suit.

The action was originally filed in August in state court in Georgia. In September, Microsoft filed a motion to have the case moved to federal court.

Garcia claims Microsoft broke Georgia law when it allowed a minor to use a debit card to sign up for Xbox Live, and flouted consumer regulations when it renewed the service without written authorization.

Garcia is seeking unspecified damages and is asking the court to broaden the case to include all Xbox Live customers in Georgia hit with similar problems.

Microsoft has asked the federal court to dismiss the case, claiming it has paperwork that proves Silvario Garcia misrepresented his age when he subscribed to Xbox Live by falsely stating that he was at least 18 years old.

Source: InformationWeek (although I really stumbled upon it while searching Kotaku)

Thoughts everyone? lol

Umm it says October 1995....did this guy get a time machine and play Xbox Live by himself in 1995?

In a cl@$$(stupid filter) action suit, Georgia resident Francisco Garcia claims that in October 1995 his son, Silvario, used his debit card to buy a $49.99, one-year subscription to Xbox Live. The service lets Xbox owners play games like Halo 3 against each other over the Internet.

GungraveZero

Who doesn't have $49.99 in their checking account? LOL, it amazes me how many people sue over little cr** these days. He should just make his kid pay him the overdraft fee since the rest was already refunded.

So he is taking MS to court over $35. Have fun wasting your time buddy, you have no case.limpbizkit818

If I was the judge, I'd force Microsoft to hand the company over.

If this guy knew about Xbox live, the Xbox, the Halo franchise, and how to get billed for a service that didn't exist yet, he is one force that is not worth reckoning with....Think Master Chief times one thousand.....with god mode....and a tank.

Jesus people it's just a typo. I'm sure it means 2005.

This guy has not case for two reasons:

1) his son misrepresented himself as over 18 when he made the account, and

2) MS doesn't charge you for recurring subscription fees unless you check the box that allows them to do so when you first sign up for XBL

Sounds like someone just looking to pick a fight. Funny that he'd waist the $25 charge to file a suit in court when he only lost $35 from the whole thing anyway. MS refunded his money even though they didn't have any real reason to and he goes and throws a legal hissy-fit over 35 bucks. Real mature man.

Live requires a credit card, you have to be 18 to get one (or a gamer card which his son can buy at the store). So maybe the father needs to point the finger at himself, because his son pulled a fast one on him. Microsoft is not in the wrong this case is so ridiculous its not even funny. Class Action? You mean there are more of these moronic parents out there, I would be too embarressed to be part of such a frivilous suit.

Then you have to take into account the Microsoft Legal Machine, a company that has 65billion just laying around has lawyers out the wazoo. There are states that couldnt afford to sue Microsoft, so good luck budy, hope you have gotten this done pro bono.

If the kid falsified his age I think Microsoft is not at fault. I thought that it even tells you when you sign up that your subscription will be renewed automatically unless you cancel it which is like many other pay to play services. I think it is completely ridiculous that this guy is getting all worked up over a $35 fee. It sounds like the parent is claiming that Microsoft knew that the he was a minor and allowed him to use a debit card which I doubt is the case. The kid should be punished not Microsoft.ChevelleFan

Well said.

Jesus people it's just a typo. I'm sure it means 2005.

This guy has not case for two reasons:

1) his son misrepresented himself as over 18 when he made the account, and

2) MS doesn't charge you for recurring subscription fees unless you check the box that allows them to do so when you first sign up for XBL

Sounds like someone just looking to pick a fight. Funny that he'd waist the $25 charge to file a suit in court when he only lost $35 from the whole thing anyway. MS refunded his money even though they didn't have any real reason to and he goes and throws a legal hissy-fit over 35 bucks. Real mature man.

true_apollo

Lol. Another well said statement. If he got his money back, why would he want to file a lawsuit for more money? Its going to be a one man army.