In a significant legal victory, a federal judge has dismissed a proposed class action lawsuit against Google LLC, which accused the tech giant of profiting from scams involving Google Play gift cards. The ruling, issued by U.S. District Judge Beth Labson Freeman, found that the plaintiff, Judy May, failed to demonstrate that Google was responsible for her financial losses or aware that it was receiving stolen funds.
The lawsuit stemmed from an incident in April 2021, when May lost $1,000 after being duped by a scammer posing as a relative. The scammer instructed her to purchase Google Play gift cards under the pretense of qualifying for federal grant money. May argued that she would not have purchased the cards if Google had provided warnings about potential scams on the packaging.
Judge Freeman noted that while May experienced financial harm due to the scam, there was no evidence that Google caused her losses or directly benefited from the fraudulent activity. Furthermore, the court ruled that Google could not be held liable for retaining commissions ranging from 15% to 30% on transactions made with the gift cards, as its actions were unrelated to the initial fraud.
Although Judge Freeman dismissed May’s claims for triple damages permanently, she allowed for the possibility of re-filing some aspects of the lawsuit. This case highlights the growing concern over gift card scams in the U.S.; according to the Federal Trade Commission (FTC), Americans lost approximately $217 million to such frauds in 2023 alone.
As gift card scams continue to proliferate—accounting for about 20% of reported fraud cases—the FTC emphasizes the importance of consumer education and vigilance. The case is officially titled *May v. Google LLC et al.*, U.S. District Court for the Northern District of California, No. 24-01314.
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