Judge rules Google not liable for Google Play gift card scams

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A federal judge has ruled that Google is not liable for compensating those scammed through Google Play gift cards.

This decision comes amid rising about gift card fraud, spotlighting the tech giant’s role—or lack thereof—in these schemes.

Naturally, a lawsuit against Google was filed in the hopes the company would be found liable for any damages caused by its products.

Scammers have been using Google Play gift cards to scam people. The number of gift card scams has rapidly increased, resulting in a full-fledged lawsuit against Google.

A federal judge has now determined that Google is not required to compensate victims of Google Play gift card scams.

The ruling stated that Google didn’t directly support these frauds and is not accountable for the victim’s losses. The victim claimed that Google profited from the gift cards and had the technology to detect and prevent them. 

Gift card fraud isn’t Google’s problem

The case arose when Judy May, a scam victim, lost $1,000 after being tricked into purchasing gift cards due to a fraudulent “government grant” scheme. May argued that Google should bear some responsibility, as gift card scams are widespread. 

According to the Federal Trade Commission (FTC), from 2018 to 2021, Google Play cards accounted for roughly 20 percent of all reported gift card scams.

She suggested that Google take more preventative steps, such as clearer warnings on gift cards.

Judge Freeman dismissed most of May’s claims, emphasizing that Google was not directly involved in the scam and did not induce the fraudulent transaction. 

Although May argued that Google profits from these scams due to its commission on gift card sales, Freeman found this insufficient to establish liability. However, the judge gave May 45 days to amend certain parts of her complaints. 

The ruling allows May to amend parts of her complaint but generally aligns Google’s no-refund policy with industry standards upheld by other major retailers. 

This decision underscores the limited consumer protections against gift card scams and highlights the importance of individual vigilance against fraud.

The court stated that consumers must exercise caution because scammers misuse gift cards, and companies are not responsible for preventing this.

With the recent ruling in favor of Google regarding gift card scams, we want to hear from you! Do you believe tech companies should take more responsibility in preventing fraud, or is it up to consumers to stay vigilant? Share your thoughts in the comments below.