Federal Judge Dismisses Google Gift Card Lawsuit

A federal judge has dismissed a class-action lawsuit against Google, which accused the company of illegally profiting from Google Play gift card scams by refusing to refund victims. The lawsuit, initiated by Judy May, claimed she lost $1,000 to scammers who convinced her to buy gift cards under false pretenses. US District Judge Beth Labson Freeman ruled that the loss was caused by scammers, not Google, and that the company was not liable for its standard 15% to 30% commission on gift card purchases. The judge also concluded that Google did not knowingly receive stolen funds or engage in unfair practices. Freeman allowed May the opportunity to refile her case, but dismissed her claim for triple damages permanently. FTC data shows that Google Play gift cards are a significant target for scammers, making up 20% of reported gift card scams from 2018 to 2021.