Court: United States Circuit Court for the Northern District of California
Case No.: 3:09-CV-05443-EDL

Wexler Wallace this nationwide class action lawsuit against Zynga Game Network, Inc. (“Zynga”) in the Northern District of California, seeking damages for consumers lured into subscribing for goods and services they never wanted, while attempting to buy “virtual currency” for use in social games such as Mafia Wars and Farmville.

Zynga develops and produces popular social networking games, played on Facebook and MySpace, such as Mafia Wars, YoVille! and FarmVille. Consumers can obtain “virtual currency” for use in these games by, among other things, responding to online advertisements or offers.  However, by responding to the online advertisements and offers, consumers are subscribed to goods and services for which they are charged recurring fees without their knowledge or meaningful consent.  Consumers who finally discover the charges are unable to cancel their subscriptions or face significant obstacles in canceling and obtaining a refund.

For example, a consumer may obtain virtual currency by responding to an online “IQ test,” the results of which are provided to the consumer via cell phone text message. By responding and entering his or her cell phone number, the consumer unwittingly becomes subscribed to a text messaging service for which he or she is charged monthly fees through the cell phone bill. The advertisements or offers provide little or no information about these charges or that any charges will be incurred. Indeed, Zynga represents that the goods and services offered to consumers are “risk free.”

Facebook, the largest social networking site in the world, participates in this unlawful marketing scheme by keeping a substantial portion of the revenue generated from Zynga’s misleading advertisements. Furthermore, Facebook promotes Zynga’s games to Facebook users despite being aware of the false and misleading nature of Zynga’s advertisements and special offers.

To learn more about the case and view the Complaint, click here.

If you believe that you have paid any improperly assessed fee by responding to an offer for “virtual currency,” or would like more information about this action, please contact us or complete our Online Form.

Status
This case is pending before the Honorable Saundra B. Armstrong.  On November 3, 2010, Judge Armstrong denied Defendants’ motion to dismiss in its entirety.  To view a copy of the Order, click here. Defendants recently filed a motion to compel arbitration, which is set to be heard on July 26, 2011.