GameStop trade-in practices slammed: CA judge orders warnings for used games

The Northern California District Court has that GameStop stores througho🌞ut the 🐻state must place warning labels on used games with content locked behind Online Passes or similar schemes. The company will also pay restitution to purchasers of second-hand titles affected by such restrictions.

The news comes after Senior District Judge Thelton E. Henderson approved a settlement between the company and legal firm Baron & Budd, who brought a class-action suit against GameStop for its second-hand practices. B&B alleged that the company was buying up used games at low prices then marking-up the titles to within $5 of their original value &ndaꦍsh; even though Online Passes require customers to pay up to $15 to access some of the games💯' content (GameStop also sells Online Passes). B&B says this practice has allowed GameStop to make over $2 billion per year on used game sales alone, without paying royalties to the games' original publishers or developers.

Under the settlement, GameStop will now have to provide in-store and online warning labels for Online Pass-enabled second-hand games such as SSX and Mass Effect 3. The company will also issue rebates to buyers of such titles in checks and GameStop vouchers. Baron & Budd says it will post instructions for customers who feel they may be eligible for such a rebaꦕte on its .

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