The office of New York Attorney General Andrew M. Cuomo is investigating several well-known retailers, including GameStop, for deceptive advertising practices. According to the office's announcement, GameStop and 21 other businesses are directing consumers to fraudulent discount programs where they unknowingly share credit card information with a third party. These third-party programs then place recurring charges on customers' accounts. "Well-known companies are tricking customers into accepting offers from third party vendors," said Cuomo, "which then siphon money from consumers' accounts."
Online movie ticket company Fandango has already agreed to stop the practice and pay $400,000 to a consumer redress fund. The Attorney General's office rightly warns that consumers should take care in reading all fine print when signing up for any kind of discount offer.
Are there any Joystiq readers out there that have run into this problem with GameStop? (You might want to check your credit card statement before you answer that.)
Update: For clarification, as some commenters have pointed out, the investigation applies to GameStop's online business, not its physical retail stores.
[Via GI.biz (account required)]
Reader Comments (65)
Posted: Feb 6th 2010 12:37AM BigBadBob113 said
I do a survey rewards program through Gamestop, but I dont think they ever asked for CC info when I applied.
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Posted: Feb 6th 2010 12:40AM MystileArmor said
I'm part of the same survey rewards program, and they do ask if you want to share your info with 3rd parties whenever you are eligible to receive a reward. There is no credit card info entered anywhere, but I'm pretty sure I get more junk mail in the snail mail because of it.
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Posted: Feb 6th 2010 1:04AM (Unverified) said
i recently bought a guitar hero at gamestop website and they do offer those stuff for example if accidentally click it, it will be charged to your account....... I recently saw the one of their thing that it's going to be have 20% off or $20 if you purchase the coupon accidentally
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Posted: Feb 6th 2010 1:49AM Morisato13 said
That entire comment confuses me. Guitar Hero? wtf? Guitar Hero is the friendster of rhythm based band games. haha, i'm just kidding. But seriously, with all those grammatical errors, it makes the entire comment hard to read.
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Posted: Feb 6th 2010 12:51AM MystileArmor said
The image reads "Power to the players", not "Powder".
Please go release whatever the hell you were doing with Jack White.
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Please go release whatever the hell you were doing with Jack White.
Posted: Feb 6th 2010 12:37AM Ezio Auditore da Firenze said
Nope.
Been dealing with Gamestop for many years now, and it's been a pleasant experience every single time.
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Been dealing with Gamestop for many years now, and it's been a pleasant experience every single time.
Posted: Feb 6th 2010 4:49AM (Unverified) said
Really? I stopped going to their stores because of the crappy service and outright rude employees. Not only that but the selection sucks. Or were you talking about online-only business?
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Posted: Feb 6th 2010 6:34AM LaughingTarget said
It's fine if you walk in, get what you want, and leave. They tend to have a good selection and convenient locations.
But since Amazon has been in the habit of offering new releases for 10% off with free shipping, I've been going there mostly.
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But since Amazon has been in the habit of offering new releases for 10% off with free shipping, I've been going there mostly.
Posted: Feb 6th 2010 12:13PM Alexisonfire said
Hey, maybe the guy lucked out and lives near a location with an awesome managers and staff that knows what the heck they are doing.
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Posted: Feb 6th 2010 2:20PM jeremy2020 said
I had great experiences for years at Babbages and even after the change to gamestop. Since I've moved I haven't found one store with anything, but employees who are really annoyed they have to work for a living and/or incredibly snarky.
Hopefully, they work on their employees giving me factually incorrect information, unsolicited opinions on games, or a snotty attitude because I interrupted their conversation. It's not my fault they work for minimum wage.
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Hopefully, they work on their employees giving me factually incorrect information, unsolicited opinions on games, or a snotty attitude because I interrupted their conversation. It's not my fault they work for minimum wage.
Posted: Feb 6th 2010 12:52PM Crimsic said
I don't get all the hate for Gamestop, I live in South Texas where service usually sucks, but the Gamestop I go to has always been extremely well maintained and full of friendly employees. Yesterday I went to pick up Mass Effect 2, and put 10$ down on Bad Company 2. The guy at the register told me I could download the demo online and I told him I already did. He proceeded to ask me if it was any good, and that he didn't care too much for the first game. We had a good 5 minute conversation, nothing rude or any bad service.
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Posted: Feb 6th 2010 3:47PM killerjuice said
The GameStop near my house is great. Every time I go there, the staff is friendly and social. I always have a quick conversation with them about games and they honestly tell me what games they think are good and cheap. Most of the time, there's only two or three customers in the store, so it's quite personal. I always hear online rants about GS and never understand them.
I guess I'm just lucky to have one of the few good gamestops :p
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I guess I'm just lucky to have one of the few good gamestops :p
Posted: Feb 7th 2010 3:31PM (Unverified) said
Well, Ezio. You general douchebag attitude fits right in with Gamestop so no one is surprised.
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Posted: Feb 6th 2010 12:46AM Lord Foortwenti said
I wonder if they aren't talking about their "Edge" program, but I'm pretty sure that is run by GameStop but I could be wrong. I know that when you join the program you pay like 20 beans, and you get a year subscription to Game Informer (which I know is run by GameStop) and 10% off used games for a year, as well as some other sales and such.
The only other thing I could think of is their additional Warranty? Those are usually run by 3rd party companies that specialize in ripping people off...oh, I mean selling warranties. I also am pretty sure that such things aren't legal everywhere and that some retailers have gotten in trouble b/c of their addition warranty selling.
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The only other thing I could think of is their additional Warranty? Those are usually run by 3rd party companies that specialize in ripping people off...oh, I mean selling warranties. I also am pretty sure that such things aren't legal everywhere and that some retailers have gotten in trouble b/c of their addition warranty selling.
Posted: Feb 6th 2010 1:03AM MLC said
The extended warranties are handled by the actual GS stores. If you're buying a new system of any kind (except 360s cause of their 3 year warranties), GS offers to cover the system after the manufacture warranty expires. On Used systems we cover the system for 1 year but there are certain states such as NC that it's actual a 2 year warranty.
Oh yeah, when/if the customer's system is defective, we just exchange it out for another system. That's it. There's no big conspiracy. Just a simple exchange.
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Oh yeah, when/if the customer's system is defective, we just exchange it out for another system. That's it. There's no big conspiracy. Just a simple exchange.
Posted: Feb 6th 2010 1:56AM Morisato13 said
Did you just admit to working at GameStop?
How do I know what you're saying is true and not some excuse to cover some big conspiracy? I'm watching you Batman... ¬_¬
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How do I know what you're saying is true and not some excuse to cover some big conspiracy? I'm watching you Batman... ¬_¬
Posted: Feb 6th 2010 4:09AM Iroquois said
I work at GameStop too.
Card info isn't required for the Edge card and the in-store warranties are GS only like the other guy said. In fact, you could walk into a GS store and get anything there without even having a credit/debit card.
I think gamestop.com offers and stuff are what's under scrutiny here. Not in-store purchases.
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Card info isn't required for the Edge card and the in-store warranties are GS only like the other guy said. In fact, you could walk into a GS store and get anything there without even having a credit/debit card.
I think gamestop.com offers and stuff are what's under scrutiny here. Not in-store purchases.
Posted: Feb 6th 2010 4:13AM TheDarkWayne said
This man is an impostor! I'm The God damn Batman!
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Posted: Feb 6th 2010 6:37AM LaughingTarget said
GameStop doesn't administer the warranty program itself in every State. In Florida, for instance, a law exists that requires GameStop to use an outside warranty service for consoles.
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Posted: Feb 6th 2010 12:45AM (Unverified) said
I got signed up to game informer without my knowledge by just preordering a game online!
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Posted: Feb 6th 2010 12:48AM Alan Smithee said
This guy is so pathetic. He's abusing his power, and I hope the moron gets recalled. So many frivolous lawsuits.
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Posted: Feb 6th 2010 12:53AM MLC said
I actually work @ GS and we don't do any of what was stated above. We just buy and sell video games. We have our Edge/ Used card membership but that always expires after 1 year and it does NOT involve any CC info unless the consumer is buying the annual membership with their card. There's no reason for any1 to be asked their CC info unless it's because the assiocate needs the CC itself for validation with purchases.
I may get downvoted cause I work @ GS but NOT all the people that work @ GS are dicks. Some of us are just fans of video games that happily sell them for a living.
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I may get downvoted cause I work @ GS but NOT all the people that work @ GS are dicks. Some of us are just fans of video games that happily sell them for a living.
Posted: Feb 6th 2010 12:56AM The Aquacharger said
They're not talking about in stores, they're talking about online. If you order online at the end of your order you can be entered in a sweepstake to win a random prize through a third party where they ask for your credit card info.
I think right now it's $500 prize. When you buy something online through them look at that little advertisement there. If I can find a screenshot I took of my last order I'd show you.
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I think right now it's $500 prize. When you buy something online through them look at that little advertisement there. If I can find a screenshot I took of my last order I'd show you.
Posted: Feb 6th 2010 1:35AM (Unverified) said
i work at GS too. Again, as Aquacharger said, this is about what the website does, not the stores.
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Posted: Feb 6th 2010 1:11AM The Aquacharger said
Well here we had a store overcharging cards for some reason, and they had to close down due to improper buisness practices. But that was a few years ago.
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Posted: Feb 6th 2010 9:05AM Punkrawk Bbob said
No offense Batman, but I think if there was something fraudulent going on it'd be above the retail level. Something that the managers and 3rd key wouldn't even know about more than likely. At some point along the corporate chain they realized an extra way to make money, and if they could hide it from most of the company it would be relatively secret / plausible. Because honestly, if associates all the way down on the grunt level knew about it, how long do you think it'd be kept a secret? Maybe a week? Aside from disgruntled workers voicing it online, friends would tell outside company friends in passing, and anyone fired or quitting would be a liability for for potentially exposing a very expensive lawsuit.
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Posted: Feb 6th 2010 12:58AM (Unverified) said
***Cuomo’s investigation has found that when consumers shop online from familiar retailers, they are often presented with a discount or cash-back incentive offer as they complete their purchase. When consumers click on the discount or incentive banner, they are unknowingly directed to a membership program seller’s Web page that is separate from the online retailer’s site. The consumer is then instructed through large, colorful print and voice prompts to accept the discount or incentive.
Joystiq, you should have maybe added that part...it has nothing to do with the actual retail aspect of the store.
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Joystiq, you should have maybe added that part...it has nothing to do with the actual retail aspect of the store.
Posted: Feb 6th 2010 1:04AM Padilla7921 said
I said this when Andrew Cuomo opened up an investigation into Intel's anticompetitive practices, and I'll say it again here: when NY Attorney General Andrew Cuomo goes after you, you're screwed. Big time. This guy means business. He dishes out justice like we dish out candy on Halloween, and his primary form of entertainment is watching bad guys go to jail. In fact, he does so in HD, which is why the technology was developed in the first place.
GameStop, meet your worst nightmare.
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GameStop, meet your worst nightmare.
Posted: Feb 6th 2010 1:07PM wcarnation said
Trade in 3 copies of Phoenix Wright now and get the GameStop Court Documents half off
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Posted: Feb 6th 2010 2:20PM jeremy2020 said
Their worst nightmare is indeed, a politician on a tear looking to run for higher office.
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Posted: Feb 6th 2010 5:48PM Padilla7921 said
He's not a politician. Not yet, at least. If I could, I'd vote for him, but he's doing so much as the AG, why would he change?
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Posted: Feb 9th 2010 3:11PM (Unverified) said
@Alex: AG is a political position. It can be used as a VERY political position, but most AGs try to stay apolitical in their pursuit of justice. As for Cuomo, he's possibly running for NY state governor (as far as I know, he's going to primary (and win) Patterson), so he is indeed looking to make a splash. This is not to say that he's a bad prosecutor/person, just that in the world of politics, nearly everything is done with political aspiration as a background.
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Posted: Feb 6th 2010 1:06AM The Aquacharger said
I think this might explain all those deals on their website. I was wondering why every day a new deal was coming up to give you anywhere from free overnight shipping to $20 off a game 59.99 or over.
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Posted: Feb 6th 2010 1:15AM rahmenxnoodles69 said
Whether this is true or not I already really hate GameStop..
Twice I have pre-ordered games and not received my bonus because they "ran out" even when I get there early and nobody else is there.
And the used game market is a bunch of bullshit. I've sold games that are very new titles (in perfect condition) for a third of what I bought them for (if I'm lucky) and then GS turns around and sells them to someone else for like $50-55.
I'll gladly buy a new game full price, because the money goes to the people who worked hard to make it. But when GS buys games for dirt and re-sells them they make something like 300% profit.. and for what? For absolutely nothing.
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Twice I have pre-ordered games and not received my bonus because they "ran out" even when I get there early and nobody else is there.
And the used game market is a bunch of bullshit. I've sold games that are very new titles (in perfect condition) for a third of what I bought them for (if I'm lucky) and then GS turns around and sells them to someone else for like $50-55.
I'll gladly buy a new game full price, because the money goes to the people who worked hard to make it. But when GS buys games for dirt and re-sells them they make something like 300% profit.. and for what? For absolutely nothing.
Posted: Feb 6th 2010 1:20AM MystileArmor said
I'm sorry they held you at gunpoint, forcing you to sell your games, instead of putting them on eBay or sell them to any of your friends.
Also, I don't know about you, but I always make sure I get my pre-order bonus whenever I pre-order, instead of picking the game up.
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Also, I don't know about you, but I always make sure I get my pre-order bonus whenever I pre-order, instead of picking the game up.
Posted: Feb 6th 2010 9:12AM Punkrawk Bbob said
Ya... Rahmen, you sound kind of like a naive idiot pushover. If you preorder a game and they dont have the bonus, just take your money back and go purchase it somewhere else that does have it. Also, if you don't like them reselling your games then don't trade in there. It's not like there aren't other options. You say you like to support the company that makes the games, but you reselling to anyone means you're keeping that person from buying a new copy that supports the devs. The only difference is you make the profit as opposed to gamestop.
I'm not much of a supporter of gamestop, but I do realize their buy for $20, sell for $55 practice is kind of required. How many used copies of games do you think never get resold? I'm sure there's a ton of crap games you've traded in that they just eat the loss on. So instead of just buying back hot titles, they buy back everything. The trade off is having to make up the difference in the titles that actually move. No one goes into gamestop wanting to buy a 2 year old game. Just isn't how it works. Unfortunately that's 70% of their used inventory.
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I'm not much of a supporter of gamestop, but I do realize their buy for $20, sell for $55 practice is kind of required. How many used copies of games do you think never get resold? I'm sure there's a ton of crap games you've traded in that they just eat the loss on. So instead of just buying back hot titles, they buy back everything. The trade off is having to make up the difference in the titles that actually move. No one goes into gamestop wanting to buy a 2 year old game. Just isn't how it works. Unfortunately that's 70% of their used inventory.
Posted: Feb 6th 2010 11:48PM rahmenxnoodles69 said
@MystileArmor
Yeah that's why I don't do that anymore. Hence "I HAVE sold" meaning "I HAVE traded in games there A FEW TIMES but obviously NOT ANYMORE".
Also, I didn't get those pre-order bonuses when I was there to pre-order. I don't know if that is always the case but I made sure those times that I had to be there when I came to pick it up. Don't be ignorant, your points are invalid.
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Yeah that's why I don't do that anymore. Hence "I HAVE sold" meaning "I HAVE traded in games there A FEW TIMES but obviously NOT ANYMORE".
Also, I didn't get those pre-order bonuses when I was there to pre-order. I don't know if that is always the case but I made sure those times that I had to be there when I came to pick it up. Don't be ignorant, your points are invalid.
Posted: Feb 6th 2010 11:54PM rahmenxnoodles69 said
@Punkrawk Bbob
Once again, I didn't make the same mistake more than a few times with the whole GS trade-in thing. I usually either keep games or give/sell them to people personally.
And seriously don't give me that lame "oh well they have to take the loss when you trade in games nobody wants" THAT IS WHY THEY HAVE A PRICE INDEX BASED UPON THE POTENTIAL TO BE SOLD, IF I SOLD NCAA 04 FOR PS2 I WOULD GET 50 CENTS. YEAH HUGE LOSS FOR THEM.
Also like I said, I made absolutely sure they wouldn't give me the bonus until pick-up. When I came to get it and they didn't have the bonus what am I supposed to do? Stab the cashier? If they don't have the bonus it doesn't matter how much I complain (and you think I didn't complain?) I was not getting it. And while I was already there and I already had the game paid for I'm not going to ask for my money back over something so stupid. It isn't immensely important I just hate when they heavily advertise those bonuses and then don't even have any. It's inexcusably annoying, and it's why I don't buy from GS anymore.
So I'm a pushover for not taking the clerk hostage and demanding a download code as ransom? Yeah I'm sure a real tough guy like you would've done that right? Wow..
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Once again, I didn't make the same mistake more than a few times with the whole GS trade-in thing. I usually either keep games or give/sell them to people personally.
And seriously don't give me that lame "oh well they have to take the loss when you trade in games nobody wants" THAT IS WHY THEY HAVE A PRICE INDEX BASED UPON THE POTENTIAL TO BE SOLD, IF I SOLD NCAA 04 FOR PS2 I WOULD GET 50 CENTS. YEAH HUGE LOSS FOR THEM.
Also like I said, I made absolutely sure they wouldn't give me the bonus until pick-up. When I came to get it and they didn't have the bonus what am I supposed to do? Stab the cashier? If they don't have the bonus it doesn't matter how much I complain (and you think I didn't complain?) I was not getting it. And while I was already there and I already had the game paid for I'm not going to ask for my money back over something so stupid. It isn't immensely important I just hate when they heavily advertise those bonuses and then don't even have any. It's inexcusably annoying, and it's why I don't buy from GS anymore.
So I'm a pushover for not taking the clerk hostage and demanding a download code as ransom? Yeah I'm sure a real tough guy like you would've done that right? Wow..
Posted: Feb 7th 2010 5:39PM rahmenxnoodles69 said
@Jerry
Yes I realize this but I still think trade-in's should be worth more, at least when trading something in on another game. I just find the system flawed overall and I don't take part in it.
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Yes I realize this but I still think trade-in's should be worth more, at least when trading something in on another game. I just find the system flawed overall and I don't take part in it.
Posted: Feb 6th 2010 1:16AM Jerk Face said
I never had an issue as mentioned above. I did receive an email from Gamestop about their partnership with an online survey company called e-rewards. I actually gave it a shot and took a crap ton of surveys to earn enough credit; and when I did cash in for the $25 Gamestop gift card it totally came in the mail and cashed in at the store without issue or problems. I never had to enter any card info or anything along those lines - I just answered the surveys and built up my rewards until I had enough to get what I wanted.
So at least THAT particular 3rd party deal they hooked up with is totally legit. Don't know about this other more shady deal!
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So at least THAT particular 3rd party deal they hooked up with is totally legit. Don't know about this other more shady deal!
Posted: Feb 6th 2010 1:42AM The Aquacharger said
Or how about now if you buy a TV from Best Buy they take your old TV and recycle it while not charging you!
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