Facebook faces class-action lawsuit over kids’ virtual currency purchases

Facebook faces class-action lawsuit over kids’ virtual currency purchases
Credit: Gil C / Shutterstock.com

A San Jose, California court has ruled that Facebook must face a nationwide class-action lawsuit over its refusal to provide refunds to parents whose children spent their money on the social network without permission, reports Reuters.

The trial for the April 2012 case is set for October 19. The class of plaintiffs is estimated to number several hundred thousand people. US District Judge Beth Labson Freeman said they could seek individual refunds and not a group settlement as refund amounts would vary from one case to another.

The lawsuit said that Facebook allowed children to use their parents’ credit cards to buy virtual currency for use in online games, and violated California law by refusing refunds under its ‘all sales are final’ policy.

Facebook believes the case lacks merit and said it will defend itself vigorously.

JR Parker, a lawyer for the plaintiffs, said, “The difference between Facebook and other businesses is that the company is on actual notice of a user’s age, but treats children the same as adult users when it comes to taking their money.”

Facebook to face U.S. class action over children’s online purchases [Reuters]

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