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Microsoft Class Action Suit Outcome: Indifference

Ec|ipse writes points out that only about 7 percent of eligible Californians have decided to take Microsoft up on their settlement claims resulting from a class action suit in that state, writing "Microsoft contends that it's because the software giant is so popular with consumers." Eclipse excerpts from the press release on Yahoo! (from Settlement Recovery Center, a company that "helps businesses participate in class action settlements"): "With only two weeks remaining until the January 8 deadline, fewer than one million claims have been filed, out of some fourteen million eligible, for a share of the $1.1 billion fund arising out of the Microsoft class action settlement in California."

16 of 188 comments (clear)

  1. More Money for the ones that Do File? by The+Raven · · Score: 4, Interesting

    Does this mean the people who do bother to file get more money? Looks like they'll be getting about 1200 each at this point.

    --
    "I will trust Google to 'do no evil' until the founders no longer run it." Hello Alphabet.
    1. Re:More Money for the ones that Do File? by NetNifty · · Score: 4, Informative

      From the FAQ on microsoftcalsettlement.com:

      "Q: What benefits are available under the settlement?

      A: You will receive vouchers redeemable for cash after the purchase of a wide variety of software and computer hardware products. The vouchers are worth: $16 for each Microsoft Windows or MS-DOS license claimed; $29 for each Microsoft Office license claimed; $5 for each Microsoft Word, Home Essentials or Works Suite license claimed; and $26 for each Microsoft Excel license claimed.

      Q: What can the vouchers be used for?

      A: You can exchange your vouchers for cash by submitting proof of purchases you made after July 18, 2003 of the following computer products: Any desktop, laptop, or tablet computer made by any manufacturer for any operating system platform, or any of the following devices: printers, scanners, monitors, keyboards, or pointing devices (e.g. mouse, trackball). Qualifying software includes any non-custom software offered by any software vendor for use on a desktop, laptop or tablet computer. The qualifying computer hardware or software does not have to be a Microsoft product. After you submit proof of purchase to the Claims Administrator (either with your claim form or your voucher) a check will be sent to you for the amount of your purchase. The Claims Administrator will keep track of any remaining value on the voucher for your use in making future purchases. The claim form instructions and the voucher will explain the redemption procedure in more detail. "

  2. Where's the publicity? by IO+ERROR · · Score: 5, Insightful

    Could it be that so "few" people have filed a claim because of the lack of publicity surrounding the case? I don't exactly see front-page articles in the Los Angeles Times saying to go pick up your money.

    --
    How am I supposed to fit a pithy, relevant quote into 120 characters?
  3. Why botther by TheOldFart · · Score: 5, Insightful

    What percentage of those eligible are aware of the suit? Of those, how many bother to file it? The claimed 7% seems pretty high as it is. Why bother to file this (spending the time to look for the required paper work, giving away information you may not want to share) only to get a few bucks? It's not worth it. Class action law suits are never worth anything unless you are the attorneys filing it. Those are the only ones making any money out of all this (and absurd amounts at that).

  4. Cat got your tongue? by gulfan · · Score: 5, Funny

    Did it ever occur to them that every time we try signing up for the class action lawsuit, when we hit submit iexplorer.exe gives us a general protection fault? That seven percent must be the Mozilla users.

  5. Suprise? by confusion · · Score: 4, Informative
    Should this really be a suprise?
    Why do you think stores offer "mail-in rebates"? Because NO ONE SENDS THEM IN. Or at least a substantially small number as to still be wildly profitable.
    People like to think they're getting a good deal, but when it comes time to send in the paperwork, it doesn't happen.

    Jerry
    http://www.syslog.org/

  6. Why people don't file by Bruce+Perens · · Score: 4, Insightful
    Many of us have filed claim forms for class-action suits before. We get somewhere between $7 and $15 back. For most of us, it's simply not worth the time.

    Not that I'm a big consumer of Microsoft software in any case :-)

    Bruce

  7. Reminds me of Nintendo by beldraen · · Score: 5, Informative

    My state of Missouri decided to "get tough" with Nintendo's price fixing back in the late 1980's, I belive. I signed in for the class action suit and everything. Being young, I had the nievity to believe that this would change things. The state "won," and I got a certificate for $10 off my next game purchase. Wow, Missouri punished Nintendo with a game sale and state-wide advertisments.

    The only think that Microsoft didn't manage to do in this case was tie the deal to new purchases; otherwise, it's Microsoft laughing, not rumbles from Mt. St. Helens over there.

    --
    Bel, the mostly sane.. "Of course I can't see anything! I'm standing on the shoulders of idiots." -- Me
  8. Re:Stupid conclusion... by Mycroft_VIII · · Score: 4, Insightful

    Not to mention most people just don't feel like going through the hassle of claiming thier $3.95/free crap product that most class action suits get them. The only imedeate winners in class action suits are the lawyers who file them. The class is usually so large compared to the award that after the lawyers 1/4-1/3 is taken there is simply not enough to give any members of the class any significant payout.
    Now in theory consumers should still take a win as the offending company's loss should be enough to make future simular actions to potentially costly to risk. Unfortunately if that's not the case the companies will general treat it as 'the cost of doing bussiness'. If microsoft made >1.1Billion(actually it's a smaller number than that as they had that money for a while to use as capital) doing whatever they just got slapped with they still proffit from doing so, just not as much as they could have.
    I think class actions suits should have a minimum award if successfull of at least the amount the company made(income, NOT proffit, and in actuall cash, not products) off of it's improper actions. That and reduce the lawyers portion to say 5-10% and then not only might it work as intended, but the members of the class might actually get enough $ to make the hassle worth while.

    Mycroft

    --
    https://signup.leagueoflegends.com/?ref=4c3ed6600b6ea
  9. plum pudding. by reynhout · · Score: 5, Insightful

    Doesn't it seem like "exploiting customers by fraudulent means" should carry a heavier sentence than this?

    Microsoft has smart lawyers, and California's lawyers apparently rolled over and played dead, after making a good show of pursuing the case after most others had dropped it.

    But let's look at this...Microsoft's lawyers negotiated a settlement whereby:

    1. claimants have to produce and file an old receipt for purchase of software. (dropoff percentage upward of 75%, for sure)

    2. claimants receive a VOUCHER FOR FUTURE PURCHASES of computer stuff. (dropoff percentage at least 50%)

    3. claimants have to send all that paperwork to a claim management company to get their real money (dropoff percentage at least 30% -- would be much higher, but any customer who is this far along can be presumed to be motivated...)

    and lastly, the icing on the cake:

    4. two-thirds of unclaimed funds are donated, by Microsoft, to California schools in the form of computer hardware and software. The software, of course, has zero incremental cost to Microsoft except in lost sales to CA schools, but even more importantly...there is no donation better spent than a donation to kids. Get them early, get them for life.

    What ever happened to: "You screwed the plaintiffs over. Make full restitution now or go to jail."?

  10. Not indifference by Todd+Knarr · · Score: 4, Insightful

    I qualify under the settlement, but it wasn't satisfaction with Microsoft or simple indifference that made me not file for it. It's the settlement itself. What do I get from it? A paltry $5 off Word, for example, or $30 off the complete Office suite. That isn't even enough to offset the sales tax on those products. And I have to buy products from the same company being punished. They've abused their monopoly position, not to mention been the root cause of most of the virus headaches I have to deal with, and I should add to their profits? Why? If the settlement had involved MS having to give me a discount on competitor's products, I might've gone for it.

  11. The Microsoft Gap by JessLeah · · Score: 4, Interesting

    This just shows something most geeks are too naive to realize: There exists a huge gap between how geeks see MS and how Everyone Else(TM) sees MS. Call it the "Microsoft Gap".

    Had the 14 million people eligible to take a small slice of Microsoft's money all been geeks, I'd say at least 10 million would have claimed the money-- not because they needed it, but simply to hurt, and spite, MS. It would have been a little "death of a thousand cuts" for MS. Instead, we got a lackluster 1 million claiming their slice of the pie. Actually, it's a miracle that even that many people signed on.

    Most geeks are too naive to realize just how popular Microsoft really is among the general populace.

    To most geeks, Bill Gates is a wily scuzzbag who happened to be in the right place at the right time, applied his incredible business acumen, and now is in a position where his company can milk the general populace for a significant percentage of the cost of a new computer every single time they buy one. He's a robber baron who takes other companies'/peoples' good ideas, bastardizes them, and makes money on them, leaving the original creators to go bankrupt (at worst) or carve out tiny niche markets (at best). Or he just buys them out.

    However, to non-geeks (reminder: this covers 99+% of the US population), Bill Gates is a hero and a role model. He is someone that they aspire to be like, due to his incredible wealth and business acumen. The general Party Line among the unwashed masses seems to be "Well, Windows is what everyone runs, so it must be the best." This is rather akin to "every keyboard uses QWERTY, so QWERTY must be better than all other layouts" (e.g. Dvorak). It's also akin to "VHS beat out Beta, so VHS must be better in all ways." Nevertheless, this is how most people in the US feel on the matter.

    Until geeks understand how non-geeks think, no progress will be made in educating the public.

    1. Re:The Microsoft Gap by BHearsum · · Score: 4, Funny

      Mod parent up, he likes DVORAK

    2. Re:The Microsoft Gap by writermike · · Score: 4, Insightful

      However, to non-geeks (reminder: this covers 99+% of the US population), Bill Gates is a hero and a role model.

      Oh, I disagree completely. I talk to enough "non-geeks," as you call them, to know that the general consensus is that Windows is a necessary evil and that Bill Gates _has_ manipulated the system to his advantage and his competitors (and sometimes customers) disadvantage. To be sure, they don't react angrily to this, one fist in the air and the other handing $1500 to a sales person at the Apple store. They see Gates and Microsoft mainly as unfortunate but typical of any large company. They feel about as empowered to do anything as they do about complaining about the high costs of anything.

      --
      If Nalgene water bottles are outlawed, only outlaws will have Nalgene water bottles.
  12. Bad Karma by lousyd · · Score: 4, Interesting
    A Story:

    At my local (California) community college, one Monday in mid-December, four young men stood outside the cafeteria. They were trying to get people to sign a petition "to help breast cancer research". They were being a little abrasive; people who ignored them were assailed with loud comments like, "Oh, I guess you don't care about breast cancer."

    I walked up to them and asked what their petition was about. The "leader" explained that only 1% of people had claimed their refunds from Microsoft's antitrust settlement. He said that he and his companions were working for the antitrust lawyers, who would be paid on the basis of how many people actually collected this settlement money. If I signed certain paperwork, the $100 I was "entitled" to would go to breast cancer research, and I would get a tax deductible donation. "So have you bought any Microsoft products in the past?" he asked.

    "No."

    "Does your computer have any Microsoft stuff on it?"

    "No," I replied. "I use Linux."

    "Ohh, Lanux," he replied knowingly. He tried again: "Have you even used anything from Microsoft?" He reminded me I didn't need documentation.

    At that moment, a middle-aged woman walked briskly up to the table. "I do NOT appreciate what you said to my daughter!" she said.

    "What?"

    "She couldn't sign your petition--because she's only 16. And you said, 'Bad karma, I hope you get breast cancer'!"

    I left the table and walked over to a young woman standing a few yards away. "Did they actually say that?!" I asked.

    "Yes," she said, tears in her eyes. "I can't sign that, because I'm not old enough. And they said, 'Bad karma, I hope you get breast cancer.'"

    "That's terrible," I said. Her mom came back to us, snapped, "Let's go," and they did.

    I left for class. As I did, I heard a young-ish female student trying to score points with the petitioning males: in a catty, loud voice, she remarked, "Gosh, some people are soooo easily offended."

    --
    If aspiration is a virtue, achievement cannot be a vice.
  13. Nobody is getting ANY money! Hence nobody filed. by TheLittleJetson · · Score: 5, Insightful

    From the site: People and businesses that are covered by the settlement can get vouchers that may be redeemed for cash after buying eligible computer products.

    Yeah, that's right. You can get up to $100 in REBATES. You will not end up with a net gain of $100, you will just get $100 off some crap that you probably wouldn't have bought had you not been given some stupid voucher and felt the need to use it.

    Kudos to Microsoft for fooling the courts into such a meaningless penalty.