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Racketeering Trial of MS and Best Buy Can Proceed

mcgrew (sm62704) writes with news that the Supreme Court has rejected an appeal by Microsoft and a unit of Best Buy to dismiss a lawsuit alleging violation of racketeering laws. This means the class-action complaint can go to trial. The case was filed in civil court and the companies, with the US Chamber of Commerce behind them, wanted the Supreme Court to put the brakes on the expanding use of RICO laws in civil filings. The Racketeer Influenced and Corrupt Organizations Act was designed to fight organized crime, but in recent years more than 100 times as many civil as federal RICO cases have been filed.

4 of 179 comments (clear)

  1. Organized crime? by myowntrueself · · Score: 5, Interesting

    So how, exactly, is this *not* organized crime?

    --
    In the free world the media isn't government run; the government is media run.
  2. Isn't this what we always complain about? by speaker+of+the+truth · · Score: 4, Interesting

    Isn't creating a law with the purpose of using it for one thing (going after commercial pirates) and then using it for something else (going after people who pirate for no money and instead personal uses) something we hate here at slashdot? And yet we have another clear example of it and hail it as if it were the best thing to ever happen, simply by misappropriating the term "organized crime." Isn't that something else we complain about as well (after pirates don't steal, they simply infringe).

    I guess the end truly does justify the means. At least here at /.

    --
    Using openSUSE instead of Windows since 9th of October, 2007 and liking it.
  3. i call bullshit on you by bennini · · Score: 5, Interesting

    Sounds like stupid college students working at Best Buy getting a monthly prize for signing people up for MSN. Doesn't sound like a giant corporate scam.

    As a previous employee at Circuit City, I can attest that this sort of thing is generally encouraged by store managers. Most of the time employees of these sorts of stores (Best Buy and CC) no longer make commision on sales of extended warranties and the ilk (they did in the past) but they are still strongly pushed to get people to sign up for these crappy deals. Now, you may never be directly told "get X people to sign up each month or you will be fired", but you will definitely notice when your hours get cut or your manager starts breathing down your neck each time you're talking to a customer.

    I disagree with your comment about this not being a "giant corporate scam". The top execs at companies like CC and BestBuy are the ones that design, implement and sign the contracts that enable these worthless "offers." They do so strictly because of money and they in turn push their demands down onto regional managers which then breath down the store manager's throats. Its one big chain reaction of pressure to sell what isn't needed and in the end the customer suffers. The employees that push this crap don't give a shit if the person actually needs it or not.

    I remember some of my buddies laughing about how they tricked old grandmas into buying all sorts of useless, overpriced peripherals for digital cameras. Their managers loved it cuz it helped them reach their sales target (and in turn get bigger bonuses).
     
    Its a huge scam. The companies involved know it, the employees of the companies know it...and finally, now, the customers are starting to know it as well.

    ps. i simply installed stereos in peoples cars so i never had to deal with managers' bullshit, thank god..but it was quite sad watching it go down.
  4. They caught ne with this one by aegl · · Score: 4, Interesting
    I bought a 19" LCD monitor from Best Buy while they were running this scam and they signed me up for msn.com just the way the article says. No disclosure to me beyond telling me that there was a free 6 month subscription CD in the box. I recycled the CD as I had no interest in the MSN subscription. Six months later the first monthly charge appeared on my credit card bill.

    I called MSN and asked what was going on. They said that I'd signed up at Best Buy. I said "oh no I didn't". After a couple of iterations of this the guy on the phone agreed to cancel the subscription and refund my money.

    Assuming the lawyers take $30M of the $100M judgement, and assuming that there were 100,000 customers (complete random guess ... the article only says "thousands of customers"), then my share ought to be $700. That would actually be quite cool. But I bet that I'll just end up with a $10 coupon good for discounts on Microsoft Vista :-(