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Racketeering Trial of MS and Best Buy Can Proceed

Posted by kdawson on from the knowing-guys-who-know-guys dept.

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.

9 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.
    1. Re:Organized crime? by MichaelKaiserProScri · · Score: 5, Informative

      The deal between AT&T and Apple sucks, but is legal, because it is disclosed ahead of time. The deal between MS and Best Buy is illegal because it was not disclosed.

    2. Re:Organized crime? by Anonymous Coward · · Score: 5, Insightful

      A long time ago, prosecutors realized that organized crime tried to use legitimate business faces to sustain and grow itself. When various business interests, controlled by a common hand, unite to box their victim into an alley where they can be persuaded to "donate" their money to a cause also controlled by those same business interests, that's a serious threat to civilization. If each participant could only be prosecuted for disturbing the peace, the mugging would continue unchecked.

      The real shame is that private citizens have to leverage civil courts for relief. If their are 100 times as many civil RICO actions as there are criminal RICO actions, it is most likely because prosecutors are not doing their jobs. A mugging is still a crime. Just because it is performed by people in suits doesn't make it less of a crime. And when the suit in the corporate office is orchestrating the systemic muggings of all their customers... it is a crime. An organized crime.

    3. Re:Organized crime? by Smidge204 · · Score: 5, Insightful

      So even if we stick solely with your definition, the only difference in their behavior is the use of violence. If you replace the threat of physical violence with a threat of legal and financial ruin, they are virtually identical.

      Use violence to coerce people? Organized crime!

      Use lawyers to coerce people? Just shrewd business!

      I think you watch too many movies, personally. The coercion part is what makes it "organized crime", not the means and methods.
      =Smidge=

    4. Re:Organized crime? by Bacon+Bits · · Score: 5, Informative

      Suing absolutely can be illegal (or, if you prefer, legally actionable). It's known as barratry, abuse of process, vexatious litigation, or frivolous litigation.

      If you bring a case against someone solely to punish them with legal proceedings, that's often illegal. Even if it's not, it gets lawyers disbarred.

      --
      The road to tyranny has always been paved with claims of necessity.
  2. Re:Important to note by ejdmoo · · Score: 5, Informative

    Replying to my own post, check this post from the Consumerist out...

    I'm almost ashamed to admit this, but it did happen for the longest time. Ever get signed for something at Best Buy, but you swear that you never signed up for anything. Here is the trick that is used, and that I was taught from a Best Buy manager. When a customer would refuse either AOL, MSN, NetZero, magazine offers, or whatever other D-SUB we had, we'd sign you up anyway. You know those Best Buy gift cards that are all over the store? Well those are just American Express cards, with a Best Buy face. So, we'd go through the motions of selecting your address but when it asked for your credit card, we'd swipe through a gift card. Since it was an American Express card in reality, the system took it and you were signed up. The customer had to deal with the late fees because they couldn't charge the credit card the provided. Not our problem.

  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. Re:Important to note by vux984 · · Score: 5, Informative

    I thought gift cards generally were completely useless unless activated, to make stealing them pointless? Is this a recent thing, or are the Best Buy cards not like this, or something?

    Yes, they were completely useless, insofar as that nothing can be charged against them. But they still have a number, and a functioning mag-strip. And if the system just requires a mag strip swipe with a valid number. (and by valid, we only mean "properly formatted"), then its good to go.

    Nothing is actually ever attempted to be "charged" or "authorized" against the card number until the 6 month trial is up, at which point it doesn't work, of course, because the card is useless.

  5. No comment? by ealar+dlanvuli · · Score: 5, Insightful

    "Microsoft does not comment about pending litigation?"

    This means Balmer's linux patent threats contain no litigation that is pending?

    --
    I live in a giant bucket.