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Federal appeals court rules Microsoft must answer racketeering claims over Best Buy deal

[JURIST] The US Ninth Circuit Court of Appeals [official website] ruled [opinion, PDF] Friday that a racketeering lawsuit against Microsoft Corporation [corporate website] launched in respect of an alleged agreement with retailer Best Buy [corporate website] can proceed, overturning a lower court ruling. Consumers claimed that in the context of a promotional deal, Microsoft had arranged with Best Buy that when Best Buy customers bought certain products, its salespeople would activate trial subscriptions to Microsoft internet services that, barring cancellation, would be renewed and charged to customers' credit cards. Customers were allegedly not told of the trial activations, although Microsoft insists they were advised. Microsoft later ended the Best Buy free trial program and offered refunds to dissatisfied customers.

The case now has been remanded to federal district court for trial. Bloomberg has more.

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Paper Chase is JURIST's real-time legal news service, powered by a team of 30 law student reporters and editors led by law professor Bernard Hibbitts at the University of Pittsburgh School of Law. As an educational service, Paper Chase is dedicated to presenting important legal news and materials rapidly, objectively and intelligibly in an accessible format.

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