HSBC Merchant Best Buy Hit With Racketeering Suit
The U.S. Supreme Court on Monday rejected an appeal from Microsoft Corp. and a unit of Best Buy Co., ending a bid by the two companies to stop a class-action lawsuit over a joint marketing campaign for MSN Internet Access service.
The companies had appealed a lower court ruling that allowed them to be sued under federal racketeering laws (RICO), a development that could open them up to tripled damages if they were to lose the class-action case.
The lawsuit challenges a part of a $200 million marketing agreement between the companies where, among other things, Best Buy agreed to sign up customers for a trial membership in the Microsoft Internet service, allegedly without obtaining their prior consent.
Consumer advocates claimed Best Buy and HSBC Finance should be investigated under RICO when customers make a payment on time but HSBC claims it was late, passing a portion of the overchage to Best Buy as “ongoing compensation.”
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[…] HSBC Merchant Best Buy Hit With Racketeering Suit The U.S. Supreme Court on Monday rejected an appeal from Microsoft Corp. and a unit of Best Buy Co., ending a bid by the two companies to stop a class-action lawsuit over a joint marketing campaign for MSN Internet Access service. The companies had appealed a lower court ruling that allowed them to … […]
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