The store policy change will only take place in California for the next two years and is the result of a class action lawsuit brought by law firm Baron & Budd. Stores will be required to post signs warning customers that used games advertising free DLC may require additional fees to access that content.
Background of the Lawsuit
The class action lawsuit was initiated by Baron & Budd on behalf of consumers who felt misled by GameStop’s advertising practices. The primary issue was that used games were being sold with the promise of free downloadable content (DLC), but in reality, accessing this content often required additional fees. This practice was seen as deceptive, leading to the lawsuit and subsequent settlement.
“The in-store and online warnings are an important benefit under the settlement as well, because if GameStop discloses the truth to consumers, it is unlikely that they will be able to continue selling used copies of certain games for only $5 less than the price of a new copy,” the Baron & Budd attorneys said in a statement. “In fact, we already know that not long after the lawsuit was filed, GameStop lowered prices for used copies of many of the game titles identified in the lawsuit.”
Implications for Consumers and Retailers
This policy change has significant implications for both consumers and retailers. For consumers, the new signage will provide greater transparency, allowing them to make more informed purchasing decisions. No longer will they be caught off guard by additional fees required to access content they believed was included with their purchase.
For retailers, particularly GameStop, this change could impact their sales strategy. Used games have been a significant revenue stream for GameStop, often sold at a slight discount compared to new copies. With the new requirement to disclose potential additional fees, consumers may be less inclined to purchase used games, potentially leading to a decrease in sales.
Moreover, this policy change could set a precedent for other states and retailers. If the policy proves successful in California, other states may adopt similar regulations, leading to a broader shift in how used games are marketed and sold across the country.
Examples of Affected Games
Several popular game titles were identified in the lawsuit as being sold with misleading advertising regarding free DLC. For instance, games like “Mass Effect 2” and “Dragon Age: Origins” were often sold with the promise of free additional content, but accessing this content required an online pass or additional purchase. These practices not only frustrated consumers but also led to a lack of trust in the retailer.
In response to the lawsuit, GameStop has already taken steps to adjust their pricing strategy. Prices for used copies of many of the affected game titles have been lowered, making them more attractive to consumers despite the potential additional fees for DLC.
Future Considerations
As the policy change is implemented over the next two years, it will be important to monitor its impact on both consumer behavior and retailer practices. Will consumers become more cautious about purchasing used games, or will the increased transparency lead to greater trust and loyalty towards retailers like GameStop?
Additionally, this policy change could influence the broader gaming industry. Game developers and publishers may need to reconsider how they package and sell DLC, particularly for games that are likely to be resold. Greater transparency and fairer pricing strategies could become the norm, benefiting consumers and fostering a more trustworthy marketplace.
The store policy change in California is a significant step towards greater transparency in the sale of used games. It addresses consumer concerns about misleading advertising and sets a potential precedent for other states and retailers. As the policy is implemented, its impact on the gaming industry and consumer behavior will be closely watched, potentially leading to broader changes in how used games and DLC are marketed and sold.
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