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Blizzard Facing Lawsuit Over Forceful Authenticator Purchases

By - Source: Courthouse News

A class action lawsuit claims that Blizzard is making millions from customers because it's not properly securing sensitive personal information.

Courthouse News reports that Blizzard Entertainment and parent company Acitivsion Blizzard are facing a class action lawsuit that claims the Diablo 3 developer makes millions by "deceptively and unfairly" charging customers for an after-sale security product.

Lead plaintiff Benjamin Bell, one of two listed in the filing, is seeking class damages for consumer fraud, unjust enrichment, negligence, breach of contract and bailment. The class action lawsuit is represented by Hank Bates with Carney Williams Bates Pulliam & Bowman, of Little Rock, Arkansas.

The lawsuit claims that Blizzard has been the subject of repeated security breaches including the Battle.net hack in August and those experienced in May. Instead of securing personal information on its servers, Blizzard is reportedly forcing customers to purchase an authenticator "in order to have even minimal protection for their sensitive personal, private, and financial data."

The lawsuit specifically names the Diablo and StarCraft franchises as two products that are affected by Blizzard's lack of proper security.

"Defendants negligently, deliberately, and/or recklessly fail to ensure that adequate, reasonable procedures safeguard the private information stored on this website. As a result of these acts, the private information of plaintiffs and class members has been compromised and/or stolen since at least 2007," the complaint states.

"Most recently, on or about May 19, 2012, reports proliferated that class members’ Battle.net accounts had suffered a security breach (‘hack’) at the hands of unknown parties (‘hackers’), and on or about August 4, 2012, hackers massively breached Battle.net’s security and acquired the private information of all of defendants’ customers in the United States, as well as the remainder of North America, Latin America, Australia, New Zealand, and Southeast Asia," the complaint adds.

The lawsuit states that Activision Blizzard has earned $26 million USD from selling the $6.40 physical Authenticator product. It also alleges that Blizzard forces users to create an online account, and is leaving it up to those customers to tighten security on their devices rather than tighten security on Blizzard's end. Even more, the suit accuses Blizzard of failing to take the legally required steps to alert customers about the May 19 hacking incident.

Bell is asking the court to not only reward class damages, but seeks an injunction to bar the defendants from adding undisclosed costs after the initial software purchase. Bell is also asking the court to ban the requirement for establishing Battle.net accounts.

Note: Blizzard customers can download a free Authenticator app for Android and iOS devices. The lawsuit is addressing the various physical keychain versions that are available on Blizzard's store here.

 

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There are 107 Comments.
Top Comments
  • 18
    crisan_tiberiu , November 11, 2012 2:19 PM
    They could have bundeled the authenticator with the game... not that hard ?!
  • 18
    ben850 , November 11, 2012 2:24 PM
    If you have a smart phone it's free.. this hardly sounds like AV/Blizz is trying to trick anyone.
  • 20
    therabiddeer , November 11, 2012 2:43 PM
    1) It is free to use if you have a smart phone
    2) Blizzard loses money on each sale because they sell it AT COST and ship for free
    3) Blizzard uses Vasco Digipass units, which at retail cost €12.99 (Blizzard most likely gets a big discount for their bulk purchases)
    http://shop.vasco.com/
  • 15
    anonymous@guest , November 11, 2012 2:49 PM
    Blizzard doesn't make money selling authenticators your paying the shipping and handling fee, and if your so broke to not be able to get one to up your own security, while your paying 60+ dollars for games on a single account non the less a 15 a month for the game, the decision is yours, they offer other alternatives free of charge, Mobile authentication, and even Dial in authentication that costs you no money at all.
    So bllue think before you accuse blindly.
  • 10
    boyabunda , November 11, 2012 2:53 PM
    therabiddeer1) It is free to use if you have a smart phone2) Blizzard loses money on each sale because they sell it AT COST and ship for free3) Blizzard uses Vasco Digipass units, which at retail cost €12.99 (Blizzard most likely gets a big discount for their bulk purchases)http://shop.vasco.com/


    You really believe Activision Blizzard loses money on each sale of authenticators? LOL
  • 10
    anonymous@guest , November 11, 2012 3:09 PM
    Blizzard's games have certainly gone downhill since 2009 but their customer service has pretty much remained solid. Almost every single instance of someone being "hacked" is a result of some idiot doing the wrong thing. Back in 2004-7, it was people clicking on keyloggers (a website with a virus that is downloaded to the user's computer to relay account info), and now since the authenticator was released in 2008 to prevent keylogging, it's people clicking on fake password reset emails and such and willingly giving away their information. Blizzard supplied the authenticator because it thought that it would reduce the headaches caused by people whining about how they got "hacked," not to intentionally cripple their own account security in order to make a couple bucks on the side, especially since WoW by itself is a multi billion dollar franchise and selling off customer loyalty for a measly 26 million, which would be over 4 years if this figure is from the introduction of authenticators onward, isn't very lucrative when factoring in the loss of customers.
  • 10
    therabiddeer , November 11, 2012 3:47 PM
    wildkittenIf Blizzard loses money on the physical dongle, how can they report a PROFIT of $26million? You do realize reporting a profit means they MADE money, not lost money.

    Easy, THEY HAVENT. The $26 million figure comes from the fact that 40% of users have one. Given the fact that there are roughly 10 million WoW players that is how you arrive at the $26 million figure. 4 million x 6.50 = 26 mil
    http://www.geekosystem.com/blizzard-26-million-security-authenticators/
    Unless they figured out a way to buy the devices for free from vasco (which as I stated, charges €12.99 for one) and ship them for free... they did not make $26 mil. Hell, even with a staggering $2 profit on each sale, they would have to sell 13 million of them (or every WoW player and a VAST majority of D3 players). Which is not likely given the fact that we are told only 40% of WoW players have them!
Other Comments
  • 20
    therabiddeer , November 11, 2012 2:43 PM
    1) It is free to use if you have a smart phone
    2) Blizzard loses money on each sale because they sell it AT COST and ship for free
    3) Blizzard uses Vasco Digipass units, which at retail cost €12.99 (Blizzard most likely gets a big discount for their bulk purchases)
    http://shop.vasco.com/
  • 18
    ben850 , November 11, 2012 2:24 PM
    If you have a smart phone it's free.. this hardly sounds like AV/Blizz is trying to trick anyone.
  • 18
    crisan_tiberiu , November 11, 2012 2:19 PM
    They could have bundeled the authenticator with the game... not that hard ?!
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