In case you were unaware, GameStop locations throughout allow their employees to "rent" the latest releases for up to four nights at a time. This policy, however, may have gotten the company into some very hot water.
According to an investigative piece by Kotaku, this practice of selling these used games as "new" could fall under the Federal Trade Commission's law against deceptive marketing or advertising.
They go on to say that the copies that have been rented out to employees are often mixed back in with the legitimately "new" copies being sold to customers.
To read the full story, head on over to Kotaku.
According to an investigative piece by Kotaku, this practice of selling these used games as "new" could fall under the Federal Trade Commission's law against deceptive marketing or advertising.
Kotaku contacted the FTC earlier today to determine if the practice, which sells games already played by employees at the new price, not the used price—used titles are typically priced about $5 cheaper than brand new versions—would be considered deceptive advertising or marketing. The FTC's Bureau of Consumer Protection is mandated to protect consumers against unfair or deceptive acts or practices in commerce. Violations of FTC restrictions are a violation of federal law, according to the commission.
"The Federal Trade Commission protects consumers from unfair or deceptive advertising and marketing practices, and we encourage any consumer with a complaint about a company's business practices to contact us," said FTC public affairs specialist Betsy Lordan.
Lordan said she was unable to confirm or deny the existence of any investigation that the commission is conducting. As a rule the FTC does not comment on the conduct of a particular business.
"The Federal Trade Commission protects consumers from unfair or deceptive advertising and marketing practices, and we encourage any consumer with a complaint about a company's business practices to contact us," said FTC public affairs specialist Betsy Lordan.
Lordan said she was unable to confirm or deny the existence of any investigation that the commission is conducting. As a rule the FTC does not comment on the conduct of a particular business.
They go on to say that the copies that have been rented out to employees are often mixed back in with the legitimately "new" copies being sold to customers.
When a shipment of video games initially arrives at a store, managers are told to "gut" several copies of the game, removing the disc or cartridge from the packaging so it can be displayed on the shelf without concern of theft, according to our sources.
The games are then placed in protective sleeves or cases under the counter. If a customer asks why the game is not sealed they are typically told the the game is a display copy. The game is still sold as new.
The games are then placed in protective sleeves or cases under the counter. If a customer asks why the game is not sealed they are typically told the the game is a display copy. The game is still sold as new.
To read the full story, head on over to Kotaku.