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Gamestop ordered to pay $500,000 for violating consumer protection laws

February 18, 2019

RIVERSIDE COUNTY, Calif – Riverside County District Attorney Mike Hestrin announced that a judge has ordered GameStop Inc., a Texas-based video game and consumer electronics company, to pay $500,000 in civil penalties and costs for violations of consumer protection laws. The stipulated judgment in the civil law enforcement action filed in Riverside County Superior Court is the result of an investigation and subsequent litigation related to unlawful business practices by GameStop.

The terms of the stipulated judgment include a permanent injunction, requiring GameStop to fully comply with California’s secondhand dealer laws.

As part of its business, GameStop engages in the purchase and resale of pre-owned serialized video gaming consoles and other such electronic devices. Such businesses are required to obtain proper identification, report transactions to law enforcement, and hold such items for a minimum number of days before resale. GameStop agreed to adopt the compliance program as outlined in the stipulated judgment, to include the implementation of new trainings and procedures, designed to bring aspects of GameStop’s business model into full compliance with California’s secondhand dealer laws.

The final judgment in this case was signed and approved on January 29, 2019, by Riverside County Superior Court Judge Randall Stamen.

The case, RIC1706142, was jointly prosecuted by the Shasta County District Attorney’s Office, and Riverside County Deputy District Attorney Timothy Brown, of the DA’s Consumer Protection Team.

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