Class-Action Lawsuit Against EA Claims Price-Gouging
If you bought a Madden NFL game within the past six years, you paid too much. That’s what’s alleged in a class-action lawsuit against Electronic Arts, which claims an exclusive agreement with the National Football League allowed EA to inflate the price of its Madden titles by up to 70%.
Seattle-based law firm Hagens Berman is representing consumers in the case, and attorney Steve Berman said EA violated antitrust and consumer protection laws by holding exclusive license agreements with the not only the NFL, but also the NCAA and Arena Football League.
“We believe EA forced consumers to pay an artificial premium on Madden NFL video games,” said Berman. “We intend to prove that EA could inflate prices on their sports titles because these exclusive licenses restrained trade and competition for interactive sports software.”
U.S. District Court Judge Vaughn Walker certified the suit against EA on December 21, allowing the case to proceed.
“Consumers now have a legal standing to demand that EA refund consumers millions of dollars it made from Madden NFL and other sports titles through what we contend was an illegal price-gouging scheme,” Berman continued. “We’re gratified by the ruling, and believe it underscores how lucrative and exclusive agreements in the video game industy can come with an inflated price tag for consumers.”
EA has yet to comment on the class-action suit. The plaintiffs did not specify a dollar amount they are seeking on behalf of consumers.
Sharkey says: Huh? These types of licensing agreements are fairly common and I have no idea how EA and the NFL’s deal would constitute a violation of antitrust laws. And if they’re not supposed to charge $60 for a new videogame, the industry standard across the board, how much? As the NBA videogames from EA and 2K Sports prove, competition does not equate to lower prices for consumers. Strange case.
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