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'Vista Capable' lawsuit becomes a class action

Did Microsoft defraud customers over Vista PCs?

The 2007 lawsuit that claimed Microsoft defrauded customers by promoting PCs and laptops as 'Vista Capable' when they could only run Windows Vista Home Basic, has been given class-action status by a federal judge in Seattle.

US District Court Judge Marsha Pechman, however, also put some limitations on the plaintiffs, blocking them, for instance, from arguing that Microsoft deceived consumers because that would require an individual determination for each person included in the class action.

Instead, said Pechman, the lawsuit may pursue a "price inflation" line of reasoning, which would argue that PC buyers paid more than they would have had not Microsoft's marketing boosted demand and increased prices of systems able to run Vista Home Basic, the lowest-priced and simplest edition.

See also:

Vista users - have you been deceived?

Microsoft changes 'Vista Capable' branding

In agreeing that the class-action suit could move forward on that basis, Pechman summarised the argument. "Plaintiffs argue that Microsoft artificially inflated demand for computers only capable of running Vista Home Basic, causing Plaintiffs to pay more for those PCs than they would have without the 'Windows Vista Capable' campaign," she wrote in her 25-page opinion. "Consumers paid for Vista capability (i.e., the computers were priced higher because of their Vista capability), but allegedly did not receive 'real' Vista capability."

The decision was a setback to Microsoft, which now faces a much larger potential pool of plaintiffs.

The original lawsuit, filed almost a year ago by Washington state resident Diane Kelley, charged Microsoft with deceptive practices in letting PC makers slap a 'Vista Capable' sticker on PCs, when "a large number" of the machines would be able to run only Vista Home Basic. Kelley was later joined by a Californian, Kenneth Hansen. Together, they had requested class action status for the lawsuit in November.

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