Coinbase sued over Dogecoin sweepstakes advertising campaign
A Coinbase user has filed a class action lawsuit seeking $ 5 million in damages over an allegedly misleading Dogecoin campaign.
In the legal document, David Suski, the plaintiff, said he had been tricked into trading $ 100 worth of Dogecoin (DOGE) to enter a $ 1.2 million Coinbase sweepstakes. The document claims that Coinbase failed to disclose that a person can enter the sweepstakes without buying $ 100 worth of Dogecoin.
On the first day Dogecoin became available for trading on Coinbase, June 3, 2021, the company sent users an email about the sweepstakes labeled “Trade Doge, Win Doge”. The email will contain details of how the transaction will be entered, or if a person visits the separate Rules and Details page, you can also import them by sending Coinbase a 3×5 inch index card. Index cards require the name, address, e-mail address, telephone and date of birth of the customer for import.
In the document, the plaintiff alleges that the competition promotion was misleading because anyone could participate free of charge by submitting a letter on the index card with the required information. It then claimed that the sweepstakes campaign was designed to “deceive and confuse” plaintiffs and other customers who traded $ 100 Dogecoin in order to be eligible. The document also states that the plaintiff would not have given Coinbase $ 100 or paid a commission on the transaction to purchase Dogecoin if the ad had been advised of the 100% free entry option because it already had 1,000 Dogecoin on one Had an account with another company. The class action lawsuit states:
“The only reason the plaintiff bought more Dogecoins from Coinbase was because the company made him believe it was necessary to enter Coinbase’s $ 1.2 million contest.”
The associated class action lawsuit against Binance is aimed at futures trading on the exchange
The lawsuit seeks more than $ 5 million in damages on behalf of plaintiff Suski and millions of other Coinbase users.