An angry Dogecoin fan claims Coinbase deliberately concealed a free entry option in its “Trade Doge, Win Doge” contest, he says Coinbase misled him as a ploy to increase Doge liquidity.
Because of an allegedly deceptive Dogecoin campaign, a Coinbase user has filed a class-action lawsuit demanding $5 million in damages.
The complainant, David Suski, claims he was duped into trading $100 worth of Dogecoin (DOGE) for a chance to win $1.2 million in a Coinbase competition.
According to the complaint, Coinbase failed to inform customers that they may participate in the sweepstakes without spending $100 on Dogecoin.
The business sent out an email to users about the sweepstakes on the first day Dogecoin was available for trade on Coinbase, June 3, 2021, with the subject line “Trade Doge, Win Doge.”
The email included instructions on how to join by trading or by mailing Coinbase a 3×5-inch index card, which could be found on a separate “rules and details” page.
To enter, the customer’s name, address, email address, phone number, and date of birth had to be entered on the index card.
The plaintiff claims in the document that the sweepstakes campaign was deceptive because anyone could enter for free by mailing in an index card with the required information.
It then claims that the sweepstakes advertisement was created to “deceive and confuse” the plaintiff and other consumers into trading $100 in Dogecoin in order to be eligible for admission.
The plaintiff would not have provided Coinbase $100 or paid the commission for the trade to acquire Dogecoin if the ads had made it known about a 100% free entry option, according to the lawsuit because he already owned 1,000 Dogecoin in an account with another company.
The following is taken from the class action complaint:
“The only reason that Plaintiff undertook to buy more Dogecoins from Coinbase was that the Company led him to believe that doing so was necessary to enter Coinbase’s $1.2 Million Sweepstakes.”
Suski, the plaintiff, and millions of other Coinbase customers are seeking more than $5 million in damages in the complaint.