Best Buy, Microsoft lawsuit re-emerges with racketeering charges

Another month goes by, another lawsuit that involves Microsoft Corp. (NASDAQ: MSFT). But, this one's not about monopolistic practices and agreements with computer manufacturers. The world's largest software maker is accused of colluding with consumer electronics retailer Best Buy (NYSE: BBY) to install Microsoft's MSN Internet service and then bill customers for the service (which may have gone unused or unnoticed). Where does Best Buy come in? The computers that had the MSN software activated (with a monthly charge not brought to the customer's attention) were sold from the retailer, which was the one to secretly activate those yearly or monthly subscriptions.

This is not a new lawsuit -- it's an old one that was reinstated by the 9th U.S. Circuit of Appeals. The lawsuit involves Best Buy employees activating MSN Internet service subscriptions automatically, without any prior notice to the customer that those subscriptions needed to be explicitly canceled at a later date.

Since the allegations have been reinstated, this time the charges will fall under the Racketeer Influenced and Corrupt Organizations Act (RICO). The customers of both companies who brought the suit allege that the software giant "invested $200 million in Best Buy and agreed to promote Best Buy's online store through its MSN service." This ought to be interesting, since the suit is about four years old now but is being brought up from the ashes again.