In sum, Microsoft engaged in bait and switch–assuring consumers they were purchasing ‘Vista Capable’ machines when, in fact, they could obtain only a stripped-down operating system lacking the functionality and features that Microsoft advertised as ‘Vista.’”

– Excerpt from the Vista Capable lawsuit

Looks like the three-hour deposition Microsoft CEO Steve Ballmer gave in the so-called “Vista Capable” class action suit was for naught. A judge Wednesday ruled that the lawsuit, which has troubled Microsoft for nearly two years now, cannot go forward as a class action. Instead, plaintiffs who claim Microsoft labeled PCs “Windows Vista Capable” even though the computers were capable of running only the stripped down “Home Basic” version of the OS, must pursue their cases individually. Seems the plaintiffs were unable to convincingly demonstrate that the “Windows Vista Capable” marketing program resulted in increased sales for Microsoft, an argument essential to supporting their class action claim.

A lucky turn of events for Microsoft (MSFT) and one that could potentially save the company millions of dollars in compensatory damages and, by some accounts, up to $8.52 billion-worth of memory and graphics cards if it should lose the case–assuming any of the plaintiffs have the courage to go up against Microsoft on their own.

It’s taken nearly a year, but the inevitable class-action fallout from Facebook’s ill-starred Beacon advertising system has finally begun. Filed in California, the suit claims Facebook and its ad partners violated online privacy and computer fraud laws by collecting and publicly disclosing information about users’ online activities without proper consent. Facebook’s “Beacon” advertisements, as you may recall, transformed member transactions on third-party partner sites into product/service endorsements and inserted them into their friends’ “news feeds.” Facebook members, or should I say “fansumers,” were automatically opted-in to the program. Worse, Beacon collected information about member actions on affiliate sites even if they’d opted out of the service and logged off from Facebook. As the suit notes, “By the time any user was notified that Facebook was (at a minimum) an observing party to the transaction, and that Facebook was asking for an approval to publicly broadcast identifying information regarding the event, personally identifying information had already been communicated to Facebook.”

Given that, it’s surprising this suit, which demands the deletion of any ill-gotten data and some form of restitution, wasn’t filed earlier. Certainly, it seems a sure thing after Facebook’s acknowledgment of these issues.

[Image credit: FSJ]