Blizzard Entertainment Diablo 3 locked my account, will not allow access without government ID Irvine, California

SENT TO BBB:

I purchased a game from Blizzard on 8/12/2012 via download. I have been able to play the game up until about yesterday where Blizzard requires you to enter an "authentication code" via a mobile authenticator from your cellphone. This authenticator began failing to work for some reason since yesterday. I called Blizzard, and they instructed me I would need to provide a government issued ID in order to re-instate the account. This is mentioned nowhere under their terms of services, and erroneous since Blizzard is a VIDEO GAME COMPANY not a financial or government institution, furthermore I do not feel comfortable providing this information to them.

As a result, all of the digital assets I have purchased in their online marketplace, including the price of the game are now forfeit. I refuse to submit my identification, and if a successful resolution cannot be established by either re-instating my account and removing the authenticator rubbish, or refunding me for EVERY purchase ever made on blizzard.net, then I will be forced to file suit in small claims court here in Santa Monica, CA. TO support my case, there are 48 other public cases on Ripoffreport with the same issue http://www.ripoffreport.com/Search/blizzard.aspx.