Xbox 360 Update: Microsoft forbids class-action law suits

Joining such corporate cousins as AT&T and the Playstation Network, Microsoft rolled out not just a updated dashboard, but an amended Terms of Service that effectively squashes potential lawsuits before they can reach the courts. Xbox 360 owners must swear fealty to the concept that by using the console, they are giving up the right to sue the company, or as the new TOS put its:

"If you live in the United States, you and Microsoft agree that if you and Microsoft do not resolve any dispute by informal negotiation … any effort to resolve the dispute will be conducted exclusively by binding arbitration in accordance with the arbitration procedures in Section 18.1.7.

You understand and acknowledge that by agreeing to binding arbitration, you are giving up the right to litigate (or participate as a party or class member) all disputes in court before a judge or jury.

Instead, you understand and agree that all disputes will be resolved before a neutral arbitrator, whose award (Decision) will be binding and final, except for a limited right of appeal under the federal arbitration act."

Although the hordes of people mindlessly clicking through the new TOS, anxious to Prestige in Modern Warfare 3 probably don’t care, several state governments have investigated or challenged similar clauses in the PSN Terms of Service. Meanwhile, Microsoft may potentially save millions of dollars by limiting lawsuits to individuals instead of groups. As recently as last August, the company was hit with a class-action suit over alleged double-billing and unauthorized automatic billing procedures.

Src: videogamewriters.com

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