New XBOX LIVE Terms of Use Waive Right To Class Action Law Suit

Posted Dec 8, 2011
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Microsoft has pulled a Sony on its consumers and updated their Terms of Use by making their consumers waive the right to participate in a Class Action Lawsuit, Considering the whole PSN debacle earlier this year I can see how companies might ready themselves for the worst. While PSN has updated their ToS in a Firmware update and post update agreement Microsoft has also taken a more direct approach and put the new ToS agreement in the new Dashboard update for users to agree to if they wish to use the new update.

Earlier this year Sony was hit by a remarkable attack which cost them massive losses, angry consumers, stolen data and a lot of downtime. Ever since then people have been more cautious about their digital footprint and some people even went as far as to form class action lawsuits where members of the public join together and collectively sue a company for money but later in the year Sony released a new Firmware update which made users agree to a new change in Terms of Service which included a clause for the consumer waiving their rights to a class action lawsuit in the future to proceed their use of PSN otherwise people who didn’t agree to the new terms would have their accounts terminated.

Microsoft was supposed to roll out a new Dashboard update today but admist all the excitement they slipped in the same clause as Sony did and are making consumers waive their right of the CALS (Class Action Law Suit) in order to continue use of XBOX LIVE and the New Dashboard update.

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If you head on to the source you will see a large agreement but the real deal isn’t until 18.1.6 listed below

18.1.6. CLASS ACTION WAIVER. YOU AND MICROSOFT AGREE THAT ANY PROCEED­INGS TO RESOLVE OR LITIGATE ANY DISPUTE, WHETHER IN ARBITRATION, IN COURT, OR OTHERWISE, WILL BE CONDUCTED SOLELY ON AN INDIVIDUAL BASIS, AND THAT NEITHER YOU NOR MICROSOFT WILL SEEK TO HAVE ANY DISPUTE HEARD AS A CLASS ACTION, A REPRESENTATIVE ACTION, A COLLECTIVE ACTION, A PRIVATE ATTORNEY-GENERAL ACTION, OR IN ANY PROCEEDING IN WHICH YOU OR MICROSOFT ACTS OR PROPOSES TO ACT IN A REPRESENTATIVE CAPACITY. YOU AND MICROSOFT FURTHER AGREE THAT NO ARBITRATION OR PROCEEDING WILL BE JOINED, CONSOLIDATED, OR COMBINED WITH ANOTHER ARBITRATION OR PROCEEDING WITHOUT THE PRIOR WRITTEN CONSENT OF YOU, MICROSOFT, AND ALL PARTIES TO ANY SUCH ARBITRATION OR PROECCEDING.

As you can see the waiver is indeed present and should not be taken lightly. If ever Microsoft has a serious attack done on them like what happened to PSN you will only be able to claim loss as individuals rather than as a group of angry citizens. So think long and hard before you update to the new Dashboard update.

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