After the delayed Xbox 360 Dashboard Update rolled out, consumers everywhere found something waiting for them when they sparked up their systems -- an end agreement preventing the launch of class action lawsuits on Microsoft.
The new clause states that should any dispute arise where “informal negotiations have failed”, Xbox Live users will be required to submit to binding arbitration. Plain speak: Users are giving up their right to take Microsoft to court or be part of a class action. Xbox Live users must also agree that the firm’s liability in any dispute will amount to only $5 for Gold members, and zero for Xbox Live Silver members.
“You can recover from us for all successful claims only direct damages up to a total amount equal to your Service fee for one month,” reads the agreement. “You cannot recover any other damages, including consequential, special, indirect, incidental, or punitive damages and lost profits.”
The limited liability claim is in reference to: “services, loss of data, viruses, breach of contract, misrepresentation, omission, and negligence.”
“Nothing in these terms will exclude or restrict liability for death or personal injury arising from our negligence, fraud, gross negligence, or willful intent,” the agreement continued.
Ultimately, Microsoft is going the same route chosen by Sony and Electronic Arts. There’s arguments that this is not entirely legal in some states (undecided would be a better word for it) and this move by MSFT and the other mentioned companies basically maneuvers consumers into removing their right to keep these companies in check when there’s wrongdoing found out. Let it be known that you can still take Microsoft to court over a dispute, but the clause prevents you from taking part of any class action lawsuits.
