Microsoft has wisely slipped a new proviso into the latest Xbox Live terms of service licensing agreement to prevent the kind of class action lawsuit Sony faced after the huge PSN data-breach and site downtime caused by hackers.
It's amusing since most of these agreements already take away the users' rights. The courts almost always uphold these supposed contracts, virtually giving any company the right to sell a faulty, or even dangerous, product.
Here is a snippet from the latest Xbox Live terms of service (TOS) :
"...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 ... you understand and acknowledge that by agreeing to binding arbitration, you are giving up the right to litigate (or participate in as a party or class member) all disputes in court before a judge or jury."
Note the "in the United States" proviso. Many foreign countries do not allow these sorts of contracts, but few make it easy to file a class action lawsuit so it is not as important.
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