Wed, Dec 07, 2011 | 17:53 GMT
New XBL EULA prevents class-action suits, limits liability to $5
Like Sony and EA before it, Microsoft has updated its user agreement to include a clause which keeps users from bringing a class-action suit against the firm. It has also limited its liability to the cost of one month of service, which is around $5 for Gold members, and zero for Silver members.
According to a report on Gamespot, the new EULA went into effect with the new dashboard update, and the new arbitration clause states that should any dispute arise where “informal negotiations have failed”, Xbox Live users will be required to submit to binding arbitration. In other words, 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.
You can read the full thing next time you log into XBL, or head through the link to get a more detailed report.
10 comments
#1
Psychotext
07/12/11, 6:43 pm
You can opt out of that “no class action” clause quite legally (there’s info on the web as to what to do)… though 99.99% of people wont, or likely even realise they gave up being able to use class action suits in the first place.
Bless the US where corporations get to write laws though.
#2
DSB
07/12/11, 6:56 pm
Yup, and even if you don’t opt out, there’s still a lot of uncertainty as to whether anyone is actually allowed to deprive you of those rights, so either way it doesn’t do a lot for anyone.
I don’t think any of those companies are interested in going to trial over it. It’s just lawyers trying to go as far as they possibly can.
@1 Hey, legally corporations are people too. Just to underline the complete absurdity of the system
I’ll believe that corporations are people when Texas executes one.
#3
Cygnar
07/12/11, 7:55 pm
The liability limitation has been in the XBL EULA for a very long time already. I remember commenting about it during the controversy over the Playstation 3 EULA.
Large companies are not interested in being sued. If they can limit litigation costs by preventing suits, they will.
@1
Corporations do not get to write laws, but they do get to write contracts. Microsoft cannot control your behavior with its EULA unless you accept the EULA. Remember that Microsoft is not taking your rights away if you accept the agreement; you are giving them up.
#4
sg1974
07/12/11, 8:34 pm
@3 “Corporations do not get to write laws, but they do get to write contracts.”
He’s referring to lobbying and the big-business influencing of the Capitol.
#5
Psychotext
07/12/11, 10:19 pm
I am indeed.
See also SOPA, DMCA and S.978.
#6
DSB
07/12/11, 11:37 pm
@3 Constitution says no.
You’re allowed to limit your rights, but you certainly can’t sign them away. Or at least it couldn’t ever be recognized by law.
In terms of class action lawsuits that raises a pretty significant question, since it’s one of the most powerful weapons that individuals have against corporations who do wrong. Or essentially the only effective one.
#7
Fin
08/12/11, 12:03 am
I don’t have much problem with EULAs preventing class action lawsuits – they pop up for the most ridiculous reasons (“NO BF1943?????? TIME TO SUE!!!!!!”). If people were less greedy/stupid, and only formed class actions when it was actually a good idea, we wouldn’t be in this predicament.
#8
DSB
08/12/11, 12:35 am
@7 Firstly you’re confusing the definition of the word greed. Greed isn’t insisting that you get what you were promised. That’s just called not being an idiot.
The suit you’re referring to never demanded anything except EA and Sony remain true to what they said. No one wanted money. How does that constitute greed exactly?
Secondly you seem to be saying that if people were nicer to corporate entities, the corporate entities wouldn’t have to take their rights away? Are you that stupid?
That’s like saying that people would be less oppressed if only they’d learn to like their dictators. If they didn’t demand freedom of speech and equal opportunity, then the dictators wouldn’t have to kill them, and they’d be less killed and tortured. Everybody wins.
Ultimately a justice system (of the enlightened variety) is meant to provide a fair trial process for everyone. It’s fully within the means of people to file ridiculous lawsuits if they choose, in the same way that freedom of expression fully allows anyone to say any stupid thing they want. And it’s fully within our rights not to listen to them, as it is for the courts to throw out ridiculous lawsuits after hearing the case.
Corporations are hardly strangers to ridiculous lawsuits. Just look at Bethesda or Apple at the moment. I don’t see anyone trying to take their rights away, in spite of also pushing the system as far as it’ll go by using outlandish enterpretations of copyright and patent law, purely to try and gain (likely pointless) business advantages.
#9
Gurdil
08/12/11, 9:48 am
Well, class-action suits don’t exist here in France so… I don’t give a frak! ^^ Seriously though, this kind of EULA is outrageous, I hope this wouldn’t stand in front of a court and it’s just used to make people think they can’t pursue the company… But I’m really unsure about that.
#10
Psychotext
08/12/11, 11:36 am
The only reason any of them are doing it is because a court allowed them to in the first place. The supreme court in the US judged that corporations are able to legally include these sort of terms in their T&Cs / contracts.