New XBL EULA prevents class-action suits, limits liability to $5

By Stephany Nunneley
7 December 2011 17:53 GMT

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.

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