Sarah Mirando  |  May 29, 2012

Category: Legal News

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Follow us on Twitter and Facebook for the latest Class Action Settlement News!

Microsoft Bans Consumer Class Action Lawsuits

By Matt O’Donnell

 

Microsoft Microsoft announced last Friday that it is revamping its Terms of Service agreement to prevent consumers from filing class action lawsuits against the company.

Microsoft tried to spin the announcement as a positive thing for its customers.

“We think this is the right approach for both Microsoft and our U.S. customers,” wrote Microsoft Assistant General Counsel Jim Fielden in a blog post Friday. “Our policy gives Microsoft powerful incentives to resolve any dispute to the customer’s satisfaction before it gets to arbitration, and our arbitration provisions will be among the most generous in the country. For instance, we permit arbitration wherever the customer lives, promptly reimburse filing fees, and, if we offer less to resolve a dispute informally than an arbitrator ultimately awards, we will pay the greater of the award or $1,000 for most products and services — plus double the customer’s reasonable attorney’s fees. Most important, this approach means customer complaints will be resolved promptly, and in those cases where the arbitrator agrees with the customer’s position, the customer will receive generous compensation, and receive it quickly.”

Microsoft said that it had already updated the user agreement of its Xbox Live service to put its no-class-action policy in place, and would extend the practice to other products and services over the next few months. It said its decision to ban class action lawsuits was based on the 2011 Supreme Court case, AT&T Mobility vs. Concepcion, which allows companies to settle a complaint either privately or via small claims court, but can prevent the Plaintiff from forming a class for a class action lawsuit.

“Many companies have adopted this approach, which the U.S. Supreme Court permitted in a case it decided in 2011. We made this change to our terms of use for Xbox Live several months ago, and we will implement similar changes in user agreements for other products and services in the coming months as we roll out major licensing, hardware or software releases and updates,” Fielden said.

“We think this is the right approach for both Microsoft and our U.S. customers. Our policy gives Microsoft powerful incentives to resolve any dispute to the customer’s satisfaction before it gets to arbitration, and our arbitration provisions will be among the most generous in the country.”

Microsoft may think it’s the right approach, but do you?

When Sony announced last year that it was changing its PlayStation Network Terms of Service to ban class action lawsuits, angry gamers fired back with a class action lawsuit accusing Sony of forcing them into mandatory arbitration by threatening to block access to the network unless they agreed to the new terms.

A federal judge dismissed the Sony PSN class action lawsuit in April, ruling that Sony was within its rights to change PSN’s Terms of Service.

 

 

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

 

Updated May 29th, 2012

 

All class action and lawsuit news updates are listed in the Lawsuit News section of Top Class Actions

LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2012 Top Class Actions® LLC
Various Trademarks held by their respective owners.

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.