A federal class action lawsuit claims Microsoft breaches its contract with customers by barring them from their Xbox LIVE service if they have their Xbox 360 console repaired by local tech people.

According to the class action lawsuit, Xbox customers spend anywhere from $59.99 to $99 a year for an Xbox LIVE subscription, and between $4.99 and $74.99 for Microsoft Points, which can be used to buy games, add-ons, TV shows and more in the Xbox LIVE Marketplace. However, all this money can suddenly, and without warning, be flushed down the toilet if Microsoft decides to exclude the user's Xbox console from the Xbox LIVE service for violating the Terms of Use – which apparently includes having the console repaired by a non-Microsoft sanctioned repairman.

When this happens, the console displays the following message: “This console has been banned for violations of the Terms of Use. To protect Xbox LIVE service and its members, Microsoft does not provide details about console bans. There is no recourse for Terms of Use violations.”

The class action lawsuit says Microsoft does not issue refunds or credits for time remaining on Xbox LIVE memberships, Microsoft Points, or items purchased with Microsoft Points when this happens.

 

Plaintiff Ann Talyancich alleges in the Microsoft Xbox LIVE class action lawsuit that after her console’s DVD drive failed, she hired a local repairman to repair the unit and install a new DVD drive. In April 2011, she purchased a 12-month subscription to Xbox LIVE Gold that included a bonus month. About a month later, Microsoft installed a software update on her console that excluded her from the Xbox LIVE service, she claims.

“The exclusion of [her unit] from the Xbox LIVE service by Defendant was in reprisal for the DVD drive repair that was performed by someone other than Defendant,” the class action lawsuit states. Talyancich had approximately 12 months left in her subscription and had purchased Microsoft Points, but was unable to obtain a refund or credit.

The Xbox LIVE class action lawsuit is brought on behalf of all U.S. residents whose Xbox consoles have been excluded from the Xbox LIVE service. It is seeking damages, restitution and an injunction barring Microsoft from excluding Xbox consoles from accessing Xbox LIVE service.  

A copy of the Microsoft Xbox LIVE Service Class Action lawsuit can be read here.

The case is Ann Talyancich v. Microsoft Corporation, Case No. 12-cv-01128-JCC, U.S. District Court, Western District of Washington, Seattle.