Xbox Live update requires agreement not to sue

December 7, 2011

The slick Xbox Live update that finally rolled out to users apparently came with a fly in the ointment — a mandatory change to its terms of service that requires members to agree not to sue or join class action lawsuits against the company. Instead, the terms ask users to agree to private arbitration in cases of disagreement.

Sony rolled out a similar update to its terms of service in September; EA’s Origin cloud gaming service followed course shortly thereafter.

The Xbox update is different, however, in that it doesn’t appear that users can opt-out of the arbitration agreement. Microsoft confirmed to Kotaku that users have to okay the new clause in order to use Xbox Live.

“They may now bring a dispute to our attention by filling out a simple Notice of Dispute form found at www.xbox.com/notice and mailing in documentation in support of their claim,” the company statement to the blog reads. “We will then work to resolve the dispute to their satisfaction within 60 days. Any customer unsatisfied with the outcome of this informal process may easily initiate arbitration with the American Arbitration Association.”

Users can also take Microsoft to small claims court in case of a disagreement, the company said.

Related stories:

Xbox 360 updates its dashboard with more Kinect control

Xbox Live isn’t just an online gaming service anymore

Sony updates PSN terms to nix class action lawsuits

Hayley Tsukayama covers consumer technology for The Washington Post.
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