If there is one positive effect that the recent string of rights-crushing EULA’s have had on me, it’s that I now take the time to at least skim through them. Last night’s Xbox Live Dashboard update brought a new EULA with it, and it looks like Microsoft is now following in the footsteps of Sony and EA in removing your right to class action lawsuit. As with the Origin and PSN EULAs, you cannot use the service unless you agree to the new terms. So basically, they are holding your service hostage unless you agree to play ball with them 1-on-1 in case of a legal dispute. The exact words can be found in section 18.1.6:
18.1.6. CLASS ACTION WAIVER. YOU AND MICROSOFT AGREE THAT ANY PROCEEDINGS TO RESOLVE OR LITIGATE ANY DISPUTE, WHETHER IN ARBITRATION, IN COURT, OR OTHERWISE, WILL BE CONDUCTED SOLELY ON AN INDIVIDUAL BASIS, AND THAT NEITHER YOU NOR MICROSOFT WILL SEEK TO HAVE ANY DISPUTE HEARD AS A CLASS ACTION, A REPRESENTATIVE ACTION, A COLLECTIVE ACTION, A PRIVATE ATTORNEY-GENERAL ACTION, OR IN ANY PROCEEDING IN WHICH YOU OR MICROSOFT ACTS OR PROPOSES TO ACT IN A REPRESENTATIVE CAPACITY. YOU AND MICROSOFT FURTHER AGREE THAT NO ARBITRATION OR PROCEEDING WILL BE JOINED, CONSOLIDATED, OR COMBINED WITH ANOTHER ARBITRATION OR PROCEEDING WITHOUT THE PRIOR WRITTEN CONSENT OF YOU, MICROSOFT, AND ALL PARTIES TO ANY SUCH ARBITRATION OR PROECCEDING.
You might also find 18.1.4 interesting:
18.1.4. BINDING ARBITRATION. IF YOU LIVE IN THE UNITED STATES, YOU AND MICROSOFT AGREE THAT IF YOU AND MICROSOFT DO NOT RESOLVE ANY DISPUTE BY INFORMAL NEGOTIATION UNDER SECTION 18.1.2 ABOVE, ANY EFFORT TO RESOLVE THE DISPUTE WILL BE CONDUCTED EXCLUSIVELY BY BINDING ARBITRATION IN ACCORDANCE WITH THE ARBITRATION PROCEDURES IN SECTION 18.1.7 BELOW. YOU UNDERSTAND AND ACKNOWLEDGE THAT BY AGREEING TO BINDING ARBITRATION, YOU ARE GIVING UP THE RIGHT TO LITIGATE (OR PARTICIPATE IN AS A PARTY OR CLASS MEMBER) ALL DISPUTES IN COURT BEFORE A JUDGE OR JURY. INSTEAD, YOU UNDERSTAND AND AGREE THAT ALL DISPUTES WILL BE RESOLVED BEFORE A NEUTRAL ARBITRATOR, WHOSE AWARD (DECISION) WILL BE BINDING AND FINAL, EXCEPT FOR A LIMITED RIGHT OF APPEAL UNDER THE FEDERAL ARBITRATION ACT. ANY COURT WITH JURISDICTION OVER THE PARTIES MAY ENFORCE THE ARBITRATOR’S AWARD.
THE ONLY DISPUTES NOT COVERED BY THE AGREEMENT IN SECTION 18.1 TO NEGOTIATE INFORMALLY AND ARBITRATE ARE DISPUTES ENFORCING, PROTECTING, OR CONCERNING THE VALIDITY OF ANY OF YOUR OR MICROSOFT’S (OR ANY OF YOUR OR MICROSOFT’S LICENSORS’) INTELLECTUAL PROPERTY RIGHTS.
Now I’m not a lawyer or anything, but that sounds like I’m giving up a right to a judge and jury. With Xbox Live holding sensitive data like credit cards, I’m not so sure I want to give up rights that would protect me in case that information gets compromised. As I was reading this, I came closer and closer to hitting that decline button and departing from XBox Live forever. Fortunately, Microsoft has provided an opt-out clause similar to what Sony did for PSN:
18.1.11. YOUR RIGHT TO REJECT CHANGES TO ARBITRATION AGREEMENT. Notwithstanding anything to the contrary in this contract, Microsoft agrees that if it makes any change to Section 18.1 (other than a change to the notice address in Section 18.1.3) while you are authorized to use the Service, you may reject the change by sending us written notice within 30 days of the change by U.S. Mail to the address in Section 18.1.3. By rejecting the change, you agree that you will informally negotiate and arbitrate any Dispute between us in accordance with the most recent version of Section 18.1 before the change you rejected.
The address you’re looking for is:
Microsoft Corporation
ATTN: LCA ARBITRATION
One Microsoft Way
Redmond, WA 98052-6399
Be sure to include your name, address, and contact information, Windows Live ID or gamertag so that there is no confusion. It also probably wouldn’t hurt if you put some type of delivery receipt on it. Unfortunately, I know that most people won’t read the EULA. I also know that some will read it, but not care enough to opt-out. As long as the bulk of users do nothing, companies will continue to strip your consumer rights away; one EULA at a time. Take this info and do with it as you will. I, for one, will have my opt-out letter sent by the weekend. Here is the EULA if you want to read it all the way through.
