Updated PSN Terms of Service prevents class-action lawsuits

The new PlayStation Network Terms of Service seems squarely aimed at preventing class-action lawsuits, but you can opt-out with a mailed letter within 30 days of the agreement.

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The new PlayStation Network Terms of Service seems aimed at preventing class action lawsuits from occurring in the future. The TOS specifically says that by agreeing to it, you agree to settle any legal disputes with Sony individually, instead of as a class action. While most of the document is the standard legalese you've come to expect from a TOS agreement, it's a portion of section 15 that is catching attention:

ANY DISPUTE RESOLUTION PROCEEDINGS, WHETHER IN ARBITRATION OR COURT, WILL BE CONDUCTED ONLY ON AN INDIVIDUAL BASIS AND NOT IN A CLASS OR REPRESENTATIVE ACTION OR AS A NAMED OR UNNAMED MEMBER IN A CLASS, CONSOLIDATED, REPRESENTATIVE OR PRIVATE ATTORNEY GENERAL ACTION, UNLESS BOTH YOU AND THE SONY ENTITY WITH WHICH YOU HAVE A DISPUTE SPECIFICALLY AGREE TO DO SO IN WRITING FOLLOWING INITIATION OF THE ARBITRATION. THIS PROVISION DOES NOT PRECLUDE YOUR PARTICIPATION AS A MEMBER IN A CLASS ACTION FILED ON OR BEFORE AUGUST 20, 2011.

The full document (via GameSpot) covers the Sony Entertainment Network and PlayStation Network. There does seem to be a way to agree and still retain your class action rights, however. Kotaku reports that the agreement also includes an opt-out of the class action waiver, if you send Sony written notice within 30 days of accepting the agreement. The notice needs to include your name, address, PSN name, and a clear indication that you don't wish to resolve disputes through arbitration. Plus, you need to send it the old-fashioned way, with an actual letter. Yes, those still exist.

The new TOS won't impact any suits brought before August 20, 2011, so the ones still pending like those that followed the PlayStation Network breach would be unaffected. However, like any large company Sony has a history of these suits, and this is certainly a move to prevent further ones.

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From The Chatty
  • reply
    September 15, 2011 1:00 PM

    Steve Watts posted a new article, Updated PSN Terms of Service prevents class-action lawsuits.

    The new PlayStation Network Terms of Service seems squarely aimed at preventing class-action lawsuits, but you can opt-out with a mailed letter within 30 days of the agreement.

    • reply
      September 15, 2011 1:14 PM

      Something, something, something, I can't believe people read those...

    • reply
      September 15, 2011 2:05 PM

      EVERY company should put more harsh you can't sue us notices on their products...

    • reply
      September 15, 2011 2:21 PM

      "Other than those matters listed in the Exclusions from Arbitration clause (small claims), you and the Sony Entity that you have a Dispute with agree to seek resolution of the Dispute only through arbitration of that Dispute in accordance with the terms of this Section 15, and not litigate any Dispute in court. Arbitration means that the Dispute will be resolved by a neutral arbitrator instead of in a court by a judge or jury."

      That seems to go both ways. So Sony can't sue you if you have signed up to this. Of course they wont abide by their own TOS.

    • reply
      September 15, 2011 3:55 PM

      The Consumerist made a nice feature a couple years ago called "Mandatory Binding Arbitration: The Worst Choose Your Own Adventure Ever", to show how bad arbitration can get for consumers.
      http://consumerist.com/2009/02/mandatory-binding-arbitration-the-worst-choose-your-own-adventure-ever.html

      The point that we're making isn't that lawsuits solve everything, or even that all arbitration is bad. What we're attacking are contracts that require you upfront to agree to binding arbitration. If a problem arises and both parties want to arbitrate, that's fine. Even a contract that requires arbitration, but allows litigation if the result is unsatisfactory, is acceptable. The essential component is the choice to arbitrate, or not arbitrate.

      I understand that Sony doesn't want a repeat of the litigation that happened as a result of the PSN breach, but now the sole remedy of the consumer for disputes is through arbitration, a process that inherently is in favor of the service provider. So start writing those opt-out letters, or just never sign up for PSN, ever.

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      September 15, 2011 5:43 PM

      I'm going to opt out, but I'll inform them I'll waive my rights for a free copy of killzone 3

    • reply
      September 15, 2011 5:45 PM

      That court ruling a few months ago that allows this shit was atrocious. Worst ruling since citizens united.

      • reply
        September 16, 2011 1:49 AM

        You are correct, sir. Lucky for corporations that the large majority of the public doesnt give a fuck. The PR campaign against "frivolous" lawsuits has been hugely successful and now we are locked into this arbitration game.

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