14 DAY TRIAL // Recently, Microsoft started to perform various changes to its user agreements that consumers need to accept when accessing the company’s products and services.
Among these changes, the Redmond-based software giant included one that would require users to bring any issue they have with the company in small claim court or arbitration, and it requires that they do not participate in class-action suits.
This modification was made for Microsoft’s users in the United States, and it is applicable to those cases when the company can’t informally resolve the dispute.
Apparently, the company has already put the new policy in place for its Xbox Live service, and it plans on making the change to the user agreements of more of its products in the near future.
“Many companies have adopted this approach, which the U.S. Supreme Court permitted in a case it decided in 2011,” Tim Fielden, assistant general counsel, Microsoft, explains in a recent blog post.
“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.”
Tim Fielden also notes that this new approach is the right one for both its US customers and for the software company.
Through these changes, customers should expect for their complaints to be resolved much faster, Microsoft claims.
Moreover, the new approach ensures that users receive generous compensation faster than before, at times when the arbitrator agrees with the customer’s position.
“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,” he continues.
“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.”
One thing that is certain, however, is that the new approach to user agreement could save the company millions when comparing class-action lawsuits with punitive judgments in jury trials.
The software giant also notes that it has a 45-day refund policy for certain Microsoft software or hardware products that were purchased from retailers. Through it, users can get a full refund, along with reimbursement of shipping costs of up to $7.