14 DAY TRIAL // Microsoft recently launched a new dashboard update for the Xbox 360 home console and it seems that one of the biggest upgrades it makes are to the company’s ability to protect itself from legal challenges from customers who have problems with the offered services.
The section 18.1.4 on Binding Arbitration from the new EULA says that the user and Microsoft will try to solve all disputes through an arbitration process, with the player basically renouncing any right to sue the company for breach of the agreement.
The relevant phrase is “You understand and agree that all disputes will be resolved before a neutral arbitrator, whose award will be binding and final, except for a limited right of appeal under the Federal Arbitration Act.”
Section 18.1.6 also aims to limit the right of customers to engage in class action suits against Microsoft, saying that all users will have to sue the company on their own.
The changes serve to limit a gamer’s ability to seek compensation when the agreement it has with the console maker is breached.
The arbitration process, which more and more big companies are turning to in order to replace lawsuits, is seen by a lot of legal experts as a way for big entities to limit their exposure and to solve disputes in a medium where they have the upper hand.
Arbitration is also conducted in private and often those involved are subjected to media blackouts, unable to make their case to the public.
The United States Supreme Court recently decided that the arbitration process is a viable one and that it is binding for customers who have agreed to it.
Sony made a similar move in its own EULA during September of this year and video game publishers like Electronic Arts are also looking to get stricter agreements that limit the customer’s rights.