The New Xbox 360 Dashboard TOS Takes Away Customers’ Right To Sue

Mimicking a similar move that was done by Sony not so long ago, Microsoft has amended the Xbox 360 terms of service to prevent U.S. customers from taking the participating in class action lawsuits against it.

 “If you live in the United States,” the new TOS reads. “You and Microsoft agree that if you and Microsoft do not resolve any dispute by informal negotiation ... any effort to resolve the dispute will be conducted exclusively by binding arbitration in accordance with the arbitration procedures in Section 18.1.7.”

“You understand and acknowledge that by agreeing to binding arbitration, you are giving up the right to litigate (or participate 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.”