Microsoft Changes Terms Of Services To Block Class-Action Lawsuits

Posted Jun 10, 2012

Microsoft is one of the most dominant players when it comes to personal computing, searching the Internet, playing video games, and chatting with video through Skype. Even though you are one of millions of people that use Microsoft products, you will not be able to join a class action lawsuit. The company is changing around customer contracts that would prohibit consumers from getting together and filing grievances against them.

“When a customer in the United States has a dispute about a Microsoft product or service, many of our new user agreements will require that, if we can’t informally resolve the dispute, the customer bring the claim in small claims court or arbitration, but not as part of a class-action lawsuit,” stated Microsoft assistant general counsel Tim Fielden in a 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.”

This change in policy would allow Microsoft to resolve disputes to the customer’s satisfaction before it leads to arbitration. The problem with many class-action lawsuits is that they are abused by settlement attorneys.