Sony Adds Mandatory Arbitration Clause to PSN ToS

September 15, 2011 -

If you are a member of Sony's PlayStation Network, chances are you were greeted with an email from the company this morning telling you that that the terms of service for the network are about to change. The big change, in case you haven't received that email yet, relates to your ability to sue them. From section 15 comes this wonderful new clause:

"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."

In laymen's terms, it means that if you feel the need to sue Sony or any of its associated companies that work in concert with PSN, you'll have to go through what's commonly referred to as "mandatory arbitration." You agree to mandatory arbitration on an individual basis when you log onto the network, the new ToS asserts.

Basically you agree to go before a third party if you have a dispute with Sony. Generally these third parties are hired from companies that specialize in corporate arbitration and - most of the time - side with the company that used their services because they want the repeat business. Also, these third parties are not bound to follow the law.

Lovely. You can read the new terms of service here (PDF). The good news for consumers, if there is any at all, is that if you sued prior to August 20, 2011 this change in the ToS has no affect on that action.

As an aside, if you haven't watched the documentary, Hot Coffee, you should because it explains how corporations like Sony have turned "frivolous lawsuits" into a buzzword to mean greedy consumers who want to sue for the dumbest of things.. like getting burned by a cup of hot coffee from McDonald's. We have all heard that story before but when you see the elderly women who filed the lawsuit and how badly it burned her, it shows you that corporations have fooled society into thinking anyone that sues is just out to make a quick buck off of minor complaints. You can watch the trailer to your left.


Comments

Re: Sony Adds Mandatory Arbitration Clause to PSN ToS

Japan why?

Re: Sony Adds Mandatory Arbitration Clause to PSN ToS

I just saw the documentary: it was gut-wrenching.

There is no such thing as a successful frivolous lawsuit.

Living in Canada is awesome. We enjoy the universal healthcare and gun-free environment of a European country while getting all of our games released at the same time as the US.

Re: Sony Adds Mandatory Arbitration Clause to PSN ToS

Technically, you can not sign away any of your rights.  (Unless, of course, you join the military.  Then you sign away certain rights to protect the rights of others.)  However you can be legally held to accept arbitration.

Funny thing, tho, is the article does not state that you can decline the arbitration clause.  I've read the update changes and included in Section #15 is a clause that tells you how to decline arbitration.  You must do it in writing & within 30 days of accepting the changes online.

 


Ruger is coming out with a new and intimidating pistol in honor of Senators and Congressmen.  It will be named "The Politician."  It doesn't work and you can't fire it!

Re: Sony Adds Mandatory Arbitration Clause to PSN ToS

Typical: sign away your rights with a click, jump through hoops to keep them.

Re: Sony Adds Mandatory Arbitration Clause to PSN ToS

See, the fun thing is ToS have no power to break the law. So if something is illegal, legal, a right, etc., it'll stay so. However, the not so fun thing is that many people fall for it and think that whatever is in a ToS actually binds them :(

Re: Sony Adds Mandatory Arbitration Clause to PSN ToS

Is this even enforceable?  We need to hear from that one lawyer that used to do commentaries on videogame-related law.

Re: Sony Adds Mandatory Arbitration Clause to PSN ToS

Generally, arbitration clauses are enforceable as long as the conflict stays within certain bounds, so the answer is 'usually, but not universally'.

Re: Sony Adds Mandatory Arbitration Clause to PSN ToS

I wonder if there's going to be a class action lawsuit over this.

 

Andrew Eisen

 
Forgot your password?
Username :
Password :

Shout box

You're not permitted to post shouts.
Matthew WilsonSF have to build upwards they have natural growth limits. they can not grow outwards. ps growing outwards is terable just look at Orlando or Austin for that.04/16/2014 - 4:15pm
ZippyDSMleeIf they built upward then it would becoem like every other place making it worthless, if they don't build upward they will price people out making it worthless, what they need to do is a mix of things not just one exstreme or another.04/16/2014 - 4:00pm
Matthew Wilsonyou know the problem in SF was not the free market going wrong right? it was government distortion. by not allowing tall buildings to be build they limited supply. that is not free market.04/16/2014 - 3:48pm
ZippyDSMleeOh gaaa the free market is a lie as its currently leading them to no one living there becuse they can not afford it makign it worthless.04/16/2014 - 3:24pm
Matthew WilsonIf you have not read http://arstechnica.com/gaming/2014/04/introducing-steam-gauge-ars-reveals-steams-most-popular-games/ you should. It is a bit stats heavy, but worth the read.04/16/2014 - 2:04pm
Matthew Wilsonthe issue is when is doesn't work it can screw over millions in new york city's case. more often than not it is better to let the free market run its course without market distortion.04/16/2014 - 9:36am
NeenekoTrue, and overdone stagnation is a problem. It is a tricky balance. It does not help that when it does work, no one notices. Most people here have benifited from rent controls and not even realized it.04/16/2014 - 9:23am
ZippyDSMleehttp://www.afterdawn.com/news/article.cfm/2014/04/15/riaa_files_civil_suit_against_megaupload04/16/2014 - 8:48am
ZippyDSMleeEither way you get stagnation as people can not afford the prices they set.04/16/2014 - 8:47am
Neenekowell, specifically it helps people already living there and hurts people who want to live there instead. As for 'way more hurt', majorities generally need less legal protection. yes it hurt more people then it helped, it was written for a minority04/16/2014 - 8:30am
MaskedPixelantehttp://torrentfreak.com/square-enix-drm-boosts-profits-and-its-here-to-stay-140415/ Square proves how incredibly out of touch they are by saying that DRM is the way of the future, and is here to stay.04/16/2014 - 8:29am
james_fudgeUnwinnable Weekly Telethon playing Metal Gear http://www.twitch.tv/rainydayletsplay04/16/2014 - 8:06am
ConsterTo be fair, there's so little left of the middle class that those numbers are skewing.04/16/2014 - 7:42am
Matthew Wilsonyes it help a sub section of the poor, but hurt both the middle and upper class. in the end way more people were hurt than helped. also, it hurt most poor people as well.04/16/2014 - 12:13am
SeanBJust goes to show what I have said for years. Your ability to have sex does not qualify you for parenthood.04/15/2014 - 9:21pm
NeenekoSo "worked" vs "failed" really comes down to who you think is more important and deserving04/15/2014 - 7:04pm
NeenekoThough I am also not sure we can say NYC failed. Rent control helped the people it was intended for and is considered a failure by the people it was designed to protect them from.04/15/2014 - 7:04pm
NeenekoIf they change the rules, demand will plummet. Though yeah, rent control probably would not help much in the SF case. I doubt anything will.04/15/2014 - 1:35pm
TheSmokeyOnline gamer accused of murdering son to keep playing - http://cnews.canoe.ca/CNEWS/Crime/2014/04/15/21604921.html04/15/2014 - 11:50am
Matthew Wilsonyup, but curent city rules do not allow for that.04/15/2014 - 11:00am
 

Be Heard - Contact Your Politician