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New Sony PSN ToS: Class Action Waiver Included

rwven writes "Yesterday Sony sent an email to PlayStation Network members regarding a change in the Terms of Service for PSN. When agreeing to this new terms of service, you must waive your rights to a class action suit against Sony. I, for one, will not be agreeing to any such thing. You can view section 15 of the new ToS here (PDF)."

58 of 378 comments (clear)

  1. Time to go for a class action suit. by joaommp · · Score: 5, Insightful

    Time to go for a class action lawsuit for trying to make us waive our right to a class action lawsuit. Sony can burn in hell.

    1. Re:Time to go for a class action suit. by Moryath · · Score: 4, Insightful

      All it takes is one good judge to declare that crap unconscionable and unenforcable. ESPECIALLY since it's blatantly a try to protect their asses after setting off multiple class-action suits that are already on the books in which the only possible outcome is Sony getting their asses handed to them in court.

    2. Re:Time to go for a class action suit. by sexconker · · Score: 5, Informative

      All it takes is one good judge to declare that crap unconscionable and unenforcable. ESPECIALLY since it's blatantly a try to protect their asses after setting off multiple class-action suits that are already on the books in which the only possible outcome is Sony getting their asses handed to them in court.

      One good judge? Nope, it'll take 5 of them. And they'll have to sit on the Supreme Court.
      Because on April 27th 2011, five trolls on that bench decided that contractual clauses saying you won't join a class action lawsuit trump your rights, even if your state specifically says that such rights can't be tossed aside by some corporate fuck.

    3. Re:Time to go for a class action suit. by Hatta · · Score: 5, Insightful

      Where are you going to find a good judge?

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    4. Re:Time to go for a class action suit. by meerling · · Score: 4, Informative

      Last time I checked, judges all used to be lawyers before moving up, so... ummm... I'm kind of making your point, aren't I.

    5. Re:Time to go for a class action suit. by augustw · · Score: 2

      They don't void the entire contract (nor render it voidable), they just invalidate the violating clause.

    6. Re:Time to go for a class action suit. by Truekaiser · · Score: 2

      When the judges on the supreme court are corporatism friendly it becomes legal.

    7. Re:Time to go for a class action suit. by Caerdwyn · · Score: 3, Funny

      Where are you going to find a good judge?

      Depends. How much are you willing to spend?

      --
      Everybody gets what the majority deserves.
    8. Re:Time to go for a class action suit. by TheSpoom · · Score: 2

      I guarantee there's a severance clause that says that if a section is deemed unenforceable or unconscionable, it is struck and the rest of the contract remains in full force.

      --
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      - E. Debs
    9. Re:Time to go for a class action suit. by alva_edison · · Score: 4, Informative

      There's a paragraph which most people will miss which states that if you give them notice in writing to a specific address within 30 days of agreeing to the contract, you can opt out of arbitration and retain your right to class action:

      RIGHT TO OPT OUT OF BINDING ARBITRATION AND CLASS ACTION WAIVER WITHIN 30 DAYS. IF YOU DO NOT WISH TO BE BOUND BY THE BINDING ARBITRATION AND CLASS ACTION WAIVER IN THIS SECTION 15, YOU MUST NOTIFY SNEI IN WRITING WITHIN 30 DAYS OF THE DATE THAT YOU ACCEPT THIS AGREEMENT. YOUR WRITTEN NOTIFICATION MUST BE MAILED TO 6080 CENTER DRIVE, 10TH FLOOR, LOS ANGELES, CA 90045, ATTN: LEGAL DEPARTMENT/ARBITRATION AND MUST INCLUDE: (1) YOUR NAME, (2) YOUR ADDRESS, (3) YOUR PSN ACCOUNT NUMBER, IF YOU HAVE ONE, AND (4) A CLEAR STATEMENT THAT YOU DO NOT WISH TO RESOLVE DISPUTES WITH ANY SONY ENTITY THROUGH ARBITRATION.

      --
      He effected a bored affect.
    10. Re:Time to go for a class action suit. by introcept · · Score: 2

      There's a paragraph which most people will miss which states that if you give them notice in writing to a specific address within 30 days of agreeing to the contract, you can opt out of arbitration and retain your right to class action:

      RIGHT TO OPT OUT OF BINDING ARBITRATION AND CLASS ACTION WAIVER WITHIN 30 DAYS. IF YOU DO NOT WISH TO BE BOUND BY THE BINDING ARBITRATION AND CLASS ACTION WAIVER IN THIS SECTION 15, YOU MUST NOTIFY SNEI IN WRITING WITHIN 30 DAYS OF THE DATE THAT YOU ACCEPT THIS AGREEMENT. YOUR WRITTEN NOTIFICATION MUST BE MAILED TO 6080 CENTER DRIVE, 10TH FLOOR, LOS ANGELES, CA 90045, ATTN: LEGAL DEPARTMENT/ARBITRATION AND MUST INCLUDE: (1) YOUR NAME, (2) YOUR ADDRESS, (3) YOUR PSN ACCOUNT NUMBER, IF YOU HAVE ONE, AND (4) A CLEAR STATEMENT THAT YOU DO NOT WISH TO RESOLVE DISPUTES WITH ANY SONY ENTITY THROUGH ARBITRATION.

      I think I'd rather not email Sony's legal department to register myself as a trouble maker....

    11. Re:Time to go for a class action suit. by psmears · · Score: 2

      That's weaselly in a number of ways - not just the fact that few people will read it or realise its significance until they have a reason to sue Sony (and consult a lawyer), but also the fact that the choice is between "you must use arbitration and waive all rights to class action", and "never resolve disputes with any Sony entity via arbitration". No thanks - I'd prefer to hang on to my right to choose whether to enter arbitration or not, or pursue a class action or not, based on the nature of the dispute...

    12. Re:Time to go for a class action suit. by Anonymous Coward · · Score: 2, Informative

      I am German. And a lawyer. Only not your lawyer. German courts have declared that sex slavery and toilet slavery is legal with certain conditions. If you kidnap a girl, tie her up in your bathroom and make her eat poo, it is not legal. If girl agrees to be your toilet slave, it is legal contract, subject to contract laws and regulations.

      Greets,
      Johan Z

    13. Re:Time to go for a class action suit. by Anonymous Coward · · Score: 3, Funny

      I am German. And a lawyer. Only not your lawyer. German courts have declared that sex slavery and toilet slavery is legal with certain conditions. If you kidnap a girl, tie her up in your bathroom and make her eat poo, it is not legal. If girl agrees to be your toilet slave, it is legal contract, subject to contract laws and regulations.

      Too bad I can't mod this "astounding".

  2. so let me get this right... by Tastecicles · · Score: 4, Interesting

    in order for you to enjoy gaming on PSN, you must first agree to a EULA which automatically waives your right to enjoin a Class Action against Sony should their network be compromised again!?
    Are they expecting their network to be compromised again??
    Is this legal??

    Sony, you are a bunch of deluded fuckheads.

    --
    Operation Guillotine is in effect.
    1. Re:so let me get this right... by tysonedwards · · Score: 5, Insightful

      It is surprising how a company that used to be regarded as the highest quality whatever-it-was-trying-to-sell can now have the level of respect usually afforded used car salesmen.

      --
      Thirty four characters live here.
    2. Re:so let me get this right... by xMrFishx · · Score: 2

      I believe in England EULAs aren't Legal & Binding, so this sounds a bit dodgy to me. You can't just lose your rights because of some wall of text.

    3. Re:so let me get this right... by uglyduckling · · Score: 2

      It's not legal, you can't put terms in a contract like that, there's no way that would ever stand up in court.

    4. Re:so let me get this right... by Anonymous Coward · · Score: 4, Interesting

      It it legal for a minor to enter such a contract?

    5. Re:so let me get this right... by Hatta · · Score: 5, Insightful

      Of course you can. If you hire enough lawyers almost anything is legal. Notice how no one at Sony has gone to jail for hacking thousands of computers with their rootkit. However, if I just hacked one Sony computer, what do you expect would happen?

      The US government plainly does not care about the law, or its citizens. All they care about is pleasing powerful corporations and well connected individuals.

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      Give me Classic Slashdot or give me death!
    6. Re:so let me get this right... by gstoddart · · Score: 3, Insightful

      It's not legal, you can't put terms in a contract like that, there's no way that would ever stand up in court.

      Sadly, I don't think there's enough established case-law and precedent to make that a guaranteed thing.

      For example, SCOTUS has ruled that they can force you to arbitration ... so as long as SCOTUS figures the rights of companies trump yours, I fear what you say might not be true.

      --
      Lost at C:>. Found at C.
    7. Re:so let me get this right... by Anonymous Coward · · Score: 4, Funny

      True. I never bought a used car with a rootkit.

    8. Re:so let me get this right... by SilentStaid · · Score: 2

      I never bought a Playstation with the check engine light disabled.

      Then again - I never bought a car with a cool feature like power brakes and had that used car salesmen come to my house years later and cut them a la OtherOS.

      Yeah... I guess you do have a point.

    9. Re:so let me get this right... by Ashe+Tyrael · · Score: 2

      Not so sure about that, I think they're more untested. What is interesting is there's a part in UK consumer law, that would take an act of parliment to change, that basically says "You cannot sign away your statutory consumer rights. Not now, not ever. No rule or contract, however phrased, trumps your basic rights as a consumer."

      it's even an essential part of most T&C's in the UK "Your statutory rights are not affected."

      --
      "How fine you look when dressed in rage."
    10. Re:so let me get this right... by Applekid · · Score: 2

      in order for you to enjoy gaming on PSN, you must first agree to a EULA which automatically waives your right to enjoin a Class Action against Sony should their network be compromised again!?
      Are they expecting their network to be compromised again??
      Is this legal??

      Sony, you are a bunch of deluded fuckheads.

      Also, they sound pretty confident of their new security setup, if you get my meaning.

      --
      More Twoson than Cupertino
    11. Re:so let me get this right... by thomst · · Score: 2

      tysonedwards should have said:

      It is UNsurprising how a company that used to be regarded as the highest quality whatever-it-was-trying-to-sell when Akio Morita ran it can now have the level of respect usually afforded used car salesmen ever since Howard Stringer took over.

      FTFY

      --
      Check out my novel.
  3. Re:So... by ge7 · · Score: 2

    He doesn't have to cancel it. The terms say you can write to Sony that you don't accept that part, and it's ok.

    Of course, here in Europe our laws are saner and this kind of behavior is forbidden by laws. You can't sign off your lawful rights.

  4. Waiving your rights... by girlintraining · · Score: 4, Interesting

    Okay, sooo... who's up for a mass individual filing of, oh, say, 20,000 lawsuits? we'll see how well that works when the courts choke to death on paperwork and reconsider that whole "class action" thing being allowed to be thrown out.

    --
    #fuckbeta #iamslashdot #dicemustdie
    1. Re:Waiving your rights... by Kohath · · Score: 5, Funny

      Okay, sooo... who's up for a mass individual filing of, oh, say, 20,000 lawsuits?

      About 12 people.

    2. Re:Waiving your rights... by king+neckbeard · · Score: 2

      perhaps we should get a helpful lawyer to give DIY instructions.

      --
      This is my signature. There are many like it, but this one is mine.
    3. Re:Waiving your rights... by SmurfButcher+Bob · · Score: 2

      http://www.despair.com/frownonthis.html
      DALLAS, TX - January 2nd, 2001 - In a move that has millions across the Internet community frowning, Despair, Inc. today announced that the U.S. Patent and Trademark Office (USPTO) had awarded them a registered trademark for the 'frowny' emoticon which serves as their logo.

      At a press conference, Despair's COO, Dr. E.L.Kersten, announced his intentions to sue "anyone and everyone who uses the so-called 'frowny' emoticon, or our trademarked logo, in their written email correspondence. Ever."

      Despair filed suit yesterday in a U.S. District Court in Dallas, alleging trademark infringement against over 7 million individual Internet users. The company has requested separate injunctions granted against each. It is believed to be the largest single trademark dispute in history. ...
      Kersten then intoned gravely, "Let our message to trademark violators be clear. Whether you are a 4th grade nothing using your momma's AOL account, or you are Time Magazine's "Man of the Year", we are going to hunt you down, and when we do, we're really going to give you something to :-(® about."

      --

      help me i've cloned myself and can't remember which one I am

  5. I am not a contract lawyer... by BaronHethorSamedi · · Score: 3, Interesting

    Maybe there's one floating around here that could comment on whether this might be deemed unconscionable?

    Seems to me Sony is spontanteously forcing users to renegotiate their use contract in a decidedly one-sided fashion. Yes, yes, all EULAs fall into that category, but this seems more like an ongoing service agreement--you've been using PSN for some time, Sony steps in and says, "Hey, if you want to keep using our network, you need to surrender an important right." Just the sort of important right that could put an individual consumer on more even footing with a multinational corporation in asserting his/her entitlements under contract.

    1. Re:I am not a contract lawyer... by Anonymous Coward · · Score: 5, Informative

      Arbitration provisions are generally enforceable. Unconscionability is a matter of contract law, which varies by state. In New York, to be unenforcable due to unconscionability, the provision must reflect both "procedural" and "substantive" unconscionability at the time it is made. In other words, one party must have used its superior bargaining position to somehow trick or "surprise" the other party into accepting a term which was unexpected or out of the ordinary, and the term itself must be unreasonably oppressive to the party that was tricked or surprised into accepting it. An example of an unreasonably oppressive arbitration provision would be a requirement to use a particular arbitration body that required a $1000 fee for all parties involved in the arbitration, where the customers in question were only complaining of goods worth $500.

      I fairly doubt Sony's term would be held unenforceable, at least in NY. They warn you about the new arbitration clause in big red bold underlined text on the first page of the EULA. That would seem to dispense with any "procedural unconscionability" objections. Additionally, if you win the arbitration, Sony covers your legal costs, and Sony even provides in the EULA that if you wind up having to engage in arbitration outside your home county, against your preference, they'll pay the additional costs you incur by having to arbitrate out of state.

      This is to say nothing of the provision that actually allows you to OPT OUT of the arbitration provision, making this even more of a non-story. All told, I'd say this will be enforced if anyone ever tests it in the courts.

      —Legal.Troll (only allowed to post once per day because Slashdot fucktards mostly have an irrational hatred of the law and lawyers)

    2. Re:I am not a contract lawyer... by zoward · · Score: 2

      Thanks for weighing in.

      --
      "Can't you see that everyone is buying station wagons?"
    3. Re:I am not a contract lawyer... by hedwards · · Score: 2

      Yes, but, no matter how clear the term might be, if it's introduced after the person buys the product and is required in order to fully use the product, I can't see how that wouldn't be unconscionable by that definition. When it comes to updates, it's pretty naive to suggest that people agree to those having had a legitimate chance to opt out.

      This sort of thing stinks of racketeering. You don't want to sign the new ToS? Well, it would be a shame if something were to happen to you because you didn't get the most recent update.

  6. Denmark by JavaBear · · Score: 5, Informative

    The law in Denmark is a bit funny on this, which may be why I haven't seen this mail yet.

    Basically you can not waiver your law given rights in a contract, if the contract (ToS) contains such demands, it pretty much invalidates the entire contract...

  7. You have the ability to opt out by ThinkWeak · · Score: 5, Informative

    FTFToS:

    RIGHT TO OPT OUT OF BINDING ARBITRATION AND CLASS ACTION WAIVER WITHIN 30 DAYS. IF YOU DO NOT WISH TO BE BOUND BY THE BINDING ARBITRATION AND CLASS ACTION WAIVER IN THIS SECTION 15, YOU MUST NOTIFY SNEI IN WRITING WITHIN 30 DAYS OF THE DATE THAT YOU ACCEPT THIS AGREEMENT. YOUR WRITTEN NOTIFICATION MUST BE MAILED TO 6080 CENTER DRIVE, 10 TH FLOOR, LOS ANGELES, CA 90045, ATTN: LEGAL DEPARTMENT/ARBITRATION AND MUST INCLUDE: (1) YOUR NAME, (2) YOUR ADDRESS, (3) YOUR PSN ACCOUNT NUMBER, IF YOU HAVE ONE, AND (4) A CLEAR STATEMENT THAT YOU DO NOT WISH TO RESOLVE DISPUTES WITH ANY SONY ENTITY THROUGH ARBITRATION.

    You just have to go through the pain-staking task of writing them via snail mail and don't forget to keep a copy of your tracking receipt.

    1. Re:You have the ability to opt out by matt_lethargic · · Score: 2

      So all we have to do is write to them and then we still have the right to use a class action against them the next time they give away* our details. Have I got this right?

    2. Re:You have the ability to opt out by v1 · · Score: 3, Insightful

      The problem is, if only say 2% of the people that click Agree actually send that mail, (and that'd be a very optimistic number) then those 2% are the only ones that can engage in a class action suit. And with such small numbers, getting class status will be impossible. And Sony knows this. So there's no point to it, sending that letter is a waste of time unless you are trying to opt out of arbitration instead of class action, and intend to hire a lawyer.

      --
      I work for the Department of Redundancy Department.
  8. My coupon! by Kohath · · Score: 2

    I'm really going to miss that coupon for 50% off a Spongebob theme that we were going to get in that settlement. I earned that coupon because Sony could have warned me 10 minutes earlier about my credit card info possibly (but almost certainly not) being stolen.

    Lawyers will get $3 million in fees, of course.

    1. Re:My coupon! by Anrego · · Score: 2

      Dunno if this is a troll or not, but I'll bite anyway.

      The notification thing, which you've underplayed substantially, was only part of the problem.. the rest was negligence in guarding the data in the first place.

      The point about lawyers getting most of the money, with the actual victims ending up with some kind of token compensation definitely stands though.

  9. Thank you Ontario! by rveldpau · · Score: 5, Informative

    Ontario, Quebec and Alberta actually have legislation that prevents such a clause, which renders Section 15 invalid. This is mentioned in an article about a BC consumer filing a lawsuit against Telus, see this. I haven't tried to track down the actual legislation that prevents these clauses, but CBC tends to be fairly reliable.

    Disclaimer: I am not a lawyer, this is not legal advice.

  10. Re:Cool story, bro by Anrego · · Score: 3, Insightful

    The fact that you can agree to it by clicking a button, but waiving it involves letters and stamps and writing is very telling.

    Obviously this is on purpose. They could very easily have an extra button (or website somewhere) to opt out, but by requiring users to mail in a letter... they are banking on the fact that most people won't bother (and they are probably right).

  11. Re:So... by rveldpau · · Score: 2

    Actually, I am wrong, I missed that it does say the class action waiver as well

  12. Re:Arbitration by SlippyToad · · Score: 2

    That's agreeing not to sue. Agreeing to do something other than suing is agreeing not to sue. Words mean what they mean, and sticking some weasel words on to the end of the words that already mean something doesn't negate those meanings. It just means you, Mr. Sony Representative or whoever the hell you are, don't like what the words mean. So you're trying to re-define them.

    How did basic comprehension of words and sentences become so degraded?

    --
    One day I feel I'm ahead of the wheel / the next it's rolling over me / I can get back on / I can get back on
  13. Re:So... by rwven · · Score: 2

    I simply won't be buying anything again from PSN.

  14. Re:So... by TheRaven64 · · Score: 2

    I very much doubt that that is legal. And, if it is, Sony will have to either turn up at the small claims court to contest their jurisdiction, or appeal later.

    --
    I am TheRaven on Soylent News
  15. My boycott of sony products persists by iplayfast · · Score: 2

    I've not bought any sony products since they removed the other OS option from the ps3, and I must say they've lost a bunch of money from me. Didn't look at any monitors, tvs, cd or anything else with the hated label.

    apparently I'm not alone.
    http://wololo.net/wagic/2011/04/24/64-of-users-ready-to-boycott-sony-products/

  16. Re:Right to opt out by Beorytis · · Score: 2

    It would be 1000x easier for the customer if there were a web-based way to do this.

    They must have learned this trick from the banks: On one hand they will charge you a fee for getting paper statements instead of electronic delivery, but then they send a privacy policy and require you to mail in a form if you don't want them to share your information with marketers.

  17. Re:Opt-out by sexconker · · Score: 4, Informative

    well, you don't actually HAVE to do that, because a clause like this is illegal in the first place. you can't waive your legal rights. this will never hold up in court.

    The Supreme Court of the United States on April 27th, 2011, said it was legal in a 5-4 decision.

  18. Re:So... by John+Courtland · · Score: 5, Informative
    --
    Slashdot is proof that Sturgeon's Law applies to mankind.
  19. Re:South Park "CentiPad" anyone? by ProfMobius · · Score: 3, Insightful

    You did a great job at talking about everything NOT relevant in the episode, beside the relevant part (and the central one). Namely, putting weird clauses in EULA that people do not read but remove some of their basic rights.

    --
    EULA : By reading the above message, you agree that I now own your soul.
  20. Re:So... by rwven · · Score: 2

    Considering how "secure" sony's network was, I'd liken it to a collander....in which case "leaked" is an accurate portrayal. :-P

  21. Blame the Federal Arbitration Act by Quila · · Score: 4, Interesting

    It's the one that promotes arbitration over lawsuits, it's the one that preempts state laws on the issue.

    This interpretation isn't really new either, since it was held to preempt in Southland Corp. v. Keating. That was a 7-2 decision.

    Congress declared a national policy favoring arbitration and withdrew the power of the states to require a judicial forum for the resolution of claims which the contracting parties agreed to resolve by arbitration

    That was in 1984. The law needs to be changed.

  22. Class action suits are a lawyer scam by tgibbs · · Score: 3, Interesting

    Class action suits over consumer products are a lawyer scam. It doesn't much matter whether the alleged product flaw is real or not. The lawyer makes a lot of noise in the media and sues for a ridiculous amount of money, then offers to settle for less than it would cost the company to defend itself in court. The company settles--after all, defending itself in court would just generate more news reports and extend the bad publicity for months, and even if they won, would end up cost them more money than the settlement. All the "members of the class" get a piddly settlement, like a gift certificate for more of the company's products, that is barely even decent compensation for the time it took them to fill out the paperwork. But the lawyer gets a slice of all of those piddly settlements which add up to a nice chunk of change--all for no work other than giving a few press conferences and sending a few letters.

    1. Re:Class action suits are a lawyer scam by tgibbs · · Score: 2

      Except that in practice, with class action suits over consumer devices, it makes no difference whatsoever whether there is any actual merit to the suit. The company always settles anyway, because it's cheaper than going to court. So it's not a punishment or deterrent for anything--just legal extortion, and for the manufacturer, merely part of the cost of doing business. End the end, the cost is footed by the consumer in the form of higher prices. Nobody benefits from such suits but lawyers

  23. Don't worry, the free market will take care of by makubesu · · Score: 2

    this! Why who would buy from a company with such rules?
    Oh, haha, that's right, basically all of their old customers. Apathy will win in the end. I guess this is just one further thing we can expect from our cans of soup EULAs 10 years from now.

  24. So? Fuck the class action suit. by Khyber · · Score: 3, Insightful

    You'll get more money (and they'll lose more) in small claims court.

    --
    Still waiting on Serviscope_minor to wake up to fucking reality and realize that Jessica Price isn't going to fuck him.