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Joyent Drops Lifetime Account Holders

New submitter samnorsk writes "I've long been a lifetime account holder of an old textdrive (now Joyent) cloud hosting account. I remember purchasing the account back in college for a few hundred bucks when I really didn't have the money to spend. At the time, I thought that the opportunity to have a persistent lifetime shell / web hosting account would be valuable. This would be a resource I could fall back on no matter what my current situation was. Now, I just received an email stating that Joyent intends to shut down my lifetime account. Quoting: 'We appreciate and value you as one of Joyent's lifetime Shared Hosting customers. As this service is one of our earliest offerings, and has now run its course, your lifetime service will end on October 31, 2012.' They do offer a 512MB cloud machine for one year, but presumably if we don't take that, we're done. In any case, our lifetime commitment would still be dropped in one year if we take that offer. How is it fair or legal for a 'lifetime account' to end when it is no longer convenient for the company? For reference, this was the original offer. In it, they state: 'How long is it good for? As long as we exist.'"

36 of 443 comments (clear)

  1. Just be happy by Anonymous Coward · · Score: 5, Funny

    that they don't kill you.

  2. Recourse by Anonymous Coward · · Score: 4, Interesting

    Smells like a class action suit to me...

    1. Re:Recourse by hobarrera · · Score: 5, Interesting

      In many cases, judges have ruled that the changes cannot be so unbalanced towards one side. "No longer providing a service you have already paid for without any compensation" sounds like a case that would most likely result in this.

    2. Re:Recourse by pixelpusher220 · · Score: 4, Insightful

      Link is here

      Agreed, nothing in the TOS talks about cancellation, and given the boilerplate nature of such things, me thinks they can cancel it if they want. Besides, how much money are you going to spend to fight them in court? Me thinks, not much.

      And more importantly, how many other people are in your situation? Me thinks not many.

      'Not Much' + 'Not Many' = you get to find another solution. And of course rightfully bitch about them publicly :)

      --
      People in cars cause accidents....accidents in cars cause people :-D
    3. Re:Recourse by DigiShaman · · Score: 5, Interesting

      I'm not a lawyer, but he may have a case. Joyent may in fact already know this and calculated it cheaper to settle on offering a lifetime account again --on a per user basis--. The idea betting on all other account holders shrugging it off. In the end, Joyent saves money.

      --
      Life is not for the lazy.
    4. Re:Recourse by afidel · · Score: 5, Insightful

      I'd file in small claims court for the original amount paid. If they don't send a representative you win a default judgement and send them a letter including the court document link. If they don't pay you turn them over to a collection agency (trust me NO company wants a collection agency showing up in a credit report).

      --
      There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
    5. Re:Recourse by jimbolauski · · Score: 5, Insightful

      It doesn't say anything of the sort under their Terms of Service at the time, available through the wayback link.

      It says"

      How long is it good for? As long as we exist.

      The original company no longer exists, and only half of the principals there of, are participants in the new owners.

      Still, one wonders why he can't move all of that into a virtual machine and put the storage in his cloud. That is after all their current line of business is it not?

      Unless a bankruptcy ruling released them from those lifetime commitments there is no way out, when you purchase a company you don't just purchase its assets you get everything including any commitments they made and any liabilities they have.

      --
      Knowledge = Power
      P= W/t
      t=Money
      Money = Work/Knowledge so the less you know the more you make
    6. Re:Recourse by swell · · Score: 4, Interesting

      Forget class action- after attorney fees you will have little or nothing.

      Small claims court is what you want. There are some huge advantages: 1- low cost to file. 2- attorneys are not allowed- only plaintiff and defendant. 3- if defendant does not appear, he will usually lose automatically. What's the chance that the CEO will come to your town to contest a $500 claim?

      Sometimes there is difficulty collecting your judgement if, for instance, an individual skips town. This defendant is easy to find and easy to force payment from.

      Usually you can only make them pay for actual costs. No 'pain and suffering' claims, etc. IANAL, check the rules where you live.

      Have fun. If hundreds do the same you might actually be a nuisance to them.

      --
      ...omphaloskepsis often...
    7. Re:Recourse by luis_a_espinal · · Score: 4, Informative

      Wrong. People buy just the assets of companies and leave behind the debt and liabilities all the time to the original owners.

      No, they don't. Barring a bankrupcy, you simply cannot just buy the assets w/o inheriting the liabilities. I'm sure a lot of people and companies would like thta to be true, but under the lawy, itt doesn't work like that at all.

    8. Re:Recourse by Grimbleton · · Score: 4, Funny

      Do you get paid every time you say "me thinks"?

    9. Re:Recourse by fredprado · · Score: 4, Informative

      As the GP said, only if the company is bankrupt, and then you won't be buying the company, just the assets. In this case the company was bought, so there was no bankruptcy and the liabilities went to the new owner.

    10. Re:Recourse by VGPowerlord · · Score: 5, Informative

      1. Joyent isn't textdrive, i.e. textdrive doesn't exist anymore, so the lifetime obligation has been exhausted.

      Given that the summary linked to the original offer...

      We're pleased to announce a special offer that combines three great products in our family -- TextDrive, Strongspace and Joyent -- available for a one-time payment of just $499.

      Want to try that again?

      2. Whose lifetime? The service's, i.e. no shorter than its lifetime.

      What they said was

      As long as we exist.

      The thing is, even though TextDrive, Inc. no longer exists, "three products in our family" and including two products other than TextDrive makes the offer explicitly from the parent company Joyent, Inc. The same company which still hosts the article author's site.

      --
      GLaDOS for President 2016! "Well here we are again. It's always such a pleasure." -- GLaDOS, 2011
    11. Re:Recourse by Infernal+Device · · Score: 5, Insightful

      Aside from just totally going out of business, Joyent has a commitment to honor. If we don't start holding companies to their word, they will walk all over us worse than they already do.

      It may sound anti-business, but it's more "don't write checks your wallet can't cash". AT&T, Verizon and Sprint have all pulled that bullshit, as well as countless other companies and then weaseled out of it in the name of marketing, once they got their customers. Consumers may not be able to hold their feet to the fire, but we can damn well make sure we minimize the number of companies that try to pull marketing scams like that to get customers.

      Besides, $500 is $500 and thats no small amount of money in these economic times.

      --
      "My God...it's full of trolls!"
    12. Re:Recourse by postbigbang · · Score: 4, Informative

      Not true at all. You can buy a company's assets and none of their liabilities. It's called a "bulk sale of assets". How this is done varies by state, but it's done all the time. Is it fair? That's another story and a problem for liability holders. It's also one of the problems with corporate law and how it's unevenly applied across jurisdictions.

      --
      ---- Teach Peace. It's Cheaper Than War.
    13. Re:Recourse by dgatwood · · Score: 4, Informative

      I wouldn't say aspie either, more like "miser" or "tightwad". Most people would probably figure they got more than $500 worth and move on with life.

      $500 for 6 years of service comes out to about $6.94 per month. That isn't a particularly good deal. In fact, it's actually pretty darn expensive when you put a pencil to it. Much cheaper than their current hosting plans, mind you, but compared with the competition, it's highway robbery. For comparison, two bucks more per month from Dreamhost (in two-year blocks) or nearly a buck less from HostGator (in three-year blocks) gets you unlimited web storage (versus 2 GB), unlimited monthly bandwidth (versus 20 GB), unlimited databases (versus 20), and unlimited hosted domains (versus 15).

      No, this isn't $500 worth. It's maybe $150-200 worth at best.

      Don't know why anyone would even want "lifetime" hosting, as they're just going to leave on some crappy old hardware & depriortize your customer service unless they can get more revenue out of you.

      For the kind of money they paid for the service, that's a good way to get such negative reviews that you quickly find yourself without customers.

      Then again, so is dumping a large chunk of your customer base, so odds are, this company is desperate because they're struggling to pay the bills. I wouldn't trust them to host my lolcats site, much less anything that I cared about.

      --

      Check out my sci-fi/humor trilogy at PatriotsBooks.

  3. Ask for a refund by qwijibo · · Score: 5, Insightful

    They're voluntarily discontinuing the service, they should be willing to pay the $499 back to those who ask for it.

    1. Re:Ask for a refund by ari_j · · Score: 5, Informative

      From their terms of service at the time of the offer, remedies are limited to refund of the amount paid and disputes over $250 must be arbitrated. "Lifetime" is not defined but their offer clearly says "as long as we exist" and they do still exist. If it were me, I would go for the refund and be thankful for 6 years of free use.

    2. Re:Ask for a refund by qwijibo · · Score: 4, Insightful

      If you have to deal with a lawyer or go to court, you've already lost. Going down that path suggests your time is totally worthless, as is your money.

      I don't see why more people don't think of something as simple as responding with a polite request for a refund. Is it really worth their time to deal with bad PR and the deluge of hate emails/calls to their support people from a bunch of annoyed /.ers? Hint: it's really easy to waste many thousands of dollars on dealing with annoyed customers. There's got to be a limited number of people who have the lifetime product, so there's a finite amount that refunds would cost the company to get out of the deal with the least hassle.

    3. Re:Ask for a refund by cpu6502 · · Score: 4, Insightful

      Usually when a company buys another company, they are obligated by law to assume company one's contractual obligations. For example Saturn Car Company may no longer exist but its parent GM must still provide warranty service & 20 years of stock parts under the law. (Ditto with Plymouth which does not exist but Chrysler... and later Daimler-Chrysler... must still continue warranty service & parts.)

      BTW I wouldn't make a big deal about the refund. If the company refuses to refund $499, then negotiate a refund of half that, plus a free account on their current service. It's not worth the effort to goto small-claims court over a tiny $249. (Of course if they refuse to refund Any money then I'd file the claim.)

      --
      My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
    4. Re:Ask for a refund by Barefoot+Monkey · · Score: 5, Informative

      "Copyright 2004–2006 TextDrive Inc. TextDrive is a trademark of Joyent Inc."

      It looks to me like the agreement was with Joyent the whole time. At the very least they were a party to the agreement. Joyent still exists.

    5. Re:Ask for a refund by jimbolauski · · Score: 4, Informative

      Bingo. Wish I had mod points for you. His agreement was with Joyent. I do not believe the new owners have to honor that agreement as Joyent no longer exists.

      Absolutely Not, the only way to get out of that agreement is a refund or bankruptcy, you can't just buy the assets when you buy a company, liabilities and commitments both are transferred to the purchasing company. Before the Rickets bought the Cubs the Cubs filed for Bankruptcy so that any liens from the Tribune could not follow the Cubs to their new owner. When Fiat bought Chrysler they still have to honor all commitments that were not wiped in the bankruptcy pensions, warranties, loans all were honored if the bankruptcy didn't release them from it. If the world worked the way you think it does I could get a loan from the bank for my LLC then sell the company to my brother for $1 but the debt would not follow and since it was an LLC I would not be personally held liable and my brother would get the pile of cash.

      --
      Knowledge = Power
      P= W/t
      t=Money
      Money = Work/Knowledge so the less you know the more you make
  4. Hrm... No disclaimers... by fruitbane · · Score: 5, Insightful

    Well, I read the archived FAQ and TOS and I didn't see any disclaimers. Technically, a company that lists something like a lifetime guarantee or lifetime warranty can get away with only warrantying or guaranteeing the product or service for its market life. Meaning my frying pan with a lifetime warranty is good for what the company deems the lifetime of the frying pan, modified by federal and local laws on what constitutes an acceptable minimum lifetime period. On the other hand, the ad you linked via the Wayback Machine didn't say lifetime, but rather the life of the company. If they've been bought and changed hands they could be considered a new company. Either way, I'd say there certainly seems to be the possibility that they could be legally liable for breach of contract. Just make sure if you decide to take them to small claims court that there's no activity in your own history with their service that violates their TOS and Acceptable Use provisions, because they can use that against you.

  5. Charlie and the Chocolate Factory: by circletimessquare · · Score: 4, Insightful

    Charlie Bucket: But it didn't close forever, it's open right now.
    Mrs. Bucket: Ah, yes, well sometimes, when grown ups say "forever," they mean, "a very long time."

    When businessmen and politicians say "forever" they mean... remember your children's stories.

    --
    intellectual property law is philosophically incoherent. it is your moral duty to ignore it or sabotage it
  6. That settles that... by rwven · · Score: 4, Insightful

    Well, I guess I know to stay away from this company in the future... Total fail.

  7. Why should any company be loyal today? by Aviation+Pete · · Score: 4, Insightful
    In the workplace we have learned to trust our employers just for the duration of the current project, if at all. Why would you now expect a faceless entity run by weasels to be any different?

    I have learned this also the hard way. I once bought a Peugeot bicycle with a lifetime warranty for the frame, which duly broke a few years after. I first wrote Peugeot, and they pointed me at their French headquarters. I wrote them, even in French, and was referred to the bike dealer, where the circle continued. Long story short: I never got anything for my warranty besides the inflated price for the bike and the lesson what a lifetime warranty is *really* worth these days.

    I will never again buy something again from Peugeot, but they sure couldn't care less. The government covers their losses anyway.

    --
    You know it's time for the next revolution when your rulers' names end with roman numerals.
  8. Start at the beginning. by Dzimas · · Score: 5, Insightful

    Email them, politely requesting a full refund. They entered into a contract with you to provide service for "as long as they exist." They are attempting to unilaterally modify the terms of the agreement. While companies often try to grant themselves the right to modify a contract at will, courts have found this to be an unreasonable practice. See Douglas v. Talk America - (http://pub.bna.com/eclr/0675424_071807.pdf ) Should the company fail to respond, investigate filing a case in small claims court requesting a full refund plus interest and reasonable expenses. You may run into difficulty if you reside outside the State of California, because you agreed to undertake all legal action in that state when you signed up. That said, you can include the cost of travel in your suit. You'd have to do a bit of research before filing, but I suspect the company would chose to issue a refund instead of dealing with the hassle of a small claims appearance.

  9. ask for more than that by Chirs · · Score: 4, Insightful

    Ask for the original amount paid, plus money for your time and hassle setting up a new account and moving everything over to it.

    1. Re:ask for more than that by lurker1997 · · Score: 4, Insightful

      This guy paid for something and didn't get it. There is a pretty obvious and quantifiable loss that happened and he should be able to get his money back. This is pretty much the definition of the right kind of thing to sue over. Its not emotional damage or coffee on the crotch or hurting yourself when your robbing someones house or whatever nonsense people get on with. Its a real tort.

    2. Re:ask for more than that by RobinEggs · · Score: 4, Informative

      For the last time...that 'coffee on the crotch' thing people hold up as the prime example of frivolous lawsuits was probably the most justified lawsuit this country has ever seen.

      The woman had fucking third-degree burns throughout her crotch and thighs. A surgeon had to literally rebuild her labia and vagina. Hundreds of people had received second and third degree burns from McDonald's coffee in the years leading up to the suit, including instances when employees spilled the coffee on patrons. McDonald's specifically acknowledged even before that particular incident that the coffee was dangerously hot and unfit for consumption at the time of sale, yet still made a firm and specific corporate policy of setting every coffee maker to that temperature.

      It was categorical, institutional recklessness that severely injured hundreds of people over more than a decade, but when one woman actually sues and wins over this everyone dismisses her as a cash-grabbing crackpot. That's what lawsuits are for; when some entity is fucking people over and won't respond to any other pleading or incentive.

      Half of the 'frivolous' lawsuits out there are completely reasonable and proper grievances that corporations have sneakily re-framed as whiny bullshit. Because how dare the peons think there's an even playing field for them somewhere?! Courts are for corporations to get things done, not the people! Just because some jerk sues Dairy Queen over melted ice cream - and every comedian or 'human interest' journalist in the nation takes a crack at that moron - doesn't mean you can snidely dismiss every individual vs. corporate lawsuit without a second glance.

  10. "Lifetime" matchmaker site membership by wcrowe · · Score: 4, Funny

    I don't know what to say to the original poster, but I know of a matchmaking site that used to offer a "lifetime" membership. Think about it. How pessimistic are you if you buy a lifetime membership to a matchmaking site?

    --
    Proverbs 21:19
  11. new owner may need to honour preexisting contracts by Chirs · · Score: 4, Insightful

    I don't know how the contract law works in the USA, but I would expect that when one company buys another company any pre-existing contract agreements would still need to be upheld.

  12. Update by teidou · · Score: 5, Informative

    They are now offering a refund or 5 years of hosting. I'll probably take it and move on.

  13. Re:Recourse? probably not by petes_PoV · · Score: 4, Interesting

    It's not uncommon for this to happen and apparently, it's legal.

    A fitness centre near here sold "lifetime memberships" and after 5 years, cancelled them. They duly got taken to court and the judge ruled in favour of the fitness centre. You might possibly be able to argue that if the supplier had known at the time of selling these "lifetime" products that they would withdraw them after a short time, there was a fraud, or mis-seling, or false advertising - but it would be difficult to prove and probably not the case, anyway.

    This is just another phrase that changes its meaning where money and profit are involved. Just like "unlimited" (broadband), "free speech" and "our customers are important to us".

    --
    politicians are like babies' nappies: they should both be changed regularly and for the same reasons
  14. Re:Recourse? probably not by cpu6502 · · Score: 5, Insightful

    >>>The judge ruled in favour of the fitness centre.

    If you would like to speak to the judge, you can find him at the fitness center every Friday night, using his free gold pass.

    This seems like a scam to me. The reason you pay the outrageously high "life" prices of ~$1000 is because over the longterm (say: 15 years) it's cheaper than the annual rate (~$100). It's a bargain plus your loyalty is being rewarded.

    For companies to discontinue the membership means they actually charged MORE per year than the annual rate. If I did that I'd be called a scam artist like Mr. Charles Ponzi, but if corporations do it then it's somehow okay.

    --
    My AC stalker: " I personally agree with your posts most of the time, but that won't keep me from modding you troll"
  15. Re:Recourse Steam by Drafell · · Score: 4, Informative

    Except Steam have already made it publicly known that they have a procedure in place to ensure you don't lose access to games in the event that they have to close doors.

  16. Re:Recourse? probably not by Impy+the+Impiuos+Imp · · Score: 4, Insightful

    Never buy lifetime memberships. They are scams -- where do they get the money to keep business ging several years down the road? They haven't invested the money, I assure you. They have spent it.

    The business model is to take your money, party rock hard, then go out of business. This was the fraudulent business model of many fitness clubs when they exploded in popularity in the late 70s thru early 80s.

    When I see new MMORPGs with monthly pay-to-play offering "lifetime pass" options, I run for the hills, even as suckers sign up, fancying themselves getting a deal.

    That just says to me they realize they have a lemon on the way.

    --
    (-1: Post disagrees with my already-settled worldview) is not a valid mod option.