New PSN Terms of Service Forbids Class Action Lawsuits

Sony Computer Entertainment today issued changes to the PlayStation Network's Terms of Service that seek to limit member participation in legal action against the company. These new terms are likely a direct result of the class action lawsuits brought against the company in the wake of the PlayStation Network hack that occurred in April, 2011; they require that members agree to settle legal disputes with the company via single party lawsuit only, and not as part of any class action:

Class Action Waiver.  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 LEGAL 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.

The updated terms of service also contain acknowledgment by Sony that the requirement to foreswear participation in any class action suit filed after August 20, 2011 may not have a legal basis:

If any clause within this Section 15 (other than the Class Action Waiver clause above) is found to be illegal or unenforceable, that clause will be severed from this Section 15, and the remainder of this Section 15 will be given full force and effect.  If the Class Action

Waiver clause is found to be illegal or unenforceable, this entire Section 15 will be unenforceable, and the Dispute will be decided by a court and you and the Sony Entity you have a dispute with each agree to waive in that instance, to the fullest extent allowed by law, any trial by jury.

The new agreement is presented to all users when they login to the PlayStation Store. Members who decline to accept these changes will be removed from PSN membership and any relevant fees refunded. Members who do agree to the new terms will have 30 days to rescind their agreement to them. For a full understanding of these changes, the new terms of service have been posted in full onSony's official site.
source:2DayBlog.com