Though the Xbox Live Dashboard update has finally been made available to the public after a slight delay, there are still some who are reporting problems logging back onto the service after completing the download. While we’re sure that Microsoft is addressing the problem, a new issue has come up that should concern any Xbox Live user living in the United States.

See, as part of the Terms of Use for Xbox Live, Microsoft has created a few new clauses that, in essence, say users cannot sue or join in a class action suit against Microsoft. It’s very similar to the clause that was added to the Sony terms after the PSN hack, but it’s still pretty unsettling.

Those who are interested in reading the full terms of the new contract can either read through them after downloading the update or view them here, and should pay particular attention to sections 18.1.4 and 18.1.6. There’s quite a bit of legal language at play in those sections, which do allow for some leeway, but essentially it’s Microsoft trying to escape legal action should anything go wrong with their service.

As Kotaku points out, Xbox Live users still have the right to dispute issues with Microsoft, but can only really do so in private arbitration, which is much more difficult to go through successfully. Typically, those private arbitration situations result in the court finding for the company or awarding minimal compensation.

So, while the new Dashboard update was meant to make life better for the Xbox Live user it may have also introduced a few new hardships for them when it comes to settling disputes with Microsoft. It’s not like the same thing wasn’t seen before with Sony, and hasn’t been passed down by publishers, it’s just disappointing to see another company jump on the “please don’t sue us” bandwagon.

There is still a way for US users (Xbox Live members outside of the US don’t have to worry about this issue) to opt out if they so desire by sending a letter to Microsoft, so all hope isn’t lost. And hey, the Dashboard’s new Kinect integration is pretty neat, so there’s that.

How do you feel about Microsoft adopting this new “don’t sue us” clause into their terms of service? Is it just part of the process nowadays or a bigger problem?

Source: Microsoft (via Kotaku)

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