Out-Law News 1 min. read

Software giant's terms of service restricts users' redress rights


Electronic Arts (EA) is asking US customers to agree to a new user contract that restricts their rights of redress.

EA said that customers that accept its terms of service waive their right to a jury trial or participation in a class action lawsuit other than in certain circumstances. Customers dissatisfied with EA's response to complaints will generally only be able to resolve their disputes through a "binding arbitration" process, the software company's updated agreement said.

Class action lawsuits are common in the US, where lawyers will earn large fees for organising many similarly-affected people into bringing proceedings against organisations.

"If you and EA are unable to resolve a dispute through informal negotiations within 30 days after receipt of the Notice of Dispute, either you or EA may elect to have the dispute finally and exclusively resolved by binding arbitration," EA's updated terms of service said.

"Any election to arbitrate by one party shall be final and binding on the other. You understand that by this provision, you and EA are foregoing the right to sue in court and have a jury trial," the computer game manufacturer's updated contract said.

"You and EA agree that any arbitration shall be limited to the dispute between EA and you individually. To the full extent permitted by law, no arbitration shall be joined with any other; there is no right or authority for any dispute to be arbitrated on a class action-basis or to utilize class action procedures; and there is no right or authority for any dispute to be brought in a purported representative capacity on behalf of the general public or any other persons," it said.

"You and EA agree that each may bring claims against the other only in your or its individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding. Further, unless both you and EA agree otherwise, the arbitrator may not consolidate more than one person's claims, and may not otherwise preside over any form of a representative or class proceeding. If this specific provision is found to be unenforceable, then the entirety of this arbitration provision shall be null and void," it said.

The contract provisions do not apply to customers in EU member states, Switzerland, Russia or Quebec.

EA is not the first company to change the terms of its contract to reduce customers' redress rights. Earlier this month Sony changed the terms and conditions of its PlayStation Network and asked users to sign away their right to collective redress, including through class action lawsuits.

A contract law expert with Pinsent Masons, the law firm behind Out-Law.com, said that Sony's changed contract clause may not be upheld in a UK court.

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