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July 26, 2012 / Rabeh Soofi

Purchasers Beware: Microsoft’s New Terms and Conditions Will Ban Class Actions

Last Friday, Microsoft announced that purchasers of Microsoft products will now be banned from bringing any class actions against Microsoft, due to changes Microsoft is making to its Terms of Service.

Microsoft’s decision is made possible by a U.S. Supreme Court case that was decided last year, AT&T Mobility v. Concepcion, which allowed companies to prevent consumers from forming class action lawsuits.

Several months ago, Microsoft changed its Terms of Use for its X-Box Live service to eliminate class actions, and Microsoft’s legal team will be making the same changes to its other products and services in the coming months.

Microsoft’s legal team tried to make it seem as though this announcement was somehow positive for its customers, but it is hard to see how consumers could possibly be benefited by the move.  Consumers of Microsoft products will be prohibited from acting collectively in pursuing a class action to bring claims against Microsoft, for example, for defective or deceptive products and services.

If you have purchased software or products and are not certain of your rights against the manufacturer, please contact Khorrami, LLP for a confidential consultation.

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