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Sony is facing a potential class action lawsuit from New Jersey gamers who allege that the terms and conditions of PlayStation websites are unfair and illegal under state law.
According to the Garden State’s Truth-in-Consumer Contract, Warranty and Notice Act, it is illegal to have a contract that nullifies any “clearly-established” consumer right. The PlayStation class action lawsuit holds that the Terms of Service of for PlayStation’s websites require users to relinquish certain consumer protections, in violation of the TCCWNA.
The Sony class action lawsuit holds that PlayStation’s Terms of Service purports to be a binding contract, which requires anyone using the website to give up certain rights. For example, the complaint cites the following text of the contract:
“To the fullest extent permitted by law, SIEA [Sony], its officers, directors, shareholders, employees, representatives [sic], and agents disclaim all warranties, express or implied, including including the implied warranties and conditions of merchantability, fitness for a particular purpose and non-infringement, in connection with the Sites and your use of them.”
The PlayStation class action lawsuit alleges that these kinds of sweeping disclaimers are not permissible under New Jersey law, since these terms argue that Sony couldn’t be held accountable for unsafe products, damages, and vulnerability to getting hacked—the latter of which has actually happened to the PlayStation network. The TCCWNA makes it illegal for a contract to nullify the consumer rights and protections associated with warranties and guarantees of safety. The TCCWNA states that a contract cannot waive these rights and allows for statutory damages when a contract tries to undermine that.
The PlayStation class action lawsuit holds that this and other sections of the Terms of Service try to get website users to give up consumer rights. For example, the lawsuit alleges that the terms of service ask website users to waive their rights to sue in the event that sensitive website data is compromised or other harm comes to them. Under the TCCWNA, New Jersey residents are allowed to sue for statutory damages whenever a contract tries to undercut consumer rights.
A wave of TCCWNA lawsuits have been washing through New Jersey courts, making similar allegations about the terms of service of websites for Bed Bath & Beyond, Burlington Coat Factory, Facebook, and Toys ‘R’ Us. On many consumer websites, the terms of service state that anyone who uses the website has, in effect, entered into a contract under the terms of service.
The potential Class Members of the Sony Playstation lawsuit include any New Jersey residents who used the PlayStation websites, including those that made purchases on the website.
The potential class action lawsuit is led by Plaintiff Lawrence Farrell, who is seeking a statutory civil penalty of less than $100 for each Class Member for each violation of the TCCWNA. In the case of Ferrell, he made several purchases through the PlayStation website from his New Jersey home.
The plaintiffs are represented by Robert J. Berg Esquire and Joanna Sandolo of Denlea & Carton LLP.
The Sony PlayStation Class Action Lawsuit is Lawrence Farrell, et al., v. Sony Corporation of America, et al, Case No. 2: 16 – cv – 04391, filed in the United States District for the District of New York.
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One thought on PlayStation Class Action Alleges Unfair, Illegal Terms of Service
William Wells, I have used this site for years. How do I apply to be included? Thank you for your time.