Microsoft Class Action Says Xbox Live Gold Subscriptions are Suspended Without Reason

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An Illinois gamer is suing Microsoft claiming the tech giant violated consumer protection laws by suspending accounts of Xbox Live Gold Members without warning and then refusing to credit subscribers for the time service was suspended.

Xbox Live is an online multiplayer gaming and digital media delivery service which works with the Xbox 360 gaming console.

The service is available as “Xbox Live” and “Xbox Live Gold” and while signing up to Xbox Live is free, in order to play with others online and access other service features, a paid membership subscription of Xbox Live Gold is required.

Between Jan. 30, 2013 and Feb. 8, 2015, plaintiff James Maher says he separately purchased three Xbox Live 12-month Gold Memberships, equaling 36 months of paid Gold Membership service.

During the 36 months for which Maher had paid for Xbox Live Gold Membership, Microsoft reportedly suspended his membership services on at least 10 separate occasions without notice.

“Microsoft issued each suspension without notice or a chance to appeal, and accompanied the suspensions with a vague statement which set forth the alleged circumstances which induced Microsoft to suspend Plaintiff’s membership services,” the proposed class action lawsuit states.

While his Xbox Live Gold Membership was suspended, Maher says Microsoft not only disabled his Xbox Live sign-on, but suspended other account functionalities including online multiplayer play, live communication features, in-game and party chat, messaging, video communications, gameplay, broadcasting, sharing content, and Skype.

Maher contends he made numerous attempts to contact Microsoft in search of a specific reason as to why his account was suspended. However, Microsoft allegedly refused to provide the time, date, or any other details of the incidents which prompted the Xbox Live Gold service suspension.

“All all time relevant, Microsoft never informed Plaintiff of the exact basis for his suspension and Plaintiff was therefore unable to know how to prevent suspensions in the future,” the lawsuit states.

Furthermore, the complaint asserts that Microsoft never credited or refunded Maher’s 12-month Gold Membership account pro rata for the inability to use the Xbox Live Gold Membership features during the suspensions.

Maher seeks to represent a certified state Class comprised of all Illinois-based Microsoft consumers who “purchased an Xbox Live Gold Membership at any time between January 30, 2012 and the present and who (1) had their membership account suspended, and (2) did not receive any credit, refund, or extension of the Membership account.”

This is not the first time Microsoft has faced legal action over their Xbox Live Gold Membership. In 2011, the company was hit with a class action lawsuit in Washington state federal court over allegations it double-billed subscribers and then refused to refund money for one of the subscriptions.

Additionally, in 2012, Microsoft came under fire in a breach of contract class action lawsuit claiming it barred customers from their Xbox Live Membership if they had their Xbox 360 console repaired by a non-Microsoft technician.

Maher is represented by Kasif Khowaja of The Khowaja Law Firm LLC and James X. Bormes and Catherine P. Sons of the Law Office of James X. Bormes PC.

The Microsoft Xbox Live Gold Membership Class Action Lawsuit is Maher v. Microsoft Corporation, Case No. 1:17-cv-00753, in the U.S. District Court for the Northern District of Illinois, Eastern Division.