Sony Hit with Class Action Over “No Class Action” Clause

We saw this one coming. Back in September, TopClassActions.com reported that Sony changed its terms of service through a mandatory PlayStation Network update that removed PSN members’ right to file or be part of a class action lawsuit against Sony and its partners. That didn’t sit too well with gamers, who have fired back with a federal class action lawsuit claiming Sony unfairly changed the terms of use for its PlayStation 3 games, forcing them to waive their rights to sue in order to keep playing.

According to the Sony PlayStation class action lawsuit, Sony forced even longtime owners of the game system to agree to the new terms – including mandatory arbitration – if they wanted to keep using Sony’s online gaming and entertainment network. The mandatory arbitration clause was purposefully hidden in a 21-page-long new terms of service contract in order to discourage members from actually reading the entire contract and discovering they were giving up their rights to sue, the lawsuit says.

“To further discourage users from carefully reviewing the September 2011 PSN terms of use, including the arbitration clause and class action waiver, defendants prevented users from easily accessing the terms on the Internet,” which had previously been made available online to allow consumers to review and print the terms of use. “The September 2011 terms of use could only be located if a user expended significant time navigating through multiple Sony websites,” the lawsuit says.

 

The Sony PlayStation class action lawsuit points out numerous other hurdles Sony erected, including a difficult “opt out” process that forced customers to first agree to the terms of use, and then send a written notice to Sony’s legal department within 30 days that included a “clear statement that you do not wish to resolve disputes with any Sony entity through arbitration.”

Sony further discouraged uses from invoking the arbitration clause by including language that makes it difficult for users to recover their attorneys’ fees.

“Even if a user prevails in arbitration against any defendant or other Sony entity, if the claim is less than $75,000, a user can only recover his or her attorney’s fees if he or she has first provided notice to, and negotiated in good faith with, the defendant before pursuing arbitration,” the class action lawsuit points out.

The Sony PlayStation terms of service class action lawsuit is seeking restitution, declaratory judgment, an injunction, costs and damages for breach of faith and fair dealing, and unfair competition.

A copy of the Sony PlayStation Terms of Service Class Action Lawsuit can be read here.

The case is Stephen Fineman v. Sony Network Entertainment International LLC, et al., Case No. 11-cv-05680, U.S. District Court, Northern District of California.