If Sony Playstation users were characters in a video game, they just lost another life.
The video game company recently updated the terms of service for its online platform, Playstation Network, to include a clause that waives a user’s right to take Sony to court or participate in a class action lawsuit against the company.
The change comes after an unknown entity shut down Playstation Network for 23 days in April and stole 77 million users’ personal information, possibly compromising their credit card information in the process.
Sony eventually admitted that while credit card data was encrypted, other user information was not, including user passwords. It took Sony almost one week after the incident had occurred to inform users that their personal information might have been violated, even though the service was closed down.
Kristopher Johns of Birmingham, Ala., filed a lawsuit on behalf of all Playstation users in response to the hacking, alleging Sony failed to encrypt data and provide proper firewalls to prevent intrusion, failed to provide prompt warnings about the security breach, and failed bring the Playstation Network service back online in a reasonable time.
Another lawsuit filed by Natasha Maksimovic of Canada claims damages up to $1 billion Canadian to provide credit monitoring and identity theft insurance after the break-in.
The updated terms come hidden amidst a move as Sony’s American branch, Sony Network Entertainment American, transfers its online service to Sony Network Entertainment International. It reads:
“Other than those matters listed in the Exclusions from Arbitration clause (small claims), you and the Sony Entity that you have a Dispute with agree to seek resolution of the Dispute only through arbitration of that Dispute in accordance with the terms of this Section 15, and not litigate any Dispute in court. Arbitration means that the Dispute will be resolved by a neutral arbitrator instead of in a court by a judge or jury.”
Gamers who wish to continue using the Playstation Network to play online games, purchase software through Playstation’s online store or connect with friends must agree to the terms. Users can opt out of the waiver by sending a letter to Sony’s Los Angeles office within 30 days of signing the new terms, but as only a small percentage of users read these legal documents, not many will do so.
Sony seems to have an eye for the details when writing terms of service agreements. The company should instead focus that eye on adequately protecting its users’ information, and informing them promptly when it has failed to do so.
