tancop
2 months ago
> The motion says the PlayStation Terms of Service put a binding arbitration agreement and a class action waiver in Section 14, and quotes the opt-out clause: ... > The clause requires a user who does not wish to be bound to notify Sony in writing within 30 days of accepting the agreement.
Binding arbitration on individuals should be illegal, full stop. The only use case is taking away people's rights as consumers and workers. Or dodging responsibility for deadly mistakes like the Disney+ incident.
This "opt out" mechanism is made to let Sony lawyers argue that accepting it was your choice so it can't be struck down as forced, even if 99% of users have no idea it exists, by design. Evil all the way down.
BeetleB
2 months ago
Binding arbitration when there is a significant power imbalance should be illegal. If it's between two similarly abled parties (e.g. two individuals), it should be fine.
I studied a bit of this in a university course. Between a lot of organizations, binding arbitration is more efficient (i.e. cheaper) than the legal system. If your company wants to make a deal with another company, binding arbitration often makes sense.
Ditto for 2 individuals: If they had to go through the legal system, it could end up being a war of attrition - the one who has more money to pay lawyers wins. Binding arbitration is a way to "level" that field.
The down side (at least in many, if not all, states) is that you have little recourse if the arbiter is totally unfair. With the legal system, you can appeal, etc.
But between an individual and a large company - no way!
In my last job, the (very big) company automatically enrolls new employees into a binding arbitration agreement, but they do give a timeline to opt out. I was surprised I had that option. I even paid a lawyer to review the docs. He said "Yep, you can (and should) opt out. I'm surprised they even gave you that option."
braiamp
a month ago
Binding arbitration shouldn't be a thing. If we want to go to arbitration is because we are in the same level of negotiation. One side imposing arbitration or any other kind of restriction on the mechanism that the individual or organization has to redress issues shouldn't be a thing
BeetleB
a month ago
The counterargument is that if you don't have binding arbitration, you can be constantly worried that the other party will drive you bankrupt with frivolous legal proceedings, and that fear discourages collaboration. A binding arbitration puts that fear at ease.
AngryData
a month ago
To me that is a flaw in the justice system that needs to be resolved by legislation and within the justice system, not something that should have some bs extralegal work around.
pwdisswordfishq
a month ago
Ah, yes, "fixing" the broken American rule for attorneys' fees by corrupting the justice system even further.
LocalH
a month ago
Banning binding arbitration means that class actions can happen.
BeetleB
a month ago
That's irrelevant to the point I'm making. Class action is, almost by definition, a case where there is unequal power.
casey2
a month ago
We have a legal system precisely because it's inefficient. Rather than arbitration lets just not have any laws, functionally equivalent and cheaper.
Having no enforcement would be cheaper too. What makes arbitration preferable is whatever meaningful protection it provides. So what protections does it give consumers in this case, and why are those adequate? "It's more efficient" doesn't answer that. There are practical limits to the number of individual claims Sony can lose. Of course if it's within their rights Sony would very much want to steal ~$1,000 from everyone that uses their services.
This all assumes that the arbitrator isn't getting kickbacks which they are more likely to than the traditional legal system.
matsemann
2 months ago
In my country, many laws state that the consumer (or "weak" part) can not sign away their rights, any contract with stipulations regarding that would void that clause. Feel like that should be the norm. Shouldn't be able to lose your consumer rights just by pressing a button, then the rights are worthless if everyone just have a huge TOS / EULA for any service covering their asses.
matherial
2 months ago
Similarly to many other countries, the US has a concept of "adhesion contracts" - essentially, contracts where you have no realistic opportunity to negotiate the terms, and your rights are constrained much more than the rights of the party imposing these terms.
Courts often look at these contracts differently, but around the world, they allow them to exist because they are useful. A good example are the "terms of service" for public or private transit. If the carrier can't define some common-sense rules, like that you can be kicked out or fined for not wearing pants and playing bagpipes on the bus, it'd complicate things.
The legal standard is basically that the rules hold unless they're unreasonable or unconscionable. But of course, what's seen as reasonable depends on the country, the state, and the judge.
jMyles
a month ago
> not wearing pants and playing bagpipes on the bus
The problem for some of us here is that we're left without a viable transit option, as the yes-pants-no-bagpipes model of transit essentially has a state-sanctioned monopoly.
I suspect if market forces were allowed to operate in this area, we'd see fewer pants and more pipes.
throwyawayyyy
a month ago
Not everyone who isn't wearing pants is playing bagpipes, but almost everyone who is playing bagpipes isn't wearing pants.
throwaway85825
a month ago
What do you have against bagpipes?
smcin
a month ago
no-true-Scotsman...
marcosdumay
a month ago
Honestly, nowadays I'm tending towards the idea that huge TOS or EULAs (at all) should be criminalized.
It's ridiculous that rich people just get to use the justice system as a goon to harass normal people.
Jcampuzano2
2 months ago
This is also one of those scenarios similar to subscription or membership cancellation where we should not allow accepting/signing up for something require using an entirely different method of communication to cancel/opt out.
Requiring written notification while the TOS being accepted entirely via digital means should be illegal.
Not to mention I think its insane that we allow companies to be able to dictate how citizens are allowed to utilize their legal system.
greyface-
a month ago
> taking away people's rights as [...] workers
I was recently reviewing a collective bargaining agreement (after being approached by a campaign to add my job category to an existing union at my employer), and was surprised to find that it forced arbitration for all employee disputes, with no opt out. It's not just employers that use binding arbitration to take away workers' rights.
mtlynch
2 months ago
> Binding arbitration on individuals should be illegal, full stop. The only use case is taking away people's rights as consumers and workers. Or dodging responsibility for deadly mistakes like the Disney+ incident.
Hijacking to link to another website that has good information about how binding arbitration is stacked against the consumer/employee:
cortesoft
2 months ago
Binding arbitration as an abstract concept seems fair (really, the entire court system is a complicated system for binding arbitration)
However, in practice it isn’t fair at all.
LocalH
a month ago
Big capitalism has a way of taking things that should be fair and stacking the deck in their favor.
wat10000
2 months ago
Access to the legal system is a fundamental right. It should not be possible to sign it away, any more than you can sign away your right to life or liberty.
Terr_
a month ago
A related outrage: Companies that are happy the law enshrines their private rules/standards, but they want to charge you for access.
https://www.eff.org/deeplinks/2024/04/congress-no-one-should...
fineIllregister
a month ago
How would anyone ever settle a case? Also, it's pretty easy to sign away your life and liberty: join the military.
wat10000
a month ago
I don't see signing away your right to access the legal system as an essential part of a settlement. You could just sign a settlement that says, here's what happened, here's the remedy we've agreed to. And then if one party decides to sue later on, the existence of the settlement could be used by the other side as extremely strong evidence that the matter was already concluded to the mutual satisfaction of both parties, and the lawsuit should be dismissed. But it would be "this was already handled" rather than "the plaintiff gave up their right to address this matter in court."
As far as the military goes, that's very much a special case, and it should remain so. The fact that you can give up certain fundamental legal rights by joining the military is not an argument for being able to give up certain fundamental legal rights by accepting a click-through agreement from Sony.
chowells
a month ago
It's not difficult to communicate the difference between losing all future rights and settling a dispute over an incident that has already happened. I don't know why you'd act like it's a huge challenge to understand the difference.
But yeah; don't join the military.
throwaway85825
a month ago
Users should not be held to terms they were unaware of. Companies should be required to collect digital signatures and initials for every unusual term.
eru
a month ago
Being able to restrict yourself is exactly what the right to enter contracts is.
Just like being able to commit yourself to showing up to work everyday restricts your freedom. But it's essential to getting the other party to give up something in consideration.
Of course, you can argue that consumers should be treated like legal babies that can't enter into agreements.
ndsipa_pomu
a month ago
There's a difference between restricting your freedom and restricting your rights. When you enter an employment contract, you agree to give up some freedom in return for a salary etc. but it doesn't take away any of your rights. You still have the right to life, liberty etc. You still have the right to not turn up to work, though too much of that will likely cause them to terminate your employment. An employment contract that removes rights is typically not legal in sane countries (e.g. agreeing to become a slave).
eru
a month ago
In Germany your employment contract can have Vertragsstrafen, ie the contract can say that if you do something you need to pay a penalty even above and beyond damages.
But in any case, employment contracts are weirdly restricted in many places, exactly because lawmakers think workers are metaphorical babies.
You can have a look at contracts between equals to see that being able to restrict yourself is important.
ndsipa_pomu
a month ago
> because lawmakers think workers are metaphorical babies.
To be fair, there's a long history of abusive employers, so it's wise to try to tilt the law in favour of the employee as otherwise they get exploited even more than usual. The nature of employment is typically skewed as employers will have a lot more power than the employees - that's why Unions were invented to try to redress that balance.
> You can have a look at contracts between equals to see that being able to restrict yourself is important.
There's an important distinction between restricting yourself and signing away inalienable rights. You can certainly agree to restrict your speech so as to not embarrass your employer or give away secrets, but signing away your right to liberty is different.
eru
a month ago
You give workers more power by making sure there's plenty of competition between employers, and plenty of other outside options for workers.
See eg how here in Singapore we have no minimum wage and basically no unions worth that name, and yet we have some of the highest wages in the world.
> There's an important distinction between restricting yourself and signing away inalienable rights. You can certainly agree to restrict your speech so as to not embarrass your employer or give away secrets, but signing away your right to liberty is different.
Granted for the sake of argument. I don't see what that has to do with binding arbitration over licensing of some computer games?
ndsipa_pomu
a month ago
> You give workers more power by making sure there's plenty of competition between employers, and plenty of other outside options for workers.
In theory that should work, but I have heard of U.S. companies that try to use non-compete clauses in employment contracts to prevent workers from being able to exercise their right to work in the same industry for a different company.
> here in Singapore we have no minimum wage
Just looked that up as I am not familiar with Singapore (apart from half a day due to airplane issues) and it appears that there is instead a sector specific Progressive Wage Model (PWM) that is mandatory for some of those sectors (e.g. food, retail, cleaning).
> I don't see what that has to do with binding arbitration over licensing of some computer games?
It's the notion of giving up your right to legal redress if Sony suddenly revokes your license to use what you've already paid for.
eru
a month ago
You paid for exactly what the license agreement says. And that includes that Sony can pull the plug.
If you still pay, that's on you.
ndsipa_pomu
a month ago
On the one hand, I agree that consumers should be better informed, but on the other hand, it may not be considered legal in some jurisdictions to include such a clause. The argument would be that no-one in their right mind would agree to pay someone for a license that could be removed at any point for no redress - the consumer clearly did not understand or read that part. It's usually not legal to include "hidden" clauses in contracts that go against what people would generally accept and agree to.
happymellon
a month ago
> See eg how here in Singapore we have no minimum wage
The US does as well if they can pretend you made it up with "tips".
The reality is that staff then just work for peanuts.
salawat
a month ago
>Being able to restrict yourself is exactly what the right to enter contracts is.
Not when only one person gets to write the contract and terms are take-it-or-leave-it. If there is no chance to negotiate, it is clearly little more than the wealthy abusing the less wealthy to their own advantage.
eru
a month ago
If you don't like the burger at McDonald's, you go across the street to Burger King. Lots of power for the customer, even though the offer is take it or leave it.
salawat
a month ago
Illusion of choice when Burger King & McD's end up under the same umbrella company run by the same fucking people. Your answer tries to put the onus on the individual, when those who replicate legal fiction are busy shaping the field of choice to their advantage.
At some point, the money doesn't flow anymore to the people who refuse to play the extractive game that causes problems in the first place.
kajman
a month ago
I was once a juror during a very vindictive two day civil trial against what was essentially a hobby business. I left with a newfound respect for binding arbitration.
My feelings are different where there's grave power imbalances like you describe, but there's very little about dealing with a large corporations that is just or dignified these days.
RugnirViking
a month ago
You were a juror during a civil trial? Is that a thing? Where?
pxx
a month ago
https://en.wikipedia.org/wiki/Seventh_Amendment_to_the_Unite...
> In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise re-examined in any Court of the United States, than according to the rules of the common law
47/50 states also provide for this right in their constitutions. the remaining three don't have it in their constitution but still have legislation or rules supporting it
RugnirViking
a month ago
Thanks! Interesting, you can perhaps tell I'm based in Europe, seems like lots of countries don't have that here.
Seems like probably a good feature of American justice?
user
a month ago
kstrauser
a month ago
And in any circumstances, the ludicrous notion of adding a contract after a purchase is made is unconscionable.
You buy a car. You pay cash. It’s yours. Afterward, the seller says “oh, and you have to agree to these terms before you’re allowed to start it.” Proper response: fuck off, I already paid you. It’s the same here. If you want to apply extra terms and conditions, negotiate them before the conclusion of the purchase. Anything afterward should be utterly laughed out of court.
onefiftymike
a month ago
My favorite was some (probaby Microsoft) boxed software I got in the 90s. The top of the box had a big warning that by opening the box you agreed to the terms of service that were IN the box.
kstrauser
a month ago
Good grief. "Bet I don't!"
b3lvedere
a month ago
Microsoft CD-ROM cases (jewel cases) were cool. There was this huge red sticker applied on it which said you wil agree to all terms and/or could not refund te product if this sticker was damaged.
Normal human beings had to tore the sticker in order to get the CD-ROM and install Windows, so they automatically 'agreed' to the TOS.
Until it was found out you can actually open a jewel case at the other side by carefully disonnecting the little plastic lids on the other side, thus never damaging the sticker.
kstrauser
a month ago
I remember this, and my stubborn side rejoiced in the hack.
amatecha
a month ago
Yeah, I bought an NVIDIA Shield, took it back to the store after I got it home and found out you literally can't use it without signing into a Google account (and this wasn't mentioned on the outside of the package).
cwillu
a month ago
A friend bought a rowing machine; turns out you can't use the fancy magnetic resistance element without agreeing to the app's terms and entering a credit card. I really tried to convince them to return it…
kstrauser
a month ago
Ugh. Yeah, I'd have that back at the store an hour later. I did not agree to this before handing over my money, therefore the sale was fraudulent.
eadler
a month ago
I agree with you to the point that I wrote this https://arbitrationinformation.org/docs/problems/
_def
2 months ago
what was the disney+ incident? /gen
saghm
2 months ago
Disney argued that the family of a man who died at one of their parks couldn't sue because he had signed up for Disney+, which has binding arbitration terms: https://fortune.com/2024/08/15/disney-wrongful-death-lawsuit...
This pretty much flies in the face of what any reasonable person would think the law should allow IMO
user
a month ago
user
a month ago
ray_v
2 months ago
https://www.nbcnews.com/news/us-news/disney-says-man-cant-su...
Guest died from allergic reaction despite informing staff multiple times of the risk, but the case was dismissed because they had signed up for Disney+ years prior.
chunky1994
2 months ago
The case wasn't dismissed because of the arbitration clause. Disney dropped the argument after they got severely lambasted in public over the absurdity of the defense. It was dismissed later by the plaintiff (so there was likely some settlement)
AlexandrB
2 months ago
I don't think this is the last time we will see this argument. Disney has a lot of value in brand equity to protect so it made sense for them to back away, but a "bad guy" company that's already regarded with distrust will probably go all in on this in the future.
Anthony-G
a month ago
Here’s a decent up-to-date report on this (now-resolved) case: https://www.allergicliving.com/2026/03/03/lawsuit-against-di...
Since I stopped being a poor student, I pay for media that I consume so that the creators can continue to create. I told my wife that I’d renew my Disney+ subscription after the clocks change and we have less hours of daylight. But now I think it’s morally wrong to give Disney any money – even if they do make great shows like Andor.
Terr_
a month ago
Somehow I'd never encountered that shorthand before, so for anyone else wondering it's probably intended as the opposite of "/s", genuine rather than sarcastic.
opan
a month ago
I once saw a whole list of these like /j for joking and such, but they don't seem to be commonly used and it often feels forced when I do come across them. Maybe they're more common in certain communities.
thrance
2 months ago
> deadly mistakes like the Disney+ incident
Well, that led me down a wild rabbithole.
dathinab
a month ago
it is, just not in the US