tancop
3 hours 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
an hour 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."
matsemann
2 hours 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
an hour 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.
Jcampuzano2
3 hours 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.
mtlynch
3 hours 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
an hour 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.
_def
2 hours ago
what was the disney+ incident? /gen
saghm
2 hours 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
ray_v
2 hours 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 hours 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
an hour 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.
thrance
an hour ago
> deadly mistakes like the Disney+ incident
Well, that led me down a wild rabbithole.
wat10000
2 hours 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.