Imp Emissary said:
"Accept they never agreed to anything at all, so nothing would really change."
True, at first, but this could start up a foundation for a law to be made that does limit when a company can or can't force you to accept the terms of service if you didn't read it.
Yes, here all Microsoft had to do with the altered terms of service to have them become "legal" was never even look at them, but is that so much more than when we get a new terms of service for an update and click accept without really reading it?
However, this is all dependent on what the final legal statement is. It may not even make it that far. Hell, maybe he'll even be forced (or talked) into making a deal out of court.
They continued providing the service. Xbox live is provided via the EULA agreement, one of the parties proposed a change to the agreement. When a company updates the EULA your continued use is implied consent. If you send them notice of updating the agreement them continuing the service implies consent.
Say you pay a landscaping company to mow your lawn. You pay monthly, and decide that the rate is too high. So you send them a letter saying you are only willing to pay half, so they can accept the lower rate or discontinue the service. If they go ahead mowing your lawn you would rightfully assume they accept the new terms. Its an important concept in his case... its not just that they didn't refuse the change, they continued the relationship. If the letter makes it to the front desk and some secretary loses it that's not really the homeowners fault. His responsibility was to get the letter to the company, he did that. It doesn't legally matter that Microsoft read or did not read the letter, what matters it they implicitly accepted it by continuing a relationship after having been served with the new terms. The whole thing is stupid, but these companies DO things like this, Mr. Stebbins here just took it to an extreme so it would get attention.
Take a look at the changes in ITunes EULA. Once upon a time you bought a song for 99 cents and you could burn it to a CD. Then they decided to add DRM to only let you burn it three times. You have two choices, continue to use the software and accept getting less than you expected when you initially purchased, or quit using it and lose your money altogether.... Not exactly fair. Same thing as the PS3 linux thing, removed functionality that was understood to be there at purchase. We're just a few baby steps from game publishers tossing out an EULA change after a game has been out for a year asking for you to pay the list price again. Wanna keep playing? Pay for it again, we decided the license was only good for a year after the fact. Companies can and do push people around by changing EULA's. It seems contrary to me that so many would rally against someone trying to turn an abusive business practice onto the folks who came up with it.(not accusing you of this btw)