After the change in Terms of Service (TOS) by Google, now it’s time for Microsoft. They have proposed a new TOS mainly concerning policy on privacy and dispute settlement issues. Microsoft informed its clients about the changes in policy via mail, saying that the new TOS will in effect from October 19, 2012.
Compared to the previous policy it can be said that the new policy is going to benefit Microsoft at least in two ways. The first case is about the usage of customer data. The new policy has granted Microsoft the authority to use customer data across its cloud properties. The previous user data usage policy that such data is subject to be used “solely to the extent necessary to provide the service” is replaced by the announcement that Microsoft reserves the right to use user data to “provide, protect and improve Microsoft products and services”. That means Microsoft gets the authority to extract content from Hotmail, SkyDrive and Office Suite to personalize Bing search results for individual users.
Again, because of the new policy US users will no longer be able to file any lawsuit against Microsoft. They have to settle disputes with arbitration rather than litigation. The newly added class action waiver contract also gives Microsoft safety from all class action suits. Previously such changes have been noticed in the TOS of Sony and Netflix.
Source: The Verge