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Originally Posted by DawnFalcon
Yes, but they would then have to comply with the laws surrounding services, which are considerably more complex and restrictive than those for products. Which they don't want and don't do. They're taking the best of both worlds, and it's not legal.
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If you could be more specific and give me a concrete example, it would help greatly. I don't know UK laws, so I can't know how they are more complex and restrictive than normal commercial laws, and despite your efforts I still don't know what part of those laws they are not complying with. Can you please tell what are they doing
illegally?
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And sure - the no-refund clause. This is bluntly and totally illegal. When you terminate someone's service, you are required to return the balance to them. Not doing so is fraud.
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Ok, I'm ignorant of the UK laws, so I'll take for good that where you live such a clause is illegal. Where I live, it is not: the refund is granted only when you buy an item, not when you buy services; in the case of services, you're granted a refund only proportionate to what you have paid in advance and not yet benefitted. So, if I pay for a three years service and get kicked out after 2 years, I get a 1 year refund; but if I pay only each time I benefit of the service, I can't have a refund.
If you are 100% sure that the no-refund clause for XBL is fraudolent, then you can positively point this out to anyone who had been banned from XBL because an illegal clause voids the T&Cs, and any court will confirm that.