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Blockbuster Can’t Force Individual Arbitration

(CN) - A federal judge in Dallas denied Blockbuster's request to compel individual arbitration in a class action privacy case. The class claims that "when a customer rented a video from Blockbuster Online," the customer's video choice would show up on his or her Facebook page.

Blockbuster's terms and conditions state that "(a)ll claims, disputes or controversies ... will be ... determined by binding arbitration" and that Blockbuster can amend the terms and conditions "at its sole discretion ... at any time."

U.S. District Judge Barbara Lynn found Blockbuster's arbitration clause to be illusory because it allowed Blockbuster to make sudden changes to the terms and conditions, giving it unlimited power to influence the arbitration in its own favor.

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