Exactly, the harmed party is not subject to binding arbitration. The harmed party isn't going to bring someone to court for their bad devices - nobody has enough assets to be worth suing (other than perhaps to compel them cooperate with the discovery process) . However the company that made those devices is worth suing.
Alibaba is an interesting question though - if the device is from China (or some such) it isn't clear what the courts can do...
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AFAIK most people's contract with their ISP includes fine print that forbids a lot of the nasty things these IoT and "smart" devices do.
Doesn't matter from the point of view of a lawsuit from an outside attacked party.
IANAL, but a harmed party outside of the 'binding arbitration' nonsense might be a way work around arbitration and drag the company into a court.
Exactly, the harmed party is not subject to binding arbitration. The harmed party isn't going to bring someone to court for their bad devices - nobody has enough assets to be worth suing (other than perhaps to compel them cooperate with the discovery process) . However the company that made those devices is worth suing.
Alibaba is an interesting question though - if the device is from China (or some such) it isn't clear what the courts can do...
What do they do that you think is prohibited by a residential ISP contract?
Running a proxy server and running a botnet, at least.