inKLine Media

Starting May 7th, changes went into effect regarding Second Life’s Terms of Service (TOS).  Before logging in, residents were compelled to read and agree to the new TOS.

Among the major changes noted in Second Life’s official notice, it amended a portion of the TOS regarding currency exchanges.  The release said: “to better protect Second Life users against fraud, the updated Terms of Service make it clear that trading of Linden dollars (L$) on exchanges other than the LindeX, Second Life’s official L$ exchange, is not authorized or allowed.”

The exact rule reads as follows:

5.3 There are other exchanges that are operated by third parties on which Linden dollars are exchanged.

Third party exchanges are not authorized by Linden Lab and Buying or Selling Linden dollars on third-party exchanges are not authorized transactions. Third party exchanges are wholly distinct from both the LindeX exchange and Linden Lab and they have no affiliation with Linden Lab. We do not endorse or otherwise guarantee the legitimacy of the Linden dollar transfers offered on them, and we are not liable for purchases of such Linden dollars. Buying or Selling Linden dollars anywhere other than the LindeX is done so solely at your own risk. If you Buy Linden dollars that are traced to unauthorized credit card activity or other fraudulent activity, we will recoup these Linden dollars from your Account. The only authorized exchange is the LindeX.

It remains unclear whether the language “not authorized or allowed” outright bans currency exchanges or simply relieves Linden Lab from any legal responsibility, as has been its historic stance.

Weighing the idea of a ban, two sources told SL Business Review that this would not go over well in European markets where many prefer to use debit cards through third-party exchanges.  On the other hand, one keen observer of business noted that sole control of the exchange of currency this would generate millions for LL through the Lindex.

SLBR will try to find out more about the exact meaning of this language and the repercussions for exchange owners.