Microsoft says that they have updated the Microsoft Services Agreement, which governs many of their online services - including Microsoft account and many of their online products and services for consumers, such as Hotmail, SkyDrive, Bing, MSN, Office.com, Windows Live Messenger, Windows Photo Gallery, Windows Movie Maker, Windows Mail Desktop, and Windows Writer.
The detailed email from Microsoft is as following:
The updated agreement will take effect on October 19, 2012. If you continue to use our services after October 19th, you agree to the terms of the new agreement or, of course you can cancel your service at any time.
We have modified the agreement to make it easier to read and understand, including using a question and answer format that we believe makes the terms much clearer. We also clarified how Microsoft uses your content to better protect consumers and improve our products, including aligning our usage to the way we're designing our cloud services to be highly integrated across many Microsoft products. We realize you may have personal conversations and store personal files using our products, and we want you to know that we prioritize your privacy.
Finally, we have added a binding arbitration clause and class action waiver that affects how disputes with Microsoft will be resolved in the United States.
So as a thumb rule read the new Microsoft Services Agreement here to familiarize yourself with the changes they have made. Do not let the terms and conditions page be such which is never read and make sure that you read all such documents before subscribing for any service. Probably they will also go the Google way and will have one terms and condition policy which will be applicable for its all subsidiary policies.