Terms of service
Terms of service are the legal agreements between a service provider and a person who wants to use that service. The person must agree to abide by the terms of service in order to use the offered service. Terms of service can also be merely a disclaimer, especially regarding the use of websites.
Usage
The Terms of Service Agreement is mainly used for legal purposes by companies which provide software or services, such as web browsers, e-commerce, web search engines, social media, and transport services.A legitimate terms-of-service agreement is legally binding and may be subject to change. Companies can enforce the terms by refusing service. Customers can enforce by filing a lawsuit or arbitration case if they can show they were actually harmed by a breach of the terms. There is a heightened risk of data going astray during corporate changes, including mergers, divestitures, buyouts, downsizing, etc., when data can be transferred improperly.
Content
A terms of service agreement typically contains sections pertaining to one or more of the following topics:- Disambiguation/definition of key words and phrases
- User rights and responsibilities
- *Proper or expected usage; definition of misuse
- *Accountability for online actions, behavior, and conduct
- *Privacy policy outlining the use of personal data
- *Payment details such as membership or subscription fees, etc.
- *Opt-out policy describing procedure for account termination, if available
- *Arbitration detailing the dispute resolution process and limited rights to take a claim to court
- Disclaimer/Limitation of Liability clarifying the site's legal liability for damages incurred by users
- User notification upon modification of terms, if offered
- 57 of the 71 had disclaimer clauses,
- 51 let the company change terms,
- 34 allow data disclosure in certain circumstances,
- 31 require consumers to indemnify the company,
- 20 promise not to sell data.
- 91% disclaimed warranties of merchantability or fitness for purpose or said it was "As is"
- 92% disclaimed consequential, incidental, special or foreseeable damages
- 69% did not warrant the software was free of defects or would work as described in the manual
- 55% capped damages at the purchase price or less
- 36% said they were not warranting whether it infringed others' intellectual property rights
- 32% required arbitration or a specific court
- 17% required the customer to pay legal bills of the maker, but not vice versa
- 27 specified the law to be used,
- most specify that consumers can claim against the company only in a particular city in that jurisdiction, though often the company can claim against the consumer anywhere,
- some require claims to be brought within half a year to 2 years,
- 7 impose arbitration, all forbid illegal and objectionable conduct by the consumer,
- 13 can amend terms just by posting changes on their own website,
- a majority disclaim responsibility for confidentiality or backups,
- most promise to preserve data only briefly after terminating service,
- few promise to delete data thoroughly when the customer leaves,
- some monitor the customers' data to enforce their policies on use,
- all disclaim warranties and almost all disclaim liability,
- 24 require the customer to indemnify them, a few indemnify the customer,
- a few give credits for poor service, 15 promise "best efforts" and can suspend or stop any time.
Readability
Among the 500 most-visited websites which use sign-in-wrap agreements in September 2018,- 70% of agreements had average sentence lengths over 25 words,
- median FRE score was 34
- median F-K score was 15 years of school
- median and mean Flesch scores were 33 in both years, with a range from 14 to 64 in 2003, and from 15 to 55 in 2010
- median number of words rose from 1,152 to 1,354, with range of 33 to 8,406 in 2003, and from 106 to 13,416 in 2010
Public awareness
Clickwrapped.com rates 15 companies on their policies and practices with respect to using users' data, disclosing users' data, amending the terms, closing users' accounts, requiring arbitration, fining users, and clarity.
Terms of Service; Didn't Read is a group effort that rates 67 companies' terms of service and privacy policies, though its site says the ratings are "outdated". It also has browser add-ons that deliver the ratings while at the website of a rated company. Members of the group score each clause in each terms of service document, but "the same clause can have different scores depending on the context of the services it applies to." The Services tab lists companies in no apparent order, with brief notes about significant clauses from each company. In particular, competitors are not listed together so that users can compare them. A link gives longer notes. It does not typically link to the exact wording from the company. The Topics tab lists topics, with brief notes from some companies about aspects of the topic.
TOSBack.org, supported by the Electronic Frontier Foundation, lists changes in terms and policies sequentially, 10 per page, for 160 pages, or nearly 1,600 changes, for "many online services". There does not seem to be a way to find all changes for a particular company, or even which companies were tracked in any time period. It links to Terms of Service; Didn't Read, though that typically does not have any evaluation of the most recent changes listed at TOSBack.org.
Terms of service are subject to change and vary from service to service, so [|several initiatives] exist to increase public awareness by clarifying such differences in terms, including:
- Availability of previous terms
- Cancellation or termination of the account and/or service by user
- Copyright licensing on user content
- Data tracking policy and opt-out availability
- Indemnification or compensation for claims against account or content
- Notification and feedback prior to changes in Terms
- Notification of government or third-party requests for personal data
- Notification prior to information transfer in event of merger or acquisition
- Pseudonym allowance
- Readability
- Saved or temporary first and third-party cookies
- Transparency of security practices
- Transparency on government or law enforcement requests for content removal
Criticism and lawsuits
AOL
In 1994, the Washington Times reported that America Online was selling detailed personal information about its subscribers to direct marketers, without notifying or asking its subscribers; this article led to the revision of AOL's terms of service three years later.On July 1, 1997, AOL posted revised terms service to take effect July 31, 1997, without formally notifying its users of the changes made, most notably a new policy which would grant third-party business partners, including a marketing firm, access to its members' telephone numbers. Several days before the changes were to take effect, an AOL member informed the media of the changes and the following news coverage incited a large influx of internet traffic on the AOL page which enabled users to opt out of having their names and numbers on marketing lists.
Sony
In 2011 George Hotz and others were sued by Sony Corporation. Sony claimed that by violating the terms of service of the PlayStation Network, Hotz and others were committing breach of contract.There was no apparent option to opt out of the changed terms of use.
The move garnered severe criticism from privacy advocates as well as consumers. After one day, Instagram apologized saying that it would remove the controversial language from its terms of use. Kevin Systrom, a co-founder of Instagram, responded to the controversy, stating,