Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Cybersecurity Law & StrategyFeaturesConsumer ProtectionCybersecurityInternet LawTechnology Media and Telecom

Can Terms of Service Agreements Allow Companies to Skirt Consumer Protection Laws?

By Stephen M. Kramarsky
February 01, 2021

We've all done it: checked the box and confirmed that we are bound by a company's "Terms of Service" without so much as glancing at them. These days, "Agree to Continue" is a part of the required ritual, not only for software and online services, but for hardware as well. Before you use your new iPhone, draft a Word document, call an Uber, or even order a pizza, you will have agreed, sight unseen, to a set of standardized terms drafted by a company's lawyers. For most people, the choice is simple. Most users do not have the time or inclination to read through dozens of pages of legalese before reviewing the morning's tweets, and if millions of users are agreeing to these terms, how bad can they be? If a company's Terms of Service become too onerous, or stray too far from accepted industry norms, the company will likely be called out by a sophisticated user or industry watchdog.

This system has functioned with surprising efficiency during a period of explosive growth, and at this point nearly all e-commerce depends on users agreements to contracts virtually no one has ever read. Courts are well aware of that dynamic, and many have commented on it, but have largely upheld these kinds of agreements based on traditional contract law principles. The "click" of agreement, or the ongoing use of the product or service, functions as the user's agreement to the Terms of Service, regardless of whether the user knows precisely what the Terms say. Contracting parties are assumed to have reviewed and agreed to all terms of their agreement.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.