Terms of service
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 suit 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.
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
- 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
A 2013 documentary called Terms and Conditions May Apply publicized issues in Terms of service. It was reviewed by 54 professional critics, and won as Best Feature Documentary at the Newport Beach Film Festival 2013, and as Best Documentary at the Sonoma Valley Film Festival 2013.
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a group effort which rates 67 companies' terms of service and privacy policies, though their site says the ratings are "outdated." They also have browser addons which 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 could compare them. A link gives longer notes. It does not typically link to the exact wording from the company. The Topics tab lists topics (like Personal Data or Guarantee), 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 they tracked in any time period. They link 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:
- Copyright licensing on user content
- Transparency on government or law enforcement requests for content removal
- Notification of government or third-party requests for personal data
- Transparency of security practices
- Saved or temporary first and third-party cookies
- Data tracking policy and opt-out availability
- Pseudonym allowance
- Notification and feedback prior to changes in Terms
- Availability of previous Terms
- Notification prior to information transfer in event of merger or acquisition
- Indemnification or compensation for claims against account or content
- Cancellation or termination of account by user and or service
Criticism and lawsuits
In 1994, the Washington Times reported that America Online (AOL) 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.
Our intention in updating the terms was to communicate that we’d like to experiment with innovative advertising that feels appropriate on Instagram. Instead it was interpreted by many that we were going to sell your photos to others without any compensation. This is not true and it is our mistake that this language is confusing. To be clear: it is not our intention to sell your photos. We are working on updated language in the terms to make sure this is clear.
- Acceptable use policy
- Clickwrap license
- End-user license agreement
- Free software license
- Glossary of legal terms in technology
- Index of Articles Relating to Terms of Service and Privacy Policies
- Internet privacy
- License manager
- List of software licenses
- Shrink wrap contract
- Software Asset Management
- Software license
- Standard form contract
- Terms and Conditions May Apply (2013 film)
- Terms of Service; Didn't Read
- Kornblum, Janet (1997-07-29). "AOL dumps new member policy". Archived from the original on 2013-01-19. Retrieved 2006-12-24.
- "Terms of service Definition from PC Magazine Encyclopedia". pcmag.com. 2013. Retrieved 2013-01-07.
- Del Piero, John; Jennifer Swanton; Tony Cardine (2017-08-28). "5 Ways to Secure Your Intellectual Property During Corporate Transitions". Legaltech News.
- "Terms and Conditions May Apply (2013) External Reviews". IMDB. Retrieved 2017-03-15.
- "Terms and Conditions May Apply (2013) Awards". IMDB. Retrieved 2017-03-15.
- "Terms of Service; Didn't Read, home page". Retrieved 2017-03-15.
- "Terms of Service; Didn't Read, Topics". Retrieved 2017-03-15.
- [tosback.org "TOSBack, The terms of service tracker"] Check
|url=value (help). Retrieved 2017-03-15.
- Pepitone, Julianne (December 18, 2012). "Instagram can now sell your photos for ads". CNNMoney. CNN. Retrieved December 18, 2012.
- McCullagh, Declan; Donna Tam (18 December 2012). "Instagram apologizes to users: We won't sell your photos". Cnet. Retrieved 19 December 2012.
- Systrom, Kevin (December 18, 2012). "Thank you, and we're listening". Instagram. Instagram. Retrieved December 19, 2012.
- Goldman, Eric. "How Zappos' User Agreement Failed In Court and Left Zappos Legally Naked". Retrieved 1 October 2013.