At some point, you’ve probably been asked to read and accept some Terms of Service/Use. However, chances are you just scrolled straight to the bottom and clicked “agree.” Before you breeze through those terms next time, here are a few things you should know.
Terms of Service Are Legally Binding Contracts
Maybe it’s because they lack the usual fanfare accompanying traditional pen-and-paper contracts, but it’s hard to take Terms of Service seriously. For the longest time, I saw them as just another obligatory hurdle you had to jump through and didn’t give them much thought.
However, the reality is that Terms of Service are a contract, and like any other contract, once you’ve agreed to it, it is legally binding and enforceable in court. It doesn’t matter that you never physically signed any documents, merely checking that box is enough to consent.
Now, in most cases, issues relating to the Terms of Service won’t ever come up, and after checking that box, you may never have to think about it again.
However, if there is a dispute between you and the company, those terms suddenly become very important. If you didn’t read them at the start, you may belatedly realize that you backed yourself into a corner when you agreed to them.
This is because Terms of Service often contain clauses that limit your rights or affect how you can resolve your disputes. They might state that you don’t own that tech you bought or that, in the event of a dispute, you must resort to arbitration and not a court trial.
A real-life example of how accepting terms of service without a second thought can impact your rights is the case of a couple who were injured when their Uber driver ran a red light. They wanted to sue Uber in court, but the court blocked their lawsuit, pointing out that the arbitration clause they had agreed to in Uber’s Terms of Service prevented them from doing so.
In another high-profile case, a man sued Disney for wrongful death after his wife was served food that contained allergens while on its premises. Disney argued that since the couple had accepted the Terms of Service on the Disney website, they could only settle their disputes through arbitration.
In this case, Disney was forced to backtrack due to the public backlash, but this was the exception, not the rule. In most instances, whatever you agree with in the Terms of Service (so long as it is not unfair or illegal) binds you, so think hard about it before you check any boxes.
It’s Not Just About What Companies Can Do, It’s Also About What You Can’t
When you accept Terms of Service, you not only permit the company to do certain things, but you also agree to abide by certain rules and undertakings. The content of these rules will vary with the company, but they often include things like avoiding harmful behavior, and not tampering with or modifying the software. If you fail to comply, you may get hit with punishments.
For example, Nintendo’s terms of use prohibit account trading. If they find out you’re selling or buying accounts, they can delete them entirely, cutting you off from everything you’ve purchased or earned. And when it comes to tampering with software—whether through cracking games or using cheats—companies are quick to hand out suspensions and bans.
If the violation is grave enough, companies may even resort to legal action. It’s rare, but it does happen. For example, in 2011, Sony sued George Hotz for hacking the PlayStation 3 to run unauthorized software, and in 2017, Epic Games sued a teenager for using and promoting cheats in Fortnite.
Terms of Service Can and Do Change
Another thing to keep in mind is that Terms of Service don’t always stay the same. They usually contain clauses that state that these terms are subject to change. If there’s a change, the company will inform you, usually by email or notification. That’s what happened in the Uber case mentioned earlier. The arbitration clause was not in the original Terms of Service, but the terms were later updated to include it.
Not all companies will ask you to reconfirm your agreement when they update their Terms of Service. Some will just invite you to read through the updated Terms of Service and take your continued use of their services as confirmation.
For example, Meta’s Terms of Service state that “Once any updated Terms are in effect, you will be bound by them if you continue to use our Products.”
So, if you’re the type that ignores emails from apps and services you use, you might unwittingly agree to new terms.
Not All Terms of Service Are Created Equal
Terms of Service vary by company. Some are reasonable, while others include terrible privacy policies. Before hitting “accept,” you need to know where on the scale that particular Terms of Service stands, and whether you are comfortable meeting their demands.
Reading the full document is the best way to understand what the Terms of Service involve, but if you’re short on time, you can use ToS;DR (Terms of Service; Didn’t Read).
This tool analyzes and grades popular services’ terms, giving you a quick summary of the key points. It’s not the same as a complete read-through, but it can help you get a good idea of what you’re agreeing to.
Now that you know the implications of clicking accept, you can be more discriminating about which Terms of Service you accept. If you’re really serious about protecting yourself online, you can also follow these online security tips and shore up gaps where you are vulnerable online.
