Now, “don’t get sued” sounds like a simple rule to follow, but proves difficult for many companies to uphold because, the common denominator is that: their digital legal agreements are unenforceable.
These cases are easy to find: old and new.
In 2005, Jim Schumacher LLC a reseller of GPS equipment, entered a resale agreement with a predecessor to GPS, Spireon. That agreement allowed Schumacher to sell non-Spireon products and prohibited Spireon from contacting Schumacher’s existing customers.
When that agreement changed in 2005, Spireon prohibited resellers from selling non-Spireon products, and permitted Spireon to directly contact customers of its resellers. Spireon presented the amended agreement on its website portal. Resellers could access the portal only after agreeing to the new terms.
Schumacher purposely never agreed to terms; he didn’t want Spireon to have his contacts, but they accessed them anyways saying that Schumacher checked “yes.”
He was not agreeing to new terms, Spireon got mad and sued. Guess who lost? Spireon. Guess why? Because they didn’t have evidence of the clickwrap agreement showing that Schumacher agreed.
If only PactSafe would have been around to keep track…
So, it looks like some people read privacy policies, which we are glad to hear, but this time, it didn’t even matter! The judge dismissed the complaint because there weren’t any evident incurred damages.
All of the above examples involve companies being a little devious in how they update terms and use customer data. We live in a connected world where consumers aren’t willing to let things slide when their customer data is being used improperly. We live in a world where transparency is appreciated. Here are some great ways to improve your transparency in your customer relationships:
Provide an easy to navigate, responsive legal center with summaries of your main provisions and how your versions change all inline.
Send an email with the terms your customers have agreed to as soon as they agree to it.
Notify your customers every time your legal terms change via email and when they login and let them know how the new terms are accepted.
All of that in one plus much, much more? That’s PactSafe. Request a demo today.