If you're anything like us here at PactSafe, you are obsessed with Mike Judge and Alec Berg’s comedy about the American tech industry: Silicon Valley. The show, which just started it's fourth season last month, centers around a group of young entrepreneurs trying to make it big despite the hijinks they regularly find themselves in. Silicon Valley successfully satirizes the tech goliaths and the startup world, in a hilarious and completely relatable way.
Although every new installment of the show is something to look forward to, this week's episode in particular focused on something near and dear to our hearts: Terms of Service. In the episode, Dinesh has recently taken the helm as CEO of PiperChat, and is flying high as daily active users continue to grow. With the company receiving more and more attention, a burned Richard does some investigating, only to discover that Dinesh failed to import the terms of service into his app.
"I checked the TOS box when I submitted it to the App Store, but then I didn't end up doing it, alright! But then when we caught fire, the last thing I wanted to do was bog our users down with legal bullshit. I mean, nobody reads that stuff anyway."
Although this may be true (despite Jared's naiive claims that "everyone reads the terms of service"), it doesn't make digital recordkeeping any less important. Rather, it's a clear illustration of the universal need for Contract Execution Platforms in every business and the implications of failing to follow Terms of Service best practices.
This entire episode serves as a great reminder, as detailed in New York Magazine, that, "Until the tech industry accepts that legal a$$-covering and ethical a$$-covering are not equivalent, this [mistakes regarding faulty TOS] is [are] going to happen over and over again."
However, just because keeping tabs on legal is important, doesn't mean it has to also be difficult. Click-through agreements are an enforceable strategy to avoid online disputes - and in PiperChat's case, billions of dollars in legal fees. Clicking or tapping through an agreement in order to sign can be used to gain customers' acceptance to your website. Enforcing click-through agreements for online terms acceptance is beneficial to both the customer and the business; the customer is notified of the security protocols of the website and the business can uphold customers to what their terms of service state.
Learn your lesson from Dinesh: execute your online contracts correctly! Lucky for you, we spell out some of the most common mistakes SaaS companies should avoid when it comes to online contract execution here.
PactSafe is the only contract execution platform that automatically manages all of your contract data and enables custom processes that deliver seamless execution for your customers and internal teams to ensure confidence in your end-to-end contract experience.