The majority of Software as a Service (SaaS) apps rely on personalized consumer accounts individuals create when first accessing the platform. Essentially, this exchange allows the business operating the SaaS application to generate a license for the user, which in turn grants them access to the app. Because of the nature of this process, it’s imperative that proper legal steps are taken to ensure that the exchange is secure for both the company and consumer. One of the best ways to successfully do this is to implement the clickwrap method.
Implementing an eSignature strategy is one thing, but taking full advantage of that strategy is another. When using an electronic signature as part of your contract process, you’re already taking a huge step towards a more streamlined, accelerated form of business. But there are a few more things you need to be sure you’re doing to really capitalize off this technology.
Recently the Consumer Financial Protection Bureau issued a new rule restricting the use of arbitration clauses in contracts for all sorts of financial products such as credit cards, payday loans, auto loans and more. Why are arbitration clauses so important? They are typically used to prevent aggreived consumers from banding together in class action lawsuits by requiring them to deal with financial institutions 1:1 in form of an arbitrator.