Terms of service are rules which one must agree to abide by in order to use a
service. Terms of service can also be merely a disclaimer, especially
regarding the use of websites. Usage
The Terms-of-Service Agreement, is mainly used for legal purposes, by
websites and internet service providers, that store a user's personal data, such
as e-commerce and social networking services. A legitimate terms-of-service
agreement is legally binding and may be subject to change.
Content 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; potential
misuse Accountability for online actions,
behavior, and conduct Privacy policy outlining the use of
personal data Payment details such as membership or
subscription fees, etc. Opt-out policy describing procedure for
account termination, if available Disclaimer/Limitation of Liability
clarifying the site's legal liability for damages incurred by users
User notification upon modification of terms, if offered
Public awareness 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 Readability
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 = AOL =
In 1994, the Washington Times reported that America Online 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 of 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. = Sony =
In 2011 George Hotz and others were sued by Sony Corporation. Sony claimed that
by violating the terms of service of the PlayStation Network, Hotz and others
were committing breach of contract. = Instagram =
On December 17, 2012, Instagram announced a change to its terms of use
that caused a widespread outcry from its user base. The controversial clause
stated: "you agree that a business or other entity may pay us to display your
username, likeness, photos, and/or actions you take, in connection with
paid or sponsored content or promotions, without any compensation to you".
There was no apparent option to opt out of the changed terms of use. The move
garnered severe criticism from privacy advocates as well as consumers. After
one day, Instagram apologized saying that it would remove the controversial
language from its terms of use. Kevin Systrom, a co-founder of Instagram,
responded to the controversy, stating, 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.
= Zappos = Some terms of service are worded to
allow unilateral amendment, where one party can change the agreement at any
time without the other party's consent. A 2012 court case In re Zappos.com,
Inc., Customer Data Security Breach Litigation held that Zappos.com's terms
of use, with one such clause, was unenforceable.
See also Acceptable use policy
Internet privacy Standard form contract
Terms and Conditions May Apply Terms of Service; Didn't Read
References External links
Terms of Service; Didn’t Read User rights initiative to rate and label
website terms & privacy policies Electronic Frontier Foundation
Donor-funded nonprofit organization for digital rights litigation
Clickwrapped Ratings of the terms of service and related agreements of major
consumer internet companies