Terms And Conditions Are The Biggest Lie Of Our Industry

Comment

Image Credits: Sarah Joy (opens in a new window) / Flickr (opens in a new window) under a CC BY-SA 2.0 (opens in a new window) license.

THE LEGAL AGREEMENTS SET OUT BELOW GOVERN YOUR USE OF THIS TECHCRUNCH POST (“TECHCRUNCH”). TO AGREE TO THESE TERMS, CLICK “AGREE.” IF YOU DO NOT AGREE TO THESE TERMS, DO NOT CLICK “AGREE,” AND DO NOT USE THE SERVICES.

A. TERMS & CONDITIONS ARE WAY TOO LONG SO THAT YOU DON’T READ THEM AND JUST CLICK ACCEPT

You agree that you never read TERMS & CONDITIONS. Aren’t we right?

  1. Apple is notoriously wordy — you’re not going to read 20,000 words before using the iTunes Store.
  2. Facebook breaks down its TERMS & CONDITIONS in multiple pages — we stopped after copying and pasting them in a single 15,000-word document.

There is no incentive to make these documents shorter as you don’t want your users to pay too much attention to your TERMS & CONDITIONS. And there are new challenges today that make these TERMS & CONDITIONS even more obsolete (see paragraph C).

Yet, if you are an astute observer, you may have noticed that Google needs less than 5,000 words to explain all its TERMS OF SERVICE and PRIVACY POLICY. This is another sneaky strategy. For instance, keeping things vague lets Google collect basically everything on your hard drive.

“We may collect and store information (including personal information) locally on your device using mechanisms such as browser web storage (including HTML 5) and application data caches,” Google writes.

While the company gives us examples about how it plans to store data on your computer, it doesn’t say what data it is going to collect.

B. TERMS & CONDITIONS ARE WRITTEN IN IMPENETRABLE LEGALESE, INTENTIONALLY VAGUE AND HYPER-QUALIFIED LANGUAGE THAT’S DESIGNED TO MAKE IT IMPOSSIBLE FOR YOU TO UNDERSTAND ‘WTF’ YOU ARE AGREEING TO ANYWAY

Oops! Did you just agree to hand over your firstborn in exchange for using some free Wi-Fi? Faustian pacts have never been so in vogue, thanks to those little T&Cs.

Spotify just updated its TERMS & CONDITIONS this morning with some very broad statements. The company talked about collecting your photos, location, contacts and more.

The company’s CEO Daniel Ek got into a Twitter fight with Minecraft creator Markus Persson over this update. Persson doesn’t think Spotify should be able to access your photos on your phone.

But Ek later clarified why the company needed to update its TERMS & CONDITIONS. If you want to add a custom image to one of your playlists, you can let the Spotify app access your photos and pick a photo in your camera roll. Spotify won’t upload all your camera roll in a creepy way like Facebook and Google do — at least according to Ek’s statement.

According to Ek again, it’s the same thing for the other types of data. You can let Spotify access your microphone for voice commands, your contacts to invite your friends to sign up to Spotify, etc.

But should we trust Spotify? As you can see, the company’s TERMS & CONDITIONS and PRIVACY POLICY are quite short. As a user, it can be scary as you end up agreeing to broad statements in these documents (see paragraph A). It all comes down on whether you trust a company and its CEO. In other words, TERMS & CONDITIONS have become useless as you can always misinterpret them.

C. TERMS & CONDITIONS HAVE NEVER BEEN UPDATED FOR THE DIGITAL AGE — THAT’S INTENTIONAL, TOO

If you’re buying a house, and taking out a mortgage, you should expect to read a lot of small print (doubtless printed out on actual sheets of paper — because that’s how law firms typically roll). Purchases and ‘service agreements’ rarely get much bigger than property-related transactions so such wordiness is understandable. But why should using a free weather app or setting up a new smartphone involve similarly lengthy and antiquated screeds for the tech user to parse?

Consider this: how is the Internet of Things going to handle TERMS & CONDITIONS? If every device in your home requires you to read 2,000 to 10,000 words of ‘conditions’ before you can use it that’s a pretty big and unattractive road-block squatting on the smart home ‘on-ramp.’

Add to that, lots of these connected devices won’t even have a screen on them, so how will you read the TERMS & CONDITIONS anyway? Will your devices read them out to you via speaker, droning on in soul-sucking legalese all day and deep into the night in the background of your smart home as they toil electronically to insert all their conditions into your conscious mind? Or will they send them to your smartwatch so you have to spend every spare moment of your waking life flicking your wrist to wade through their never-ending texts?

It doesn’t have to be this way. If TERMS & CONDITIONS were designed to communicate the service’s scope and functions efficiently and effectively so that humans could actually understand: A) how it works and B) which bits of their data are absolutely required for it to function — these screeds could be cut down to size; even to just a few bullet points. Or, hey, why not even create some industry standard icons representing particular types of functions? Regulators take note!

The problem is companies don’t want to reduce the length of T&Cs because they are:
A) covering their asses and B) attempting to landgrab as much user data as possible to C) maximize their profit.

So really, TERMS & CONDITIONS are an outgrowth of an even larger festering sore on the butt of the tech industry: data privacy.

BOTTOM LINE: WE NEED TO FIND AN ALTERNATIVE TO TODAY’S TERMS & CONDITIONS

If your business model relies on:

  1. Misleading your users about your true intentions;
  2. Obfuscating how much of their data you are sucking up;
  3. Being as opaque as possible about what you are doing with that data;
  4. Equivocating on the question of who/what you are selling the data to/sharing it with;
  5. Intentionally failing to articulate how you are data-mining service usage and user data;
  6. Not being at all clear about who gets access to the ‘insights’ you derive from service usage and user data — thereby allowing yourself to claim you don’t “sell” any user data

Then you are operating on borrowed time. Because the other biggest lie in the tech industry is that users don’t care about privacy.

Users have been lied to that their data is safe. And intentionally impenetrable privacy policies have encouraged them to just click ‘I accept’ on your TERMS & CONDITIONS. But they are waking up to that lie. And claims that your service is trustworthy are going to ring increasingly hollow — not least as more and more ‘apparently safe’ data leaks online, illustrating the extent to which technology has been allowed to exploit user data and undermine user privacy.

So, which of those buttons do you want to click on now?

YOU EXPRESSLY AGREE THAT YOUR USE OF, OR INABILITY TO USE, THE TECHCRUNCH SERVICE IS AT YOUR SOLE RISK. THE TECHCRUNCH SERVICE AND ALL PRODUCTS AND SERVICES DELIVERED TO YOU THROUGH THE TECHCRUNCH SERVICE ARE (EXCEPT AS EXPRESSLY STATED BY TECHCRUNCH) PROVIDED “AS IS” AND “AS AVAILABLE” FOR YOUR USE, WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NONINFRINGEMENT. BECAUSE SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, THE ABOVE EXCLUSION OF IMPLIED WARRANTIES MAY NOT APPLY TO YOU.

More TechCrunch

Google is investing nearly $350 million in Flipkart, becoming the latest high-profile name to back the Walmart-owned Indian e-commerce startup. The Android-maker will also provide the Bengaluru-headquartered startup with cloud…

Google invests $350 million in India’s Flipkart

A Jio Financial unit plans to purchase customer premises equipment and telecom gear worth $4.32 billion from Reliance Retail.

Jio Financial unit to buy $4.32B of telecom gear from Reliance Retail

Foursquare, the location-focused outfit that in 2020 merged with Factual, another location-focused outfit, is joining the parade of companies to make cuts to one of its biggest cost centers –…

Foursquare just laid off 105 employees

“Running with scissors is a cardio exercise that can increase your heart rate and require concentration and focus,” says Google’s new AI search feature. “Some say it can also improve…

Using memes, social media users have become red teams for half-baked AI features

The European Space Agency selected two companies on Wednesday to advance designs of a cargo spacecraft that could establish the continent’s first sovereign access to space.  The two awardees, major…

ESA prepares for the post-ISS era, selects The Exploration Company, Thales Alenia to develop cargo spacecraft

Expressable is a platform that offers one-on-one virtual sessions with speech language pathologists.

Expressable brings speech therapy into the home

The French Secretary of State for the Digital Economy as of this year, Marina Ferrari, revealed this year’s laureates during VivaTech week in Paris. According to its promoters, this fifth…

The biggest French startups in 2024 according to the French government

Spotify is notifying customers who purchased its Car Thing product that the devices will stop working after December 9, 2024. The company discontinued the device back in July 2022, but…

Spotify to shut off Car Thing for good, leading users to demand refunds

Elon Musk’s X is preparing to make “likes” private on the social network, in a change that could potentially confuse users over the difference between something they’ve favorited and something…

X should bring back stars, not hide ‘likes’

The FCC has proposed a $6 million fine for the scammer who used voice-cloning tech to impersonate President Biden in a series of illegal robocalls during a New Hampshire primary…

$6M fine for robocaller who used AI to clone Biden’s voice

Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. Sign up here for free — just click TechCrunch Mobility! Is it…

Tesla lobbies for Elon and Kia taps into the GenAI hype

Crowdaa is an app that allows non-developers to easily create and release apps on the mobile store. 

App developer Crowdaa raises €1.2M and plans a US expansion

Back in 2019, Canva, the wildly successful design tool, introduced what the company was calling an enterprise product, but in reality it was more geared toward teams than fulfilling true…

Canva launches a proper enterprise product — and they mean it this time

TechCrunch Disrupt 2024 isn’t just an event for innovation; it’s a platform where your voice matters. With the Disrupt 2024 Audience Choice Program, you have the power to shape the…

2 days left to vote for Disrupt Audience Choice

The United States Department of Justice and 30 state attorneys general filed a lawsuit against Live Nation Entertainment, the parent company of Ticketmaster, for alleged monopolistic practices. Live Nation and…

Ticketmaster antitrust lawsuit could give new hope to ticketing startups

The U.K. will shortly get its own rulebook for Big Tech, after peers in the House of Lords agreed Thursday afternoon to pass the Digital Markets, Competition and Consumer bill…

‘Pro-competition’ rules for Big Tech make it through UK’s pre-election wash-up

Spotify’s addition of its AI DJ feature, which introduces personalized song selections to users, was the company’s first step into an AI future. Now, Spotify is developing an alternative version…

Spotify experiments with an AI DJ that speaks Spanish

Call Arc can help answer immediate and small questions, according to the company. 

Arc Search’s new Call Arc feature lets you ask questions by ‘making a phone call’

After multiple delays, Apple and the Paris area transportation authority rolled out support for Paris transit passes in Apple Wallet. It means that people can now use their iPhone or…

Paris transit passes now available in iPhone’s Wallet app

Redwood Materials, the battery recycling startup founded by former Tesla co-founder JB Straubel, will be recycling production scrap for batteries going into General Motors electric vehicles.  The company announced Thursday…

Redwood Materials is partnering with Ultium Cells to recycle GM’s EV battery scrap

A new startup called Auggie is aiming to give parents a single platform where they can shop for products and connect with each other. The company’s new app, which launched…

Auggie’s new app helps parents find community and shop

Andrej Safundzic, Alan Flores Lopez and Leo Mehr met in a class at Stanford focusing on ethics, public policy and technological change. Safundzic — speaking to TechCrunch — says that…

Lumos helps companies manage their employees’ identities — and access

Remark trains AI models on human product experts to create personas that can answer questions with the same style of their human counterparts.

Remark puts thousands of human product experts into AI form

ZeroPoint claims to have solved compression problems with hyper-fast, low-level memory compression that requires no real changes to the rest of the computing system.

ZeroPoint’s nanosecond-scale memory compression could tame power-hungry AI infrastructure

In 2021, Roi Ravhon, Asaf Liveanu and Yizhar Gilboa came together to found Finout, an enterprise-focused toolset to help manage and optimize cloud costs. (We covered the company’s launch out…

Finout lands cash to grow its cloud spend management platform

On the heels of raising $102 million earlier this year, Bugcrowd is making good on its promise to use some of that funding to make acquisitions to strengthen its security…

Bugcrowd, the crowdsourced white-hat hacker platform, acquires Informer to ramp up its security chops

Google is preparing to build what will be the first subsea fiber-optic cable connecting the continents of Africa and Australia. The news comes as the major cloud hyperscalers battle it…

Google to build first subsea fiber-optic cable connecting Africa with Australia

The Kia EV3 — the new all-electric compact SUV revealed Thursday — illustrates a growing appetite among global automakers to bring generative AI into their vehicles.  The automaker said the…

The new Kia EV3 will have an AI assistant with ChatGPT DNA

Bing, Microsoft’s search engine, was working improperly for several hours on Thursday in Europe. At first, we noticed it wasn’t possible to perform a web search at all. Now it…

Bing’s API was down, taking Microsoft Copilot, DuckDuckGo and ChatGPT’s web search feature down too

If you thought autonomous driving was just for cars, think again. The “autonomous navigation” market — where ships steer themselves guided by AI, resulting in fuel and time savings —…

Autonomous shipping startup Orca AI tops up with $23M led by OCV Partners and MizMaa Ventures