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New Proposal Would Let Companies Further Screw You Over With Terms of Service (vice.com) 111

An anonymous reader quotes a report from Vice: A collection of unelected lawyers [from the American Law Institute] this week is quietly pushing a new proposal that could dramatically erode your legal rights, leaving you at the mercy of giant corporations eager to protect themselves from accountability. Occasionally, this coalition (including all the members of the Supreme Court) meets to create "restatements," effectively an abridged synopsis or reference guide for the latest established precedents and legal trends. While restatements themselves aren't legally binding, they're very influential and often help shape judicial opinions. Seven years ago, the ALI began pondering a new restatement governing consumer contracts -- and your legal rights as a consumer. Today, the ALI meets to vote on the approval of this latest restatement. But a long line of legal experts have been blasting the group's updated language governing consumer contracts.

Specifically, they noted that the updated draft language proclaims that consumers would not need to read a contract to be bound by its terms. The draft states as long as consumers received "reasonable notice" and had "reasonable opportunity to review" it, the contract would be legally binding. Under this model, consumers wouldn't need to even understand the contract to be bound by it, a problem given data suggests such agreements are often incomprehensible to the average user. The language was problematic enough to result in a letter this week by 23 state attorneys general, criticizing the ALI's proposal as a major threat to consumer rights.
"To call boilerplate language that consumers never read (or if they did read, could not understand) a 'contract' simply has the effect of locking consumers in to terms that are likely to be stacked against them," John Bergmayer, Senior Counsel at consumer group Public Knowledge, said in an email.

Traditionally, "contracts" are legal documents that are mutually agreed to after negotiation between two parties. Functionally, this isn't how Terms of Service, which few people read and few people can be expected to read and understand, work in the real world. "For some reason, everything you learn about contracts in the first year of law school gets tossed out the window when it comes to large companies unilaterally setting terms for consumers," Bergmayer added.
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New Proposal Would Let Companies Further Screw You Over With Terms of Service

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  • by Anonymous Coward on Tuesday May 21, 2019 @08:10PM (#58633450)

    maybe if these scum started fearing for their lives they'd think twice before fucking over all of society

    • The contract you agreed to forbids the use of guillotines.
    • just stop voting for people who take corporate PAC money and show up to vote for the pro-middle class candidates like Bernie Sanders and Liz Warren in your primaries. It's that simple.
      • by Anonymous Coward

        Both Bernie Sanders and Elizabeth Warren are taking in corporate and PAC money for their campaigns.

        I realize you are a troll but really you should try harder next time.

      • by Anonymous Coward

        I would have agreed with you about Bernie at one point, but when he went full in supporting Hillary last election, he lost all credibility.

        Warren? Seriously? Hillary 2.0. Thanks but no thanks. She may be the worst out of the entire pack.

    • maybe if these scum started fearing for their lives they'd think twice before fucking over all of society

      We're just talking about the summary here, right?

    • by DeVilla ( 4563 )
      I'm not saying your wrong in general. I'm not supporting the restatement described in the summary either. But in this case I can't help but think, perhaps the problem is less the lawyers and judges interpreting the laws we have and more the legislators who rarely seem to legislate and who otherwise do so poorly.
  • Doesn't this describe every policy-focused political group? You could say the same thing about Greenpeace.

    • and set guidelines that affect rulings about what laws are constitutional. So it's just a wee bit different.
    • Re:Unelected lawyers (Score:5, Informative)

      by Aighearach ( 97333 ) on Tuesday May 21, 2019 @10:07PM (#58633856)

      Doesn't this describe every policy-focused political group? You could say the same thing about Greenpeace.

      Yes. Exactly.

      This is a membership group that publishes a book. That's what this is. A book. Not a law. Not a precedent. Not a case. Not a bill. A book. A book that isn't going to show up any time soon, since today is the day of the ALI membership vote, and before slashdot posted the story they had already decided to postpone it until at least next year. Meaning it will get fixed, because...

      Unlike Greenpeace, they're not intending to advocate for anything, their intent is only to publish summaries for lawyers and judges outside of a specialty. It's like Cliff Notes, but for professionals. So it is not really a surprise that they didn't approve it, after that Attorney Generals' letter. When 23 State AGs are opposed to something that isn't even supposed to be controversial, you can expect it to be postponed and fixed.

      This is the ALI's process working. They assign a very small team to write these Restatements, it isn't that surprising to have one go off the rails once in awhile, because individuals might have a wide range of understanding, and you might accidentally choose a team of 3 people that create an echo chamber.

  • Such a contract is drawn up by one party and is binding on the other party without recourse or argument. Examples are car rental contracts, the shrink-wrap EULA, and those airline "contracts of carriage" - the ones you are legally supposed to read but if you ask to see one you will be labeled a terrorist and thrown off your flight.

    • Can't some public minded lawyer post a "terms of payment" contract online that we can mention every time we purchase something or sign a credit card slip. That would give suppliers a reasonable chance to read what they are agreeing to when they accept my money.
  • Under this model, consumers wouldn't need to even understand the contract to be bound by it

    I could actually see this working. *IF* there were a requirement that any terms in such a contract had to be limited to terms a "reasonable" customer would expect and agree to. So boilerplate like "customer agrees to pay service the agreed amount once a month on the first of the month" or "service shall not sell or share to third parties without customer's express written permission, private info customer shared w

  • Chaaa! When you elect their representatives this is usually what happens. Somebody gonna tell me this wasn't foreseen?

  • by geekmux ( 1040042 ) on Tuesday May 21, 2019 @09:37PM (#58633748)

    "For some reason, everything you learn about contracts in the first year of law school gets tossed out the window when it comes to large companies unilaterally setting terms for consumers..."

    It's not "some" reason. The reason is obvious, and I don't even know why we're talking about this. Consumers won't change. They never read EULAs today. Not sure why the hell we feel they'll read them with an additional screw-U-more clause. 99.999% of consumers won't ever find themselves in a legal battle due to this anyway, so they'll further dismiss this concern under the It'll-never-happen-to-me mindset.

    Corporations maximize their leverage in contracts because of this, so let's stop playing dumb. The last person to read a fucking EULA was the lawyer who wrote the damn thing.

    • by AmiMoJo ( 196126 )

      Pass a law requiring EULAs to be read out loud at the standard 2.5 words per second rate before the user is allowed to agree with them. Signing up to PayPal would take months, and if you got an iPhone for Christmas it would be Easter before you could make a call.

      Companies would quickly condense their EULAs down to a manageable size and consumers would pay more attention to them.

  • The law might be terrible but that doesn't mean that judges get to choose how to interpret it. Politicians write the laws. Judges have to interpret them not based on how they feel but in a logical way based on rules and past precedence. Now if the judges interpretation of a law seems draconian then maybe the laws should be changed. You know like when Drako actually wrote out the laws of ancient Athens, the people could see just how cruel their legal system was and changed it.

    Stop blaming judges for act
    • The law might be terrible but that doesn't mean that judges get to choose how to interpret it. Stop blaming judges for actually reading bad laws and interpreting them literally. That's their job. Don't like the law change it.

      Bullshit.

      Was it Plessy vs. Ferguson (the Supreme Court case establishing "separate but equal") or Brown vs. Board of Education (the case invalidating that case law) that had judges who "read bad laws and interpreted them literally"?

      The entire point of the existence of the court system is to have judges and juries providing a balance against bad laws.

  • That is the whole point of the "Restatement". Complaining about its summary of existing law is like blaming the photographer for an ugly subject. Sure, there is some 'framing' on certain points. But here, contract law as it is currently enforced recognizes that basically no one reads boilerplate consumer contracts. Nonetheless, the courts have decided that they should be enforced. That may suck for some consumers, but the alternative is what?
    • If one were to actually bother to read the current draft of the Restatement, it sets forth the many ways existing law provides significant consumer protections. And those protections are provided precisely because no one reads the contracts and they are what is commonly referred to as contracts of adhesion - ie, not negotiated or otherwise changeable contracts. If you want you cable service, or software you SHALL AGREE.
    • The alternative is strong consumer protections and a good-faith requirement with regards to dealing with the public. Contracts of adhesion are not âcontractsâ(TM) as no meeting of the mind takes place, especially when the consumer has no bona-fide alternatives. When every company has the same shitty terms, reading the adhesion contract text is a bit like mental masturbation.

      The fact is, the 20% are forced to accept what the 80% will tolerate. Tyranny of the masses. Oh sure, you donâ(TM)

  • Anyone remember which company did this just to have fun?

  • How outrageous of terms can a company hide in the fine print that virtually no consumers read. Can it get full access and rights to a users data? Can it encrypt the disk unless a monthly unlock fee is paid. First born children and kidneys???

    EULAs need to have a very short summary section in language that most people can understand.

  • by BoogieChile ( 517082 ) on Wednesday May 22, 2019 @12:44AM (#58634310)

    > A collection of unelected lawyers

    If your summary is wrong by the third word, it doesn't inspire a lot of confidence in the rest of it;

    > Council members are elected [ali.org] from the Institute membership for terms of five years. The Council ordinarily meets in January, May, and October.

  • I think this is absolutely fine. Of course, when I purchase a product, I will also lay a piece of paper on the counter. They don't need to read it or accept it, but it is binding, and they will be obligated to do whatever I wrote in that "contract". Let's say...a product testing fee of $1 million?

    Seriously, guidance like this completely undermines the meaning of the word "contract", which is an intentional, knowing acceptance of agreed terms.

    The problem of contractual acceptance - and the face that many peo

  • "There's no point in acting surprised about it. All the planning charts and demolition orders have been on display at your local planning department in Alpha Centauri for 50 of your Earth years, so you've had plenty of time to lodge any formal complaint and it's far too late to start making a fuss about it now. … What do you mean you've never been to Alpha Centauri? Oh, for heaven's sake, mankind, it's only four light years away, you know. I'm sorry, but if you can't be bothered to take an interes
    • BtW- I was just laughing about this until I read the associated PDF (https://ag.ny.gov/sites/default/files/letter_to_ali_members.pdf).
  • by Sqreater ( 895148 ) on Wednesday May 22, 2019 @07:33AM (#58635064)
    It would completely destroy the logic supporting the requirement that people be at least 18 to sign a contract. A preschooler could sign a contract.
    • "A preschooler could sign a contract."

      They already can. The only problem is it wouldn't be enforceable against the child.

      • ok - A preschooler could sign an enforceable contract. Better? I thought the implication was clear.
  • Fine, then I'll make a contract "reasonably available" stating that any company that used my data without my express, written consent agrees to pay me $1000 per day I use their service and that any verified data breeches trigger a $15,000,000 payout.

  • “But the contract was on display”
    “On display? I eventually had to go down to the cellar to find it.”
    “That’s the display department.”
    “With a flashlight.”
    “Ah, well, the lights had probably gone.”
    “So had the stairs.”
    “But look, you found the contract, didn’t you?”
    “Yes,” said Arthur, “yes I did. It was on display in the bottom of a locked filing cabinet stuck in a disused lavatory with a sign on the

  • Here's the big thing that many of y'all are missing: This isn't a shadowy group of lawyers getting together to try and fuck the consumer. If it's being contemplated for inclusion in The Restatement of Contracts, then it's *already* been ruled on Courts and made precedent. IE in many cases IT'S ALREADY HERE. The restatement is merely the messenger.

    As for the ALI, this process is nothing unheard of. Subby paints this as some sort of conspiracy. In fact there are dozens of restatements (https://www.ali
  • Companies can and do put terms of service that are not legally binding. The real question to ask it, will the terms hold up in court? A lot of those terms will not hold up if it is in court. The end user is often compelled to agree to TOS even though she may not agree. Even companies violate the terms of service of products they sell. Case in point, if someone buys a laptop and does not agree to Microsoft TOS, she can get a refund for the OS. In North America, the refund is not honoured. In Australia, it is
  • Holding people to account for not understanding the legalese they're conned into signing by salespeople is the American way of life. Anyone who opposes this foundational concept in American consumerism is a traitor & should be prosecuted by Judge Judy on Fox News.

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