The proliferation of digital disclaimers and terms of service (TOS) in the internet era is a challenge to both consumers and businesses. Already strapped for resources to attend to the urgencies of the day, there’s little time, interest, or energy for reading pages of disclaimers, privacy policies, and terms of use.

Unfortunately, “I didn’t read the terms” is rarely an effective legal defense, and both consumers and businesses can suffer negative consequences for disregarding the terms and conditions of service. A few of the more common TOS mistakes that businesses make include:

1. No “check box” to confirm the user’s agreement to the TOS. This can render the terms and conditions entirely unenforceable. The case law regarding click-wrap agreements (a.k.a. click-through agreements) is still developing, so it’s a good idea to get advice from an internet law attorney to make sure that your terms and conditions are enforceable, and to ensure that the mechanics of user consent, communication, and content submission adhere to industry best practices.

2. Online contests and promotions that violate a website’s TOS. In addition to various state and federal laws that apply to contests and promotions, popular websites such as Facebook have additional terms and conditions that apply to contests. Violating the terms may expose you to a range of penalties and legal liabilities, in addition to suspension or forfeiture of your accounts.

3. Copying disclaimers, privacy policies, and terms of use from others. Depending on your product, service, or business strategy, your terms and conditions of use may be one of your most important assets. Taking shortcuts on the TOS will expose you to legal liabilities and may also impair your ability to expand or change the course of your product, service, or business strategy.

In the internet era, disclaimers, privacy policies and terms of use are important for every business. Integrating your business strategy with your TOS is an effective way to limit your risks and liabilities, while building value and security in the assets your business creates.

Disclaimer: This article is not legal advice and does not create an attorney client relationship. To reach the attorney responsible for this article please contact James Blake, The Blake Law Firm PLLC, 9442 N. Capital of Texas Hwy, Arboretum Plaza One Ste 500-181, Austin, Texas 78759. (512) 651-3930.