Content
@
0 reply
0 recast
0 reaction
Daniel Barabander
@dbarabander
I am unaware of an area of law with more bang for its buck for crypto apps than a website’s terms of service. I know terms of service are not the most exciting thing in the world, but if done right, they can make a huge difference in legal liability exposure. The key issue apps run into in this area of law is whether the terms are enforceable on the app’s users. So, I looked into tips for increasing the likelihood of enforceability. Here’s a thread with the TLDR.
7 replies
35 recasts
107 reactions
Daniel Barabander
@dbarabander
Generally speaking, the “gold standard” for terms of service is a “clickwrap” or “scrollwrap” (I’m treating these as similar things, but different people call these different things). This is when the app presents the full terms, and users click a box saying they’ve read and agree to them. As one court put it: “To ensure that an online agreement passes muster, clickwrap is the safest choice.”
1 reply
1 recast
4 reactions
Daniel Barabander
@dbarabander
But presenting your users with a wall of legalese is bad UI, so over time, apps have increasingly hyperlinked to the terms (instead of displaying the terms on the page itself) and included an action item to manifest assent, even if this is generally seen as riskier than a pure clickwrap. This is commonly referred to as a “sign-in wrap” or “hybrid wrap,” but I find that name confusing, so I call it a “hyperwrap.”
1 reply
1 recast
3 reactions
Daniel Barabander
@dbarabander
Courts take an extraordinarily detailed and design-centric approach when assessing the enforceability of hyperwraps, focusing on whether they provide adequate notice to the user about the terms and whether the user’s action manifests assent. Based on my review of important cases, here are 5 tips to increase the likelihood that the hyperwrap is enforceable.
1 reply
1 recast
4 reactions
Daniel Barabander
@dbarabander
First, present the hyperwrap on a clean, uncluttered page. The hyperwrap should be the star of the show when it’s presented, not buried.
1 reply
1 recast
3 reactions
