In his article, Jim Lamm comments on a recent study that found that users don’t read Terms of Service Agreements and Privacy Policies, specifically citing that 98% of users missed the so-called “gotcha clauses” that the experiment creators had planted in their study. He summarizes the findings,
In their experiment, the fictitious company had a 4,316-word Terms of Service Agreement for the user to read when signing up for the company’s social networking site. By comparison, Google’s Terms of Service Agreement (revised April 14, 2014) runs 1,881 words, Facebook’s Terms of Service Agreement (revised January 30, 2015) runs 3,159 words, and Yahoo!’s Terms of Service Agreement (revised March 16, 2012) runs 5,585 words. The working paper notes that an average adult should be able to read the 4,316-word Terms of Service Agreement used in the experiment in 15-17 minutes. However, in the experiment, 86% of users spent less than one minute reading the Terms of Service Agreement, and 97% of users spent less than five minutes reading the Terms of Service Agreement. Only 9 of the 527 participants in the experiment (1.7%) reported noticing the “gotcha clause” requiring the user to assign their first-born child to the company.
From an estate planning perspective, some Terms of Service Agreement provisions are important to consider, especially when planning for a user’s incapacity or death
Find the full post here: Study Shows Users Don’t Read Terms of Service Agreements
Posted by Allison Trupp, Associate Editor, Wealth Strategies Journal