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Legal Niches

: E-Commerce Law

Copying Another Website's Terms of Use Can Lead to Trouble

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Public Knowledge has highlighted a number of instances (most notably, instances involving Twitter and Adobe) in which e-commerce companies have failed to undertake the analysis and thoughtful drafting required to develop customized Terms of Use and, instead, used generalized terms or simply "borrowed" the Terms of Use posted at another company's website.  Unfortunately, it's a trend we've observed for some time. 

Even  sophisticated companies are tempted to reduce legal expenses by simply copying (or modifying) the Terms of Use applicable to the website of a competitor or other similar business.  In the end, the practice usually ends up being another example of being "penny wise" and "pound foolish." Sidestepping the relatively inexpensive task of drafting customized Terms of Use often forces the company to spend large sums of money repairing a damaged relationship with its customers or, worse still, defending a lawsuit.

Drafting Terms of Use applicable to most e-commerce companies is not usually an expensive proposition.  Many attorneys who regularly prepare such terms do so on a "flat fee" basis for small companies and startups, so that the client can tell, at the outset, exactly how much the work will cost.

Full post as published by E-Commerce Law on June 02, 2008 (boomark / email).

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