Yes, You Really Do Need to Read Through Those Long Service Agreements—Here’s Why
On a list of things more boring than watching paint dry or grass grow, reading a service agreement comes out on top. These documents are usually long and unnecessarily complicated. Even Andrew Pickett, a trial attorney in Melbourne, Florida, admits they can read like a maze of unfamiliar jargon. Yet he suggests all users take the time to read and understand the terms and conditions, asking questions if necessary.“The stakes can be surprisingly high if you skip over them,” Pickett says. “You might inadvertently agree to terms that waive significant rights or impose hidden fees when you don’t read these agreements.” While trial attorneys like Pickett represent folks who’ve been injured in all sorts of accidents, they might not be able to help you if you’ve unknowingly signed away your rights.Unfortunately, says criminal defense attorney Benson Varghese, companies pack service agreements with clauses that limit your rights in ways you probably don’t expect. Two recent cases illustrate the importance of understanding service agreements before you sign them. Read on to find out what can happen if you don’t read service agreements, whether you can use a service without agreeing to the terms and more insight from the legal pros.GetReaders DigestsRead Up newsletter for more money, tech, travel, humor and fun facts all week long.Do you really need to read those service agreements?Absolutely. “I get itreading through all the fine print in those service agreements is a total snoozefest,” says Varghese. “But as someone whose job focuses on the implications of legal documents, I can’t stress enough how critical it is to actually review them, especially before you click ‘Agree.'”And make sure you’re reading them clearly. Like making major purchases on your phone, reading service agreements on a small smartphone screen makes it harder to see detailslike fine print asking you to sign away your rights. What’s more, the website might not be optimized for mobile, which means you could accidentally click a box and sign something you might not have if you could see everything clearly on a larger screen.What can happen if you don’t read service agreements?By clicking “Agree” without reading the full terms, you could be giving up privacy rights you might’ve otherwise protested. You may be signing up for additional fees (which is why it’s always a good idea to double-check all the charges on your phone bill). You might even be violating the terms of service without realizing it.And you could unknowingly waive your right to legal action. That’s what happened with two recent cases involving Uber and Disney. The brands own multiple entities, and signing a service agreement for one (say, the Disney+ streaming service) means you’ve signed away your rights to all (including Disney theme parks).It sounds impossible to believe, but it’s true. “Even if certain parts can seem disjointed or unclear, they are enforceable by law,” Varghese says.The Uber caseJohn and Georgia McGinty were taking an Uber when the driver sped through a red light and got hit by another car. Georgia sustained cervical, lumbar, spine and rib fractures in the accident, as well as other injuries requiring surgery. John had a fractured sternum and a wrist injury that currently restricts his use of his wrist. The New Jersey couple tried to sue the company, but a court has ruled they legally can’t. And it’s all because of a related service agreement.The McGintys’s daughter had previously signed a service agreement for an Uber Eats order using her mother’s phone. Because Uber’s updated terms and conditions are the same for both Uber Eats and the Uber ride app, the McGintys are unable to take Uber to court (though their attorney says they will most likely petition the New Jersey Supreme Court to reconsider the enforceability of the terms across platforms).“At first glance, dinner delivery seems unrelated to waiving your ability to take legal action later,” Varghese warns. “But that’s how broad these agreements are writtenyou can easily give up more rights than you realize.”The Disney caseJeffrey Piccolo signed a service agreement for a one-month trial subscription to Disney+ in 2019, which prohibits him from suing Disney after Kanokporn Tangsuan, his late wife, died of a severe allergic reaction after eating in a theme-park restaurant. Tangsuan had a severe nut and dairy allergy and had repeatedly confirmed with her server that her meal was allergen-free. But 45 minutes after the meal, she had trouble breathing and collapsed on the floor despite self-administering an EpiPen.Disney was trying to get the case dismissed, saying Piccolo agreed to an arbitration clause when he accepted the Disney+ service agreement. (In arbitration, a dispute is overseen by a neutral third party and resolved out of court.) Thanks to public backlash, however, the company is no longer asking the court to dismiss the case.“Arbitration law is terribly anti-consumer, and nearly all consumer disputes are banished to arbitration, where the deck is stacked against victims,” says class-action trial attorney Danny Karon. “In the Disney case, had the court ruled on Disney’s arbitration motion, there’s a pretty good chance it would have sent the plaintiff’s case to arbitration, claiming the law provided no other choice.”Karon adds that there’s no good news on the arbitration front. “Until Congress forbids arbitration agreements in consumer contractsas it recently did in the sexual-harassment spacethey’re here to stay,” he says.If you don’t sign a service agreement, can you still use the service?Mark Hirsch is a personal-injury lawyer in Fort Lauderdale, Florida, who understands that service agreements are long and hard to understand. But he points out that you can use the service only if you sign the agreement.“Most businesses need your permission before officially binding you to their terms,” Hirsch says. “You might not have to sign anything to use a service, but sometimes, you still agree to the rules without realizing it. It’s called a ‘clickwrap’ or ‘browsewrap’ deal, and your continued use means you agree to it.”This leaves you with three options: Ignore it and click “accept,” read the terms or don’t use the service. You already know why accepting the terms without reading them is a bad idea. And Karon says you don’t really have a choice if you want to use the product or serviceyou can’t even shop around because the agreements are everywhere. It comes back to all of our legal experts’ advice: Read those service agreements!What happens if you’re trapped by a service agreement?If you’ve been harmed by a company but can’t sue because of a service agreement you accepted in the past, Karon shares his best legal advice. “In a dispute, my advice is to file in small claims court, which is a hack that can get you out of a forced arbitration clause because often, it’s cheaper for a defendant to settle than to hire counsel to move to stay and compel arbitration,” he explains. “Or as occurred with [a recent case involving] Amazon, consumers should band together to give defendants what they asked for: a mass arbitration. Both techniques could help mollify an otherwise completely unfair litigation landscape.”About the expertsAndrew Pickett is an award-winning trial attorney and the founder of Andrew Pickett Law in Melbourne, Florida. He began his career as a prosecutor at the 18th Circuit State Attorney’s Office, where he fell in love with jury trials before founding his firm, where he’s tried, to verdict, more than 50 jury trials over the past 10 years.Benson Varghese is a criminal-defense attorney and the founder and managing partner of Varghese Summersett, a 50-person law firm in Texas. Varghese has been recognized as a Top 100 Trial Attorney by the National Trial Lawyers Association and a top attorney by Fort Worth magazine every year since 2012.Danny Karon is a class-action trial attorney specializing in antitrust, consumer fraud and wage and hour litigation at Cleveland-based Karon LLC. He’s an adjunct professor of class-action law at top universities such as the University of Michigan Law School and Ohio State University, and he has taught complex litigation at Columbia Law School.Mark Hirsch is a personal-injury lawyer and the co-founder of Templer & Hirsch law firm in Fort Lauderdale, Florida. Hirsch understands the intricacies of service agreements and has helped clients with legal issues for more than 30 years.Why trust usReader’s Digest has published hundreds of articles on personal technology, arming readers with the knowledge to protect themselves against cybersecurity threats and internet scams as well as revealing the best tips, tricks and shortcuts for computers, cellphones, apps, texting, social media and more. For this piece on service agreements, Jaime Stathis tapped her experience as a longtime journalist who covers technology, scams and cybercrime for Readers Digestto ensure that all information is accurate and offers the best possible advice to readers.We rely on credentialed experts with personal experience and know-how as well as primary sources including tech companies, professional organizations and academic institutions. We verify all facts and data and revisit them over time to ensure they remain accurate and up to date. Read more about our team, our contributors and our editorial policies.Sources:Andrew Pickett, trial attorney and founder of Andrew Pickett Law in Melbourne, Florida; email interview, October 2024Benson Varghese, criminal-defense attorney and founder and managing partner of Varghese Summersett law firm in Texas; email interview, October 2024Danny Karon, class-action trial attorney and law professor at the University of Michigan Law School and The Ohio State University; email interview, October 2024Mark Hirsch, personal-injury lawyer and co-founder of Templer & Hirsch in Fort Lauderdale, Florida; email interview, October 2024CNN: “Couple in a severe Uber crash can’t sue because of an Uber Eats order”AP News: “Disney drops bid to have allergy-death lawsuit tossed because plaintiff signed up for Disney+”How to E-Sign Your DocumentsWays to Improve Your Online SecurityThese Are the Worst Apps for PrivacyThe post Yes, You Really Do Need to Read Through Those Long Service Agreements—Here’s Why appeared first on Reader's Digest.
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