SHORT FORM EULA DISCLOSURE STATEMENTS
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End user license agreements have become long, complex, non-negotiable documents that are often not understandable even to lawyers. Further, because of the people who draft them also control the websites where they are published, the terms can change unexpectedly and archival copies of these terms are often unavailable for later review by the consumers and small businesses (ostensibly) bound by them. They face an evidentiary problem in demonstrating the terms of the original deal.
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Improving technology competition requires enhancing user market choice by giving consumers and businesses the ability to compare material contract terms at the point of agreeing to them (and to enforce contract rights later). This competition enhancement can be accomplished through the creation of short form disclosure statements explaining material contract terms. Modeled on (the spirit of) securities regulation filings, real estate and other disclosure forms, and food labeling approaches, this type of uniform disclosure allows for easy head-to-head comparison of products and services and encourages independent analysis to guide informed market choices. It also builds marketplace trust.
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Below please find a model disclosure form for discussion purposes.
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Competitive Licensing in Internet Contracts (CLIC)
Uniform EULA Disclosure Form
Reporting Person: ______________________________
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Covered Product(s) or Service(s): ______________________________ Purpose: _______________________________
______________________________ Purpose: _______________________________
______________________________ Purpose: _______________________________
______________________________ Purpose: _______________________________
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Monthly Purchasers and Active Users in [state] - average of last 12 months: ______________________________
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Used in connection with:
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Financial services: __yes __no
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Investment opportunity: __yes __no
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Health or wellness: __yes __no
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Education: __yes __no
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Farming: __yes __no
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Government: __yes __no
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Insurance: __yes __no
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Transportation: __yes __no
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Journalism: __yes __no
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Public company: __yes __no
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Consumer products (inedible): __yes __no
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Consumer products (edible): __yes __no
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Raw materials: __yes __no
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Government services: __yes __no
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Business opportunity/ franchise: __yes __no
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Data storage or processing: __yes __no
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Content creation services: __yes __no
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Advertising/ endorsement services: __yes __no
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Hospitality: __yes __no
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Other personal services:___________ __yes __no
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Targeting seniors: __yes __no
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Targeting minors: __yes __no
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1. GENERAL:
Word count of all terms (including all terms incorporated by reference): [number]
Estimated read time (in minutes): [word count divided by 200]
Last update: [date]
2. COSTS OF USE:
Fees (currency): __yes __no​
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One time: __yes __no
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Mandatory Subscription: __yes __no
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Optional Subscription: __yes __no
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Categories of data collected – mandatory:
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Biometrics: __yes __no
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Location: __yes __no
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Viewing history/clickstream: __yes __no
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Purchase history: __yes __no
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Contacts/Friends __yes __no
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Audio: __yes __no
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Video: __yes __no
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Other application use: __yes __no
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Other: __yes __no
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Description: _____________________________________
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Categories of data collected – optional:
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Biometrics: __yes __no
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Location: __yes __no
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Viewing history/clickstream: __yes __no
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Purchase history: __yes __no
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Contacts/Friends __yes __no
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Audio: __yes __no
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Video: __yes __no
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Other application use __yes __no
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Other: __yes __no
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Description: _____________________________________
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Third party data services providers:
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Biometrics: __yes __no
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Location: __yes __no
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Viewing history/clickstream: __yes __no
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Purchase history: __yes __no
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Contacts/Friends __yes __no
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Audio: __yes __no
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Video: __yes __no
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Other application use __yes __no
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Other: __yes __no
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Description: _____________________________________
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Targeted advertising: __yes __no
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Personal: __yes __no
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Demographic: __yes __no
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Content-based/contextual: __yes __no
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Audio-triggered: __yes __no
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Rights granted by users to reporting person:
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Content: __yes __no
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Use for marketing/licensing: __yes __no
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Use for AI training: __yes __no
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Ownership: __yes __no
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Other: __yes __no
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Description: ______________________________
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Data collection always-on by default: __yes __no
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Can be disabled in settings: __yes __no
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Always-on internet required for use: __yes __no
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Software download required for use: __yes __no
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Maintenance limitations/ DRM: __yes __no
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Deletion of data on contract termination: __yes __no
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User contract termination contact: _____________________________
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Response time: ___________________________
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Modification of data use:
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Contact information for request: ______________________________
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Response time: ___________________________
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Security and privacy inquiries:
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Contact information: ___________________________________
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Response time: ___________________________​​
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​Data sharing:
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Across products/services: __yes __no
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With partners and affiliates: [list of subsidiaries, parent companies, and affiliates]
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Reportable data breaches/security compromises during the last five years:
Date State Number of users impacted Nature of the incident
__________ ___________ ___________ ___________
__________ ___________ ___________ ___________
__________ ___________ ___________ ___________
[additional lines as appropriate]
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3. LEGAL RISKS:
Extent of user liability: __ unlimited __ limited to $___ __limited to financial investment
Mandatory arbitration: __ yes __ no
Class action waiver: __ yes __ no
Risk of physical injury from malfunction/error/compromise (if used as stated above): __ yes __ no
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If yes, explain: ____________________
4. CONTACT:
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Consumer questions: [email or link]
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Security contact: [Name/team and email/link]
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Intellectual property/legal contact: [Name/team and email/link]
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Software Bill of Materials (SBOM) available upon request: __yes __no
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Contact for SBOM: ____________________​
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5. WARRANTIES:
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Additional material terms: _______________________________________________________________
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Remote deactivation of access technologically possible by reporting person: __yes __no
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Deactivation/termination upon change of control/ sale of assets: __yes __no
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Bankruptcy planned in the next calendar year: __yes __no
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Period of guaranteed software support: _____________________​​​​
6. PLAIN TEXT OF (1) EULA AND (2) ALL ADDITIONAL ENFORCEABLE TERMS THAT ARE INCORPORATED BY REFERENCE:
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