POLL – How should we deal with harmful license terms?

Privacy

We blogged last week, once again, about the fact that people fail to read the license terms they approve when installing software. That post was inspired by a Chrome extension that monetized by collecting and selling data about users’ surfing behavior. People found out about this, got mad and called it spyware. Even if the data collection was documented in the privacy policy, and they technically had approved it. But this case is not really the point, it’s just an example of a very common business model on the Internet. The real point is what we should think about this business model.

We have been used to free software and services on the net, and there are two major reasons for that. Initially the net was a playground for nerds and almost all services and programs were developed on a hobby or academic basis. The nerds were happy to give them away and all others were happy to get them for free. But businesses run into a problem when they tried to enter the net. There was no reliable payment method. This created the need for compensation models without money. The net of today is to a significant part powered by these moneyless business models. Products using them are often called free, which is incorrect as there usually is some kind of compensation involved. Nowadays we have money-based payment models too, but both our desire to get stuff for free and the moneyless models are still going strong.

So what do these moneyless models really mean? Exposing the user to advertising is the best known example. This is a pretty open and honest model. Advertising can’t be hidden as the whole point is to make you see it. But it gets complicated when we start talking targeted advertising. Then someone need to know who you are and what you like, to be able to show you relevant ads. This is where it becomes a privacy issue. Ordinary users have no way to verify what data is collected about them and how it is used. Heck, often they don’t even know under what legislation it is stored and if the vendor respects privacy laws at all.

Is this legal? Basically yes. Anyone is free to make agreements that involve submitting private data. But these scenarios can still be problematic in several ways. They may be in conflict with national consumer protection and privacy laws, but the most common complaint is that they aren’t fair. It’s practically impossible for ordinary users to read and understand many pages of legalese for every installed app. And some vendors utilize this by hiding the shady parts of the agreement deep into the mumbo jumbo. This creates a situation where the agreement may give significant rights to the vendor, which the users is totally unaware of.

App permissions is nice development that attempts to tackle this problem. Modern operating systems for mobile devices require that apps are granted access to the resources they need. This enables the system to know more about what the app is up to and inform the user. But these rights are just becoming a slightly more advanced version of the license terms. People accept them without thinking about what they mean.

This may be legal, but is it right? Personally I think the situation isn’t sustainable and something need to be done. But what? There are several ways to see this problem. What do you think is the best option?

 

 

The good news is however that you can avoid this problem. You can select to steer clear of “free” offerings and prefer software and services you pay money for. Their business model is simple and transparent, you get stuff and the vendor get money. These vendors do not need to hide scary clauses deep in the agreement document and can instead publish privacy principles like this.

 

Safe surfing,
Micke

 

 

Photo by Orin Zebest at Flickr

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