Manage Your Finance

Read it first before you Click

Does this ring a bell? "Click Here If You Agree To Our Terms and Conditions."

Whether you've made an online purchase, joined a social networking site or simply have booted up your new computer for the first time, odds are you were cruising along until you hit this little roadblock.

If you're like most people, you quickly scroll to the end of the page and click through so you can get on with what you were trying to do in the first place.

But do you really know what you're agreeing to? Are you aware that by clicking "I Agree," you are signing a legally binding agreement?

Most people have come to regard the online version of the TOS (Terms of Service) document as a pain in the you-know-what, but when problems arise later on, such as when monthly fees begin automatically coming out of your bank account or your information is sold to a third party vendor, it's the first place the company directs you to for an explanation.

Cries of "Nobody reads those things" won't help you now. After all, you agreed that you read and understood the TOS. And you can't say that you're not familiar with them. These days, there's a TOS for everything. Violate it and you can find yourself banned from your favorite social networking site, massively multi-player online game (MMOG) or even the very Internet service you use to get online.

For the most part, the TOS is detailed to protect the company providing the service from negligent acts performed by the end-user. For instance, an online multi-player game may ban a user for sexual innuendo or behavior, or a social site may restrict certain inappropriate or copyrighted photographs or content. Internet providers usually impart strict restrictions on the downloading of illegal media or the use of their services for spamming purposes.

While most Terms of Service are understandable, some can be outright crazy. In 2008, a major communications company sent out an 8,000-word update to its TOS agreement. The TOS came in a guidebook format that was 2,500 pages long, twice the heft of the latest Stephen King novel. This update stated that it was not possible for any user to sue the company under any circumstances, as well as a host of other non-user-friendly agreements. California lawmakers called the TOS alteration illegal and quickly worked to force the communications giant into editing their terms.

In another instance, in February of 2009 a popular social networking site altered their TOS to state that they had the right to use their member's content as they saw fit - forever. Thanks to an overwhelming response from its members, the site eventually withdrew the alteration.

These two cases may be extreme, but it's inside the Terms of Service that most companies place the none-too-consumer-friendly information. In this era of speed-of-light transactions, it pays to stop for a minute and finally follow your old man's advice: "Read the fine print."