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Will the FTC Target EULAs Next?

A few weeks ago, we discussed news that the Federal Trade Commission was planning to look into DRM and the way its characteristics are communicated to customers. Now, Joystiq's Law of the Game column speculates that EULAs could be on the FTC's list to review as well. "I would be willing to guess that within the next few years, the often maligned End User License Agreement ('EULA') may fall into the realm of being regulated as further 'consumer protection.' Is it necessary? ... The first and most common method [of consumer protection] is what is known as a 'plain language requirement.' The idea is that contracts written by lawyers are full of legal terms and are written in such a way that it takes a lawyer to decipher the actual meaning of all of the clauses. ... on the complete opposite end of the spectrum, it could be required that companies abandon EULA contracts all together in favor of a collection of FTC approved bullet points. The development and legal communities would, I assume, vehemently oppose this idea, but it is possible. Basically, the FTC would come up with a list of things all EULAs include, then a list of optional provisions that the licensor (the game company) could include."

2 of 116 comments (clear)

  1. Bah! Leave It Alone by BlueStrat · · Score: 4, Insightful

    Anyone actually think the government is getting involved to make EULAs fair for consumers?

    I mean, think about it. Right now, they're basically fairly unenforceable without the corporation and EULA in question having to go to court and at the minimum get a decision in a particular case and maybe set an individual precedent.

    If EULAs basically have no or very little legal weight currently, what's the purpose of the FTC getting involved, unless it's to give them force? Especially now that there's a more media-and-entertainment-industry-friendly government in power now.

    Having the FTC get involved means that EULAs will then have a legal framework of government regulations to back them up. It's certain that any such regulations will allow consumers to get bent-over all legal-like, either by what's actually in the regulations, or what they allow by omission and loopholes in the wording.

    In looking out for citizens' rights and interests vs corporate interests & profits, I trust the government about as far as I can throw the US Capitol Building.

    Cheers!

    Strat

    --
    Progressivism (aka US 'Liberalism'): Ideas so good they need a police/surveillance-state to enforce.
  2. EULAS by scientus · · Score: 4, Insightful

    EULA's are not very enforceable: users don't agree to them and they are contracts of adhesion.

    No papers are signed, both parties do not generally agree, and they are filed with unconscionable statements.

    Almost all EULAs claim to limit users right to resell the software, however this is unenforceable due to the First-sale doctrine

    Copyright gives sole right to its holder the right to create copies of works, however it does not allow that holder to control what their work is used for after it has been purchaced. (besides having purchasers not make more copies of it)