Friday, October 11, 2019

Word of the Day: clickwrap agreement

 
Word of the Day WhatIs.com
Daily updates on the latest technology terms | October 11, 2019
clickwrap agreement

A clickwrap agreement, also known as a click-through, shrink-wrap, or sign-in-wrap, is an online agreement in which the user signifies his or her acceptance by clicking a button or checking a box that states "I agree." The purpose of a clickwrap agreement is to digitally capture acceptance of a contract.

Clickwrap agreements permit companies to engage in a contract with customers without negotiating with each user individually. To be a considered legitimate, the contract must:

  1. Be reasonably and prominently visible to all users.
  2. Require active, affirmative consent.
  3. Be easily understood by the average user.
  4. Be enforceable.

Clickwrap agreements are a digital offshoot of shrink wrap licenses. In the last century, when most software was installed locally, shrink wrap licenses were commonly used by software vendors to protect their intellectual property. When the customer removed the plastic shrinkwrap that protected a new software floppy disk or compact disk, they were contractually indicating they agreed with the software vendor's terms of service.

Use cases for clickwrap agreements

Today, online users encounter clickwrap agreements regularly. Some examples include:

  • Asking website visitors to acknowledge that the website they are visiting uses cookies.
  • Completing an online registration form.
  • Installing a mobile app.
  • Purchasing a cloud service.
  • Connecting to a wireless network.

Clickwrap agreements and the law

 

Clickwrap contracts are often used in situations where the same boilerplate contract needs to be offered or signed hundreds, thousands or millions of times. Common uses include contracts that support online privacy policies or terms and conditions for accessing member-protected website content.

 

It is a best practice to call out the existence of the contract through a pop-up window that has a checkbox and contains language such as "I agree to the terms and conditions." There should also be a hyperlink to a webpage that documents the full agreement the user is accepting.

 

Most of the time, clickwrap and shrink wrap agreements are made and never mentioned or thought of again. If the terms of the contract are violated, however, there can be serious legal and financial consequences.

 

Should there be a need to defend a clickwrap agreement in court, the entity that issued the contract needs to have sufficient documentation to prove when and where the agreement was signed. This includes an indisputable record of what version of the contract was being displayed at the time the agreement was accepted and how the website looked to the user.

Quote of the Day

 
"While litigation around clickwrap agreements isn't common, it is increasing significantly year over year." - Brian Powers

Learning Center

 

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Learn best practices for preventing cloud vendor lock-in long after contract negotiations with cloud service providers are complete.

Negotiating SLA requirements to ensure cloud regulatory compliance
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Cloud data breach notification: Defining legal obligations
IT security expert Francoise Gilbert details cloud data breach notification requirements. How can you be sure when regulated data is wrongfully accessed or compromised in the cloud?

Developing cloud computing contracts
Learn the critical considerations for cloud computing contracts in order to protect your organization.

Cloud computing contracts: Tread carefully
Organizations must be careful with cloud computing contracts, according to a panel of lawyers at the RSA Conference 2011. Cloud computing contracts should include many data protection provisions but organizations may not get them.

Quiz Yourself

 
Due to a configuration problem, _____ email servers are down and users have no access.
a. you're
b. your

Answer

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For feedback about any of our definitions or to suggest a new definition, please contact me at: mrouse@techtarget.com

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