Software Contracts Confusing

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Review the contracts that accompany computer software.

Before a new piece of software can be installed on a PC, a legally-binding contract, known as an End User Licence Agreement (EULA) must be agreed to.  Computing Which? believes many EULAs are difficult to understand and access, often drafted to the detriment of the consumer and are in breach of the Unfair Terms in Consumer Contracts Regulations (1999). 

In this paper, Clauses 5.1 and 7.1: Clause 5.1 states that "a contractual term … shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer". Clause 7.1 meanwhile states that "a seller or supplier shall ensure that any written term of a contract is expressed in plain, intelligible language".

Computing Which? has written to 20 software publishing companies with a list of recommendations on reviewing their contracts, asking that they are re-written in plain English, so consumers can clearly understand what it is they are signing and presented clearly and concisely.  Thye have also requested that they are accessible; i.e. able to be printed as well as read onscreen and tailored to the country of purchase. So if someone buys software in the UK, it comes with a UK-specific licensing agreement.  They should also clearly explaining consumer rights and be put on the market with a returns policy, in the event that people decline the EULA.

Jessica Ross, editor of Computing Which? said that millions of people every year sign these legally binding contracts. The language they are written in means people can't always understand what they are agreeing to and often don't realise that they could be signing their rights away with a single mouse click.

Watch this space for updates.

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