We’ve been receiving a lot of questions lately as to why Legacy Locker doesn’t “guarantee” user data against loss, corruption, theft or other shenanigans.
That got us thinking – Why don’t we guarantee our members’ content? The easy answer is that our lawyers told us not to because it would expose us to all kinds of liability. So, we never really put a lot of thought into any such guarantees. But then we asked ourselves: Should we guarantee? Is it the “right” thing to do? Or are we just being paranoid and trying to cover our…ass..ets…in the event disaster strikes?
Aside from the legal implications, any security breach would be disastrous. We pride ourselves on the security apparatus we have already put into place. Practically speaking, it is far superior to what most other websites currently employ. But what about other websites we all use every day? We depend on them to ensure our data is protected, and they depend on our trust. This begs the question: Do any of the major websites guarantee our stored information?
For banking institutions and credit card companies, it is good business to reimburse their customers if someone hacks into an account, steals an ATM card or “phishes” credit card numbers off an unsecure connection. These companies understand that they MUST do something to instill trust in the system. That’s why they agree to make you whole again: not because they’re legally liable, but because it’s just good business. But the question remains (FDIC Insurance aside): Are they legally responsible for reinstating your trust and funds? I thought so until I read the fine print.
I was surprised to discover that not one of the major websites (Google, Facebook, Yahoo, Citibank, etc.) assumes liability for the content you store online; the banks don’t either. All have pretty strong language in their Terms of Service that eliminate their liability from just about anything and everything (including Yahoo’s disclaimer about seizures that may result from looking at the monitor for too long).
Essentially, they’re all the same. It’s fairly boilerplate language that encompasses two main themes: Full disclaimer of warranties and complete limitation of liability.
Disclaimer of Warranties – this means that the site is provided to you “as is” and the user has no reasonable expectation that the website will function properly, protect your stored data or be free from error. It’s similar to buying a piece of property with a quitclaim deed. No warranties or guarantees. You’re buying it how it is and have no right to protest if it doesn’t work to your expectations.
Limitation of Liability – When using these sites, you are agreeing they will not be liable for just about any type of damage or loss you may incur. These limitations extend to loss of profit, goodwill or business reputation, or other intangible losses.
Facebook is a different kind of animal than other more traditional storage websites. Specifically, they do not guarantee that User Content you post on the site will not be viewed by “unauthorized persons” and it is not responsible for circumvention of any privacy or security measures contained on the site. You should also know that even after you deactivate your account, your content may be cached and archived, thus still viewable.
So although online content is rarely, if ever, subject to an all-inclusive guarantee, our security infrastructure is superior to best practices because, above all, we respect our clients and their information, and have utilized every known strategy in protecting their sensitive data.
Below are links to some major websites’ Terms of Service regarding protection of your valuable data.
We would love to hear your thoughts on the matter.
Gregg Delman
Director of Business Development
Please note that the material contained in this blog is not legal advice and is not to be relied upon in a court of law. Furthermore, any federal tax advice contained in this communication, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (i) avoiding tax-related penalties under Internal Revenue Code or (ii) promoting, marketing or recommending to another party any tax related matters addressed herein.
