Terms of Service
1. California Consumer Privacy Act (CCPA)
If you are collecting personal data from California residents, you must comply with the California Consumer Privacy Act (CCPA). This law provides California residents with certain rights over their personal data, including:Right to know what personal information is being collected.Right to request deletion of personal information.Right to opt out of the sale of personal data.Right to non-discriminatory treatment when exercising their rights.You must include a section in your Terms of Service that explains:What personal information you collect.How it’s used.How users can exercise their rights under the CCPA (like the right to opt-out or request deletion).
2. California's Online Privacy Protection Act (CalOPPA)
CalOPPA requires businesses that collect personal data to have a privacy policy that is accessible to users. If your website collects personal data from California residents, your privacy policy must:Be easy to find and read.Include the types of personal data you collect and how it is used.Provide information on how users can review and request changes to their data.Detail how long data will be retained.If you make changes to the policy, users must be notified.
3. Prohibition on Forced Arbitration
California law prohibits certain types of forced arbitration clauses in consumer contracts. For example, a clause that requires consumers to arbitrate disputes in a way that is considered unfair to the consumer may be unenforceable.If your Terms of Service contain an arbitration clause, it must comply with California's rules for enforceability. In some cases, California courts have held that arbitration clauses cannot prevent a consumer from pursuing certain claims (such as claims under California’s consumer protection laws).
4. California Business and Professions Code § 17200 (Unfair Competition)
California law prohibits unfair business practices, so your Terms of Service should not include clauses that might be seen as deceptive, misleading, or that limit consumers' legal rights unfairly. Any clause that violates the spirit of the law may be challenged.Be cautious with terms that limit liability, impose excessive fees, or are vague in their terms.
5. The "Do Not Track" Mechanism
If your website tracks users' online activity, you must disclose how you handle "Do Not Track" (DNT) signals. Users in California have the right to control their online data and to be informed if tracking technologies are in place. You should explain in your Terms of Service how you honor DNT requests.
6. Sales to Minors
If you provide services or products to children under the age of 16, you must comply with California’s Child Protection Act (Cal. Bus. & Prof. Code Section 22580). This may require additional provisions in your Terms of Service related to the collection of personal information from minors.Parental consent may be required if you're collecting data from children under 13.
7. Provisions for Termination and Changes to the Terms
You must include provisions outlining how users can terminate their use of the service and how you can change the Terms of Service. California law allows users to be notified of any material changes to the agreement, and they should have an option to opt out of certain updates (especially those that affect user rights or privacy).
8. California's Consumer Legal Remedies Act (CLRA)
This law provides protection for consumers against deceptive practices, including false advertising and fraud. Your Terms of Service should not mislead or deceive users about your services or their rights. If you do, the user may have a legal cause of action under the CLRA.
9. Automatic Renewals
California law requires specific disclosures for automatic renewal clauses in contracts (California Business and Professions Code Section 17600). You need to:Clearly disclose any terms relating to automatic renewals or subscriptions.Obtain the user’s consent before enrolling them in any automatic renewal or continuous service plan.Provide a clear method to cancel automatic renewals.
10. Dispute Resolution and Venue
While you may include a dispute resolution clause (such as mediation or arbitration), ensure that it complies with California law. It’s generally recommended that any clause concerning dispute resolution be fair and transparent.If you specify a venue for litigation (such as a court in a particular state), it must be convenient and not overly burdensome for the user. Courts in California may invalidate a venue provision if they find it to be unfair or unreasonable.
11. Prohibited Terms
Certain types of clauses are deemed unenforceable in California, including clauses that:Waive rights to class-action lawsuits.Limit a consumer’s ability to exercise their legal rights.Are so vague that a reasonable person cannot understand their impact.
