22 October 2012

I WAS a bit interested until I read SpiderOak's illegal terms of service

I had been interested in SpiderOak's products until I read their FAQ, which breaches several parts of Australian law:
Help and Frequently Asked Questions/FAQ - SpiderOak.com: "As is stated in our Services Agreement (https://spideroak.com/services_agreement), SpiderOak is under no obligation to provide refunds of any kind on service. However, we do believe in standing behind our product and will evaluate specific requests on a case-by-case basis."
I've had a few questions about why this term is illegal in Australia.

The Australian Consumer Law is part of the Competition and Consumer Act 2010. The FAQ set out above breaches several sections of the Law.

Section 18 prohibits misleading and deceptive conduct, and the deception here is that there is "no obligation to provide refunds of any kind on service."

Section 29 prohibits making a false or misleading representation concerning the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy (including a guarantee under Division 1 of Part 3-2).

Section 64 does not permit statutory warranties to be avoided. It states:

(1) A term of a contract (including a term that is not set out in the contract but is incorporated in the contract by another term of the contract) is void to the extent that the term purports to exclude, restrict or modify, or has the effect of excluding, restricting or modifying: 
    (a) the application of all or any of the provisions of this Division; or
    (b) the exercise of a right conferred by such a provision; or 
    (c) any liability of a person for a failure to comply with a guarantee that applies under this Division to a supply of goods or services.

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