Rant of the Week

Unenforceable Clauses

Marilyn Shafer of the New York State Supreme Court has just issued a ruling that all of us should celebrate.

Network Associates, a software company that makes anti-virus software, had a little clause in their customer purchase agreement that should sound familiar to most of us, in tone if not exact content.

The clause states that no customer may review the product purchased without the prior consent of Network Associates.

I know from my experience arguing with people on the internet that a lot of people firmly believe that a company can force you to agree to anything as a condition of buying and using their product.  These people believe that there is some kind of absolute right of private property out there, that companies have no obligations to society other than to provide the product they promised on the terms they specified to the customer who agrees and pays.

But companies do not exist in a vacuum.  Like you and me, they are part of a complex of relationships and obligations that constitute membership in a society.  If you live in America, you have to obey the law, pay your taxes, and shoulder your share of the burden of providing roads and schools and policing for everyone-- unless, of course, you are a rich person under a Republican administration.

In return for meeting your obligations, you receive enormous benefits.   You receive protection from the police, medical care, education, roads, assistance in times of natural disaster, military protection from foes abroad, and so on. 

If you don't like that deal, you can, as they say, go live elsewhere.

Network Associates benefits from all of these and more.  Their employees acquired their skills from publicly funded schools and universities.  Their products are delivered on our roads and through our airports.  They are protected by laws and police, from arbitrary search and seizure (until the Homeland Security Act was passed).  They benefit from the enormous structure of laws and procedures that constitute our economic system.  As a result, they have an obligation beyond the simple power of setting conditions of sale, to observer generally agreed upon rules of conduct in our society.

The Supreme Court of New York State has struck a blow for freedom of speech and consumer rights, and simultaneously raised the issue of whether these myriad conditions imposed by vendors upon customers are actually "enforceable".

Not only did Judge Shafer rule that the clause was unenforceable.   She indicated that there will be fines in the millions of dollars.  She is going to punish Network Associates for trying to trick people into obeying a rule they had no business imposing on people.

I like this judge, and I hope you do too.

 

All contents copyright 2003 Bill Van Dyk