As an App developer, you invest significant time, energy and money into creating and marketing your Apps. It is important that you take steps to make sure that you protect your App and, ultimately, your business when users begin to interact with it. Your App terms and conditions set out how users can use your App. They act as an essential roadmap for users. They detail what is acceptable and highlight any limitations or disclaimers users should be aware of. This article will set out why incorporating a disclaimer and liability clause in your App terms and conditions is important and what this clause should address.
Overview: What Your App Terms and Conditions Should Cover
App terms and conditions (T&Cs) act as an agreement between you (the App developer or provider) and your end users. They cover important aspects, including:
- acceptable use;
- privacy and security;
- copyright; and
- intellectual property.
Purpose of a Disclaimer and Liability Clause
A disclaimer and liability clause is to ensure that your liability is limited as the App developer.
It is important as it sets the extent of your liability if:
- something goes wrong; or
- a user suffers some loss as a result of using the App.
The type of disclaimer or liability clauses in your T&Cs will depend on the nature and function of your App.
Disclaimers and App Content
For example, suppose you are providing information about health, fitness or nutrition. You should disclaim that your App should not substitute medical advice and that you are just providing information about these topics.
Another example is if you are providing financial information or advice in your App. You should disclaim that this is not tailored to the user’s particular situation.
Continue reading this article below the formProtection Limitation
Under the Australian Consumer Law (ACL), there are consumer guarantees that you cannot contract out. If they apply to your App, you must satisfy these obligations. These include prohibiting misleading and deceptive conduct when trading and providing misleading or fraudulent information to users.
It is, therefore, prudent that your T&Cs set out the following in addition to the disclaimer and liability clause:
- that all users who use your App do so at their own risk;
- that you are not responsible for any outcome of using the app; and
- that you do not make any warranties or representations as to the content of the App, its quality or availability.
Disclaimer and Third-Parties
Where your App involves the interaction of parties outside the App, for example, meeting up, or selling or buying products, you should disclaim that you have not approved of or screened other users and that you are not responsible for what they do outside of the App. You should also limit your liability to the fullest extent possible and ensure that users indemnify you against claims and legal actions. This is particularly so from any third-party interactions that occur outside of the App.
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Key Takeaways
When drafting your App terms and conditions, it is important to have in place full disclaimers to protect your business and limit your liability. It is necessary to consider the nature of your App and its services to determine how your disclaimer and liability clause should be drafted. For example, having an App that provides advice or allows users to meet up can expose you to avoidable risks. In such instances, a robust disclaimer and liability clause should be in place.
If you need assistance in drafting your App terms and conditions or require further information on how you can protect yourself, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to address your questions and assist with drafting or reviewing documents that will protect your business. Call us today on 1800 534 315 or visit our membership page.
Frequently Asked Questions
Having a disclaimer and liability clause limits your liability if something goes wrong or if a user suffers some form of loss by using your App. It is a safety mechanism to protect you and is important.
No. It is important to note that the presence of other laws may override the protective function of a disclaimer and liability clause. For example, there are some consumer guarantees that you cannot contract out under the Australian Consumer Law. If you fail to comply with such requirements, the presence of a disclaimer and liability clause might not be enough to reduce your liability.
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