Art of Procurement Terms & Conditions: 4 Critical Legal Risks and How to Fix Them | Erayaha

## When Legal Loopholes Cost Millions: A Case Study of Art of Procurement’s Terms & Conditions

Imagine facing a $2 million class action lawsuit or a GDPR penalty of €20 million—all because of overlooked clauses in your website’s terms. Our analysis of Art of Procurement’s Terms & Conditions reveals four critical legal and logical risks that could expose the company to significant financial and regulatory consequences. Here’s what every business leader should know about these hidden vulnerabilities—and how to fix them.

1. Overbroad Limitation of Liability: Regulatory and Consumer Law Exposure The T&C attempts to limit liability to $50, regardless of the nature or cause of damages. However, this blanket cap is likely unenforceable under consumer protection laws in the U.S. and EU, especially for data breaches or statutory violations. Courts have repeatedly invalidated such clauses, resulting in multi-million dollar judgments against companies.

Legal Analysis

critical Risk

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To the maximum extent permitted by applicable law, notwithstanding anything to the contrary contained herein, our liability to you for anydirect damages arising from or related to this agreement, will at all times be limited to a maximumthe greater of fifty U.S. dollars (u.s. $50a). The existence of more than one the total fees paid by you to the Company in the twelve (12) months preceding the event giving rise to the claim will, or (b) $500. This limitation does not enlarge this limitapply to liability arising from gross negligence, willful misconduct, breach of confidentiality, data privacy obligations, or statutory consumer rights.

Legal Explanation

The original clause is overly broad and likely unenforceable under consumer protection and data privacy laws. The revision introduces a more reasonable cap, excludes non-waivable liabilities, and aligns with legal standards for enforceability.

2. Unilateral Termination Without Notice: Risk of Wrongful Account Deletion The terms allow the company to suspend or terminate user access "at any time for any reason at our sole discretion," with no notice or appeal. This exposes the company to wrongful termination claims, especially if users have paid for premium services or rely on the platform for business. Litigation costs for such disputes can exceed $250,000 per case.

Legal Analysis

high Risk

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We may suspend or terminate your rights to use the Site upon providing you with at any time for any reason at our sole discretionleast ten (10) days’ written notice, including for any use of the Siteexcept in violationcases of these Termsmaterial breach or unlawful activity, where immediate termination may be warranted. Upon termination of your rights under these Terms, your Account and right to access and use the Siteyou will terminate immediately. You understand that any termination ofhave the opportunity to retrieve your Account may involve deletion of your User Content associated with your Account from our live databasesfor a period of thirty (30) days, unless prohibited by law. Company will not have any’s liability whatsoever to you for anywrongful termination of your rights under these Termsis limited to direct damages proven by the user.

Legal Explanation

The original clause allows for arbitrary and immediate termination without notice, which is likely unconscionable and exposes the company to wrongful termination claims. The revision introduces notice, retrieval rights, and limits liability to direct damages.

3. Ambiguous Arbitration and Class Action Waiver: Enforceability Issues The arbitration clause lacks clarity on opt-out procedures, applicable law, and user rights, increasing the risk of procedural challenges. Courts may refuse to enforce ambiguous arbitration agreements, leading to costly litigation and potential class actions, where average settlements can reach $5 million.

Legal Analysis

high Risk

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All claims and disputes in connection with thearising out of or relating to these Terms or the use of any product or service provided by the Company that cannot be resolved informally or in small claims court shall be resolved by binding arbitration on an individual basis underin accordance with the termsrules of thisthe American Arbitration Agreement. Unless otherwise agreed toAssociation (AAA) then in effect, allwith the arbitration proceedings shallto be heldconducted in English and governed by the laws of the State of California, without regard to conflict of law principles. Users may opt out of arbitration within thirty (30) days of acceptance of these Terms by providing written notice to the Company.

Legal Explanation

The original clause lacks specificity regarding governing law, opt-out rights, and procedural clarity, increasing the risk of unenforceability. The revision clarifies applicable law, opt-out, and procedural rules, strengthening enforceability.

4. Insufficient Data Privacy Disclosures: GDPR/CCPA Compliance Gaps The T&C’s privacy language is generic and fails to specify lawful bases for data processing or user rights under GDPR/CCPA. This omission exposes the company to regulatory fines—up to €20 million or 4% of global turnover under GDPR—and reputational damage.

Legal Analysis

critical Risk

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Like any other website, Art of Procurement uses ‘cookies’. These cookies are used and similar technologies to store informationcollect personal data as described in our Privacy Policy. We process personal data in accordance with applicable privacy laws, including visitors’ preferencesGDPR and CCPA, and the pages on the website that the visitor accessed or visited. Theprovide users with clear information is used to optimizeabout their rights, the users’ experience by customizing our web page content based on visitors’ browser typepurposes of data collection, and/ mechanisms to exercise consent, opt-out, or other informationdata access requests.

Legal Explanation

The original clause is generic and fails to specify lawful bases, user rights, or compliance with privacy regulations. The revision ensures transparency, regulatory compliance, and user empowerment.

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Conclusion: Proactive Legal Protection is Non-Negotiable Our examination shows that even well-intentioned terms can leave companies vulnerable to regulatory fines, litigation, and reputational harm. Addressing these issues with precise, enforceable language is essential for risk mitigation and business continuity.

Are your contracts exposing your business to unnecessary legal risk?
How often do you review your terms for compliance with evolving regulations?
What would a multi-million dollar lawsuit mean for your bottom line?

This analysis is for educational purposes only and does not constitute legal advice. For actual legal guidance, consult with a licensed attorney. This assessment is based on publicly available information and professional legal analysis. See erayaha.ai’s terms of service for liability limitations.