FLOW-3D Terms & Conditions: 4 Critical Legal Risks and How to Fix Them | Erayaha

## FLOW-3D’s Terms & Conditions: Uncovering Four Critical Legal Risks and Solutions

Imagine facing a $2M lawsuit over ambiguous liability or a GDPR fine of €20M for privacy missteps. Our analysis of FLOW-3D’s Terms & Conditions reveals four critical legal and logical risks that could expose the company to significant financial and regulatory penalties. Here’s what every business leader should know about these hidden vulnerabilities—and how to fix them.

1. Overbroad Liability Disclaimer: Unlimited Exposure The current T&C attempts to disclaim all liability, including for direct damages, regardless of cause. Courts routinely strike down such blanket waivers as unconscionable, especially if they exclude liability for gross negligence or willful misconduct. This exposes FLOW-3D to unpredictable litigation costs, potentially exceeding $2M per incident, and undermines enforceability in many jurisdictions.

Legal Analysis

critical Risk

Removed

Added

IN NO EVENT SHALL FSI AND/OR ITS RESPECTIVE SUPPLIERS BE LIABLE FOR ANY DIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE OR OTHERPUNITIVE DAMAGES WHATSOEVER (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS INTERRUPTION, OR LOSS OF BUSINESS INFORMATION), EVEN IF FSI HAS BEEN ADVISED OFEXCEPT TO THE POSSIBILITY OFEXTENT SUCH DAMAGES ARISE FROM FSI’S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR LIABILITY THAT CANNOT BE EXCLUDED BY LAW.

Legal Explanation

The original clause attempts to disclaim all liability, including for direct damages and gross negligence, which courts often find unenforceable. The revision carves out liability for gross negligence, willful misconduct, and non-waivable statutory obligations, improving enforceability and aligning with legal standards.

2. Intellectual Property Ambiguity: Unclear User Rights The T&C restricts copying and redistribution but fails to clarify permissible uses, derivative works, or user-generated content. This ambiguity can lead to IP disputes, lost licensing revenue, and costly enforcement actions—often exceeding $500K in legal fees and damages. Clearer definitions are essential for both compliance and revenue protection.

Legal Analysis

high Risk

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No logo, graphic, image, or video from this website may be copied or, retransmitted, or used to create derivative works unless expressly permitted by FSI in a written agreement. User-generated content remains the property of the user, subject to a non-exclusive, royalty-free license granted to FSI for display and marketing purposes.

Legal Explanation

The original clause is ambiguous regarding derivative works and user-generated content. The revision clarifies ownership and licensing, reducing the risk of IP disputes and aligning with industry norms.

3. Privacy Statement Lacks Regulatory Alignment While the T&C references privacy, it lacks explicit commitments to GDPR, CCPA, or data subject rights. This exposes FLOW-3D to regulatory fines up to €20M or 4% of global turnover, plus reputational harm and class-action risk. Modern privacy laws require clear, specific language on data collection, processing, and user rights.

Legal Analysis

high Risk

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FSI safeguards the security of thecollects and processes personal data you send usin accordance with physicalapplicable privacy laws, electronicincluding GDPR and management proceduresCCPA. For more information about our privacy practicesUsers have the right to access, viewrectify, or erase their data, and to object to certain processing activities as described in our full Privacy Policy.

Legal Explanation

The original clause lacks explicit reference to regulatory requirements and user rights. The revision ensures compliance with GDPR, CCPA, and similar laws, reducing the risk of regulatory fines and litigation.

4. Warranty Disclaimer Contradicts Consumer Protection Laws The T&C disclaims all warranties except those in the license agreement, but does not acknowledge non-waivable consumer rights under laws like the Magnuson-Moss Warranty Act (US) or EU consumer directives. This creates a legal loophole that can invalidate the disclaimer and result in statutory damages or regulatory action—potentially $100K+ per violation.

Legal Analysis

medium Risk

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THE SOFTWARE IS WARRANTED, IF AT ALL, ONLY ACCORDING TO THE TERMS OF THE LICENSE AGREEMENT. EXCEPT AS WARRANTEDNOTHING IN THE LICENSETHIS AGREEMENT SHALL EXCLUDE OR LIMIT ANY WARRANTY, FSI HEREBY DISCLAIMS ALL WARRANTIES AND CONDITIONS WITH REGARD TO THE SOFTWARERIGHT, INCLUDING ALL IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITYOR REMEDY THAT CANNOT BE EXCLUDED OR LIMITED UNDER APPLICABLE LAW, FITNESS FOR A PARTICULAR PURPOSE, TITLE ANDINCLUDING NON-INFRINGEMENTWAIVABLE CONSUMER RIGHTS.

Legal Explanation

The original clause attempts to disclaim all warranties, which may violate consumer protection laws. The revision acknowledges statutory rights, reducing the risk of regulatory action and ensuring enforceability.

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Conclusion: Proactive Legal Protection is Essential Our examination shows that FLOW-3D’s current T&C contains high-impact legal risks that could result in multi-million dollar liabilities, regulatory fines, and business disruption. Addressing these issues with precise, compliant language is not just best practice—it’s a financial imperative.

How confident are you that your contracts would withstand regulatory scrutiny?
What would a single loophole cost your business in litigation or fines?
Are your terms keeping pace with evolving global regulations?

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.