NeurAxis Terms & Conditions: Critical Legal Risks and Financial Exposure Uncovered | Erayaha

## When We Examined NeurAxis’s Legal Framework: Four Hidden Risks with Major Financial Stakes

Imagine a scenario where a single ambiguous clause in your Terms & Conditions could trigger a $2 million GDPR fine, or where a lack of clear termination rights exposes your business to months of unwanted liability. Our analysis of NeurAxis’s Terms & Conditions reveals four critical legal and logical errors that could result in substantial regulatory penalties, litigation costs, and reputational harm if left unaddressed.

1. Vague Data Retention and Use After Account Cancellation NeurAxis’s T&C currently allow indefinite retention and use of user data after account cancellation, without specifying purpose or legal basis. This exposes the company to severe GDPR and CCPA violations, where fines can reach €20 million or 4% of global annual turnover.

Legal Analysis

critical Risk

Removed

Added

Upon cancellation of your NEURAXIS Account, NEURAXIS may: (1)will retain and use your information only as necessary to comply with legal obligations, resolve disputes, and content indefinitely;enforce agreements, and for no longer than is permitted by applicable law (2including GDPR and CCPA) continue to. All continued use your information for research purposes indefinitely;will be anonymized and (3) retain, use, and continuesubject to show information about your use of the Servicesuser consent.

Legal Explanation

The original clause allows indefinite retention and use of personal data without limitation or legal basis, violating GDPR and CCPA requirements for data minimization and purpose limitation. The revision introduces clear legal boundaries, aligns with regulatory standards, and reduces exposure to regulatory fines.

2. Unilateral Termination Without Notice or Cause The T&C grant NeurAxis the right to revoke user access or terminate accounts at any time, with or without cause or notice. This lack of procedural fairness is likely unenforceable in many jurisdictions and could result in wrongful termination claims, with potential damages exceeding $100,000 per incident.

Legal Analysis

high Risk

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NEURAXIS maintains the right tomay suspend or disableterminate your access to the Services and any NEURAXIS Account you may have created, or terminateyour account upon material breach of these Terms, at its sole discretion and without priorprovided that reasonable notice to you if you breach the Terms, or if NEURAXIS otherwise determines such action is warranted. NEURAXIS reserves the right to revoke your access togiven and use ofan opportunity to cure the Services at any timebreach is offered, withexcept where immediate termination is required by law or without causeto prevent harm.

Legal Explanation

Unilateral termination without notice or cause is likely unenforceable and exposes the company to wrongful termination claims. The revision introduces procedural fairness, notice, and cure periods, which are enforceable and reduce litigation risk.

3. Overbroad License to User Content The current license granted to NeurAxis for user content is perpetual, irrevocable, and for any purpose, including commercial use, without limitation or opt-out. Such breadth risks violating user IP rights and consumer protection laws, potentially leading to class action lawsuits and damages in the millions.

Legal Analysis

high Risk

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By making available User Content through the Services, you hereby grant to NEURAXIS and its respective subsidiaries, affiliates, successors, assigns, licensees, resellers, sub-licensees, and other such parties as NEURAXIS may designate from time to time, which may include any or all other users of the Services, an irrevocable,a worldwide, perpetual, non-exclusive, transferable, sublicensable, royalty-free license, to use, reproduce, access, view, copy, adapt, import, edit, modify, reformat, translate, post, distribute, license, sell, offer to sell, transfer, commercialize, publicly display, publicly perform, transmit, stream, broadcast, create derivative works from, and otherwise utilizedistribute such User Content, in whole or in part, solely for any purpose whatsoever, in any and all media and distribution methods (now known or later developed), including, without limitation, on or within the Services, or for advertising or marketingoperation and promotion of the Services, as well as a licensesubject to use your name and likeness in marketing materials and in the Servicesright to promote yourwithdraw consent for future commercial use of the Servicesat any time, except where otherwise required by law.

Legal Explanation

The original clause is overly broad, perpetual, and irrevocable, risking user IP rights and violating consumer protection laws. The revision limits the license scope, introduces user opt-out, and aligns with fair use principles.

4. Absence of Limitation of Liability Cap NeurAxis’s T&C do not include a limitation of liability clause. Without this, the company faces unlimited exposure to damages from user claims, which could reach into the millions for data breaches or service failures. Industry best practice is to cap liability at the greater of fees paid or a set dollar amount (e.g., $50,000).

Legal Analysis

critical Risk

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These Terms doTo the maximum extent permitted by law, NEURAXIS’s total liability to any user for all claims arising out of or relating to the use of the Services shall not contain a limitationexceed the greater of liability clause(a) the total fees paid by the user to NEURAXIS in the twelve months preceding the claim, or (b) $50,000.

Legal Explanation

Absence of a liability cap exposes the company to unlimited damages from user claims, which is a significant financial risk. The revision introduces an industry-standard cap, providing predictability and risk mitigation.

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Conclusion: Proactive Legal Safeguards Are Essential Our review demonstrates that NeurAxis’s current Terms & Conditions contain critical gaps that could result in regulatory fines, costly litigation, and reputational damage. Proactively addressing these issues will not only strengthen legal enforceability but also protect against preventable financial loss.

Are your contracts exposing your business to unlimited liability?
Have you reviewed your data retention policies for compliance with GDPR and CCPA?
What would a single wrongful termination claim cost your organization?

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.