Legal Risks in Reformed Church in America’s Terms & Conditions: Key Gaps & Financial Exposure | Erayaha

## Uncovering Legal and Financial Exposure in Reformed Church in America’s Terms & Conditions

When we examined Reformed Church in America’s (RCA) Terms & Conditions, our analysis revealed several critical legal and logical gaps that could expose the organization to regulatory fines, costly litigation, and reputational harm. For example, ambiguous limitations on liability and insufficient compliance with privacy standards can result in penalties exceeding $100,000 under U.S. and EU law. Below, we highlight four key issues and provide actionable improvements to strengthen enforceability and reduce risk.

1. Overbroad Limitation of Liability: Regulatory and Litigation Risk

The current limitation of liability clause attempts to cap all damages at $50, regardless of the nature or cause of loss. This blanket limitation is likely unenforceable in many jurisdictions, especially where consumer protection laws prohibit such restrictions for gross negligence, fraud, or statutory violations. The financial exposure from an unenforceable clause could lead to damages and class action liabilities in excess of $250,000, based on industry averages for similar disputes.

Legal Analysis

critical Risk

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To the maximum extent permitted by law, notwithstanding anything to the contrary contained herein, our liability to you for any damages arising from or related to this agreement, will at all times shall be limited to direct damages actually incurred, up to a maximum of fifty U.S. dollars (uU.sS. $50). The existence, except in cases of more than one claim will not enlarge this limitgross negligence, willful misconduct, fraud, or violations of statutory rights, for which no such limitation shall apply.

Legal Explanation

The original clause is overly broad and likely unenforceable where consumer protection laws prohibit limiting liability for gross negligence, fraud, or statutory violations. The revision carves out these exceptions, aligning with legal standards and reducing the risk of invalidation.

2. Ambiguous Arbitration Clause: Uncertain Dispute Resolution and Cost Exposure

The arbitration clause is broad but lacks specificity regarding the governing rules, location, and process for initiating arbitration. This ambiguity can result in procedural challenges, increased legal costs, and unenforceability in certain states. Without clear arbitration procedures, RCA could face protracted litigation, with average legal fees for unresolved arbitration disputes exceeding $75,000.

Legal Analysis

high Risk

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Arbitration shall be initiated through the American Arbitration Association (AAA) in accordance with its Consumer Arbitration Rules, an established alternative dispute resolution provider that offers arbitration as set forthwith hearings held in this sectionthe state of Michigan unless otherwise agreed. If AAA is not available to arbitrateunavailable, the parties shall agree towill mutually select an alternative ADR Provider. Theprovider whose rules of the ADR Provider shallwill govern all aspects of the arbitration except to the extent such rules are in, provided they do not conflict with theapplicable law or these Terms. The process for initiating arbitration, including notice, filing, and selection of arbitrator, shall be clearly set forth in a separate arbitration policy incorporated herein by reference.

Legal Explanation

The original clause lacks specificity regarding governing rules, location, and initiation process, which can lead to procedural disputes and unenforceability. The revision clarifies these elements, reducing legal uncertainty and cost exposure.

3. Insufficient Privacy and Data Use Protections: Regulatory Compliance Gaps

The privacy disclosures are limited to a brief SMS and phone policy and a general statement about cookies. There is no comprehensive privacy policy or explicit reference to compliance with major regulations such as GDPR or CCPA. This omission exposes RCA to potential regulatory fines (up to $2,500 per violation under CCPA, or €20 million under GDPR) and damages from data breaches or misuse.

Legal Analysis

high Risk

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We do not sharecollect, use, and protect personal data (phone numbers)in accordance with applicable privacy laws, including GDPR and consentCCPA. Personal data will not be shared with third parties, affiliates, or partners without explicit user consent, except as required by law. For more information, please refer to our comprehensive Privacy Policy.

Legal Explanation

The original clause is limited in scope and does not address broader privacy obligations or regulatory compliance. The revision expands protections, references key regulations, and directs users to a full privacy policy, reducing compliance risk.

4. Unilateral Amendment of Terms Without User Consent: Enforceability and Consumer Protection Issues

The Terms allow RCA to change, suspend, or cease the site and amend the Terms with minimal notice, relying on continued use as acceptance. This approach may not satisfy legal requirements for affirmative consent, particularly under EU consumer protection law, and could lead to contract challenges and restitution claims averaging $50,000 in similar cases.

Legal Analysis

high Risk

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These Terms are subjectmay be amended from time to occasional revisiontime. For existing users, and if we make any substantialmaterial changes will require affirmative consent, we may notify youeither by sending you an e-mail to the last e-mail address you provided to us and/electronic acceptance or by prominently posting notice of the changes on our Sitewritten agreement, prior to becoming effective. You are responsible for providing us with your most current e-mail address. In the event that the last e-mail address that you have provided us is not valid our dispatchNotice of the e-mail containing such notice will nonetheless constitute effective notice of the changes described in the notice. Any changes to these Terms will be effective upon the earliest ofprovided at least thirty (30) calendar days following our dispatch of an e-mail notice to you or thirty (30) calendar days following ourin advance via email and prominent posting of notice of the changes on ourthe Site. These changes will be effective immediately for new users of our Site. Continued use without affirmative consent will not constitute acceptance of our Site following notice of suchmaterial changes shall indicate your acknowledgement of such changes and agreement to be bound by the terms and conditions of such changes.

Legal Explanation

The original clause relies on implied acceptance through continued use, which may not satisfy legal requirements for affirmative consent under EU and certain U.S. consumer protection laws. The revision mandates explicit user consent for material changes, enhancing enforceability and reducing restitution risk.

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Conclusion: Proactive Legal Protection is Essential

Our analysis demonstrates that addressing these legal gaps is crucial to minimize RCA’s financial and regulatory exposure. Implementing precise, compliant language and robust user protections can prevent costly disputes and regulatory actions.

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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.