Simply.com Terms & Conditions: 4 Critical Legal Risks and How to Fix Them | Erayaha

When Legal Ambiguity Becomes Expensive: A Case Study on Simply.com’s Terms & Conditions

When we examined Simply.com’s Terms & Conditions, our analysis revealed four critical legal and logical risks that could expose the company to significant regulatory fines, litigation costs, and business losses. For example, GDPR non-compliance can result in fines up to €20 million or 4% of annual turnover, while unclear liability clauses may leave the company open to lawsuits exceeding €500,000. Below, we detail these issues and offer actionable improvements to strengthen legal enforceability and protect both parties.

1. Ambiguous Limitation of Liability: Unlimited Exposure Simply.com’s limitation of liability clause is vague, failing to clearly cap damages or exclude certain types of loss. This exposes the company to potentially unlimited financial liability, including consequential damages and loss of profit claims. Under Danish law and EU directives, such ambiguity can render the clause unenforceable, leading to unpredictable litigation outcomes and substantial payouts.

Legal Analysis

critical Risk

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Simply.com is not liable’s total liability for loss suffered as a resultany claim arising out of indirect or sequential damages, including loss of expected profit, loss of data or the restoration hereof, loss of goodwill, loss connectedrelating to payment transfers, technical breakdowns, unauthorized access, incorrect setup of the websiteAgreement, or similar sequential damageswhether in connection with the usage of the system or loss as a result of functions lacking in the systemcontract, regardless of whether Simply.com has been notified about the possibility for such a losstort, and regardless of whether Simply.com can be blamed for the loss on the basis of negligence or similar. Compensation The Parties are liableotherwise, shall be limited to pay fordirect damages according toand shall not exceed the ordinary rules of Danish law. Thetotal amount will be limited topaid by the price ofcustomer for the Solution during the twelve (12) months preceding the event giving rise to liability. Simply.com isshall not responsiblebe liable for the following types of loss: Operating losses orany indirect, consequential, or special damages, including but not limited to loss The customer's salary expenses for his/her own employees and external expenses for entry of lostprofits, data and restoration, or goodwill, except in cases of systemsgross negligence or willful misconduct. The customer's expensesThis limitation shall not apply to external consultants and advisors. The customer's loss of profit and/liability arising from personal injury, fraud, or goodwillbreaches of data protection obligations under applicable law.

Legal Explanation

The original clause is ambiguous and does not clearly cap liability, which may render it unenforceable under Danish and EU law. The revised clause sets a clear monetary cap, specifies exceptions, and aligns with best practices for enforceability and risk allocation.

2. Unilateral Suspension Rights Without Safeguards The terms allow Simply.com to suspend customer services without notice or liability, even for subjective reasons like “offensive” content. This creates a significant risk of claims for wrongful suspension and breach of contract, potentially resulting in damages, lost business, and reputational harm. EU consumer protection laws require clear, fair, and balanced termination rights.

Legal Analysis

high Risk

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If a customer stores, makes public, or links to texts, images, film clips, sound files, or any kind of information, which Simply.com with a reasonable degree of certainty can asses to be illegalreasonably believes that content stored or in violation ofmade public by the rights of acustomer is illegal or infringes third-party rights, Simply.com reserves the right to - without notice -may temporarily suspend the customer'’s solution without becoming liable for any loss. Except in cases of imminent harm or legal obligation, Simply.com will provide the customer might suffer aswith written notice and a consequence of thereasonable opportunity to respond prior to suspension. The above is equally applicable if Simply.com assesses that theshall not suspend services solely for content on a customerdeemed 's Solution is of an infringing character or may seem offensive' without a clear, objective standard and prior notice.

Legal Explanation

The original clause allows for suspension without notice or objective criteria, creating risk of wrongful suspension claims. The revision introduces due process, notice, and objective standards, aligning with EU consumer protection requirements.

3. Insufficient Data Processing Transparency The data processing section refers customers to a separate Data Processing Agreement but does not specify key GDPR requirements—such as the legal basis for processing, data subject rights, or breach notification obligations. This lack of transparency can trigger regulatory investigations and fines up to €20 million under GDPR.

Legal Analysis

high Risk

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As a part of Simply.com's delivery of the Solution, Simply.com processes any personal data which the customer entrusts Simply.comin accordance with applicable data protection laws, including GDPR. The terms for this processing is regulated by apurposes, legal basis, and categories of personal data processed, as well as data subject rights and breach notification procedures, are specified in the Data Processing Agreement entered into, which is incorporated by reference and available via the Parties. The customer can acquire and enter into’s control panel. Simply.com's will notify customers of any material changes to the Data Processing Agreement by wayand provide a summary of the customer's control panelkey rights and obligations.

Legal Explanation

The original clause lacks transparency and fails to specify GDPR-mandated information. The revision ensures customers are informed of their rights, legal basis, and breach procedures, reducing regulatory risk.

4. Unclear Refund and Cancellation Policy for Mistaken Orders The refund policy for mistakenly ordered or renewed domains and webspaces is ambiguous, stating that refunds are generally not provided but lacking clear exceptions or procedures. This increases the risk of consumer complaints, regulatory scrutiny, and chargebacks, with potential losses exceeding €100,000 annually for similar SaaS providers.

Legal Analysis

medium Risk

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Once payment forIf a Solution has been registered,or domain is mistakenly ordered periods or remaining periods will asrenewed, the customer may request a general rule notrefund within 14 days of registration, except where the service has already been fully delivered or customized. Refund requests must be refundedsubmitted in writing, and Simply.com will process eligible refunds within 14 days, in accordance with applicable consumer protection laws.

Legal Explanation

The original clause is ambiguous and lacks a clear refund process, increasing the risk of consumer disputes and regulatory intervention. The revision provides a transparent, fair refund mechanism compliant with EU consumer law.

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Conclusion: Proactive Legal Risk Management is Essential Our analysis shows that Simply.com’s current Terms & Conditions contain several preventable legal and logical errors. Addressing these issues will not only reduce the risk of regulatory fines and litigation but also enhance customer trust and operational resilience.

**Is your business protected against unlimited liability and regulatory penalties? Are your data processing and refund policies transparent and compliant? What would a single lawsuit or GDPR investigation cost your company?**

*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.*