Spaceship Terms & Conditions: 4 Critical Legal Risks and How to Fix Them | Erayaha

When Legal Loopholes Cost Millions: Spaceship’s T&C Under the Microscope

Imagine a scenario where a single ambiguous clause in your app’s terms leads to a $2 million GDPR fine or a class action lawsuit over unfair account termination. Our analysis of Spaceship’s Terms & Conditions reveals four critical legal and logical risks that could expose the company to substantial financial and regulatory consequences. Here’s what every fintech and SaaS leader should know about these hidden dangers—and how to fix them.

1. Privacy Consent and International Data Transfers: A GDPR/CCPA Minefield Spaceship’s privacy clause allows broad collection and overseas disclosure of personal data, referencing only its own Privacy Policy. This exposes the company to GDPR fines up to €20 million or 4% of annual turnover if users’ data is transferred to the US without explicit consent or proper safeguards. The clause also lacks specificity on user rights and legal bases for processing.

Legal Analysis

high Risk

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By using the Spaceship App, you consent and agree to the collection and use of your personal information being collected and used by us and other parties as explainedsolely for the purposes specified in our Privacy Policy and Privacy Collection Notice (Privacy Policy). If we don't collect this informationagreement, we may not be able to providein compliance with applicable privacy laws including the products or services you request. You agree that we may collectGDPR and use technicalCCPA. Explicit consent will be obtained for any transfer of personal data and related informationoutside Australia, including but not limited to technical information about your smartphone and other hardware devicesappropriate safeguards will be implemented. Users retain the right to access, and your systems and other application softwarecorrect, to facilitate the provisionor request deletion of software and other updates to the Spaceship Apptheir personal information as required by law. We do not sell your information to anyone. We may disclose your personal informationAny disclosure to our service providers located in Australia and the US, but only so those service providers can assist us with functions relatingwill be limited to managing yourthose necessary for account management and subject to contractual data protection obligations.

Legal Explanation

The original clause is overly broad and does not specify legal bases for processing, user rights, or safeguards for international data transfers. The revision clarifies compliance with privacy laws, specifies user rights, and addresses cross-border data transfer requirements, reducing regulatory risk.

2. Unilateral Termination Without Cause or Notice: Litigation and Consumer Law Risk The T&C grants Spaceship the right to suspend or terminate user access at any time, without notice or reason. This creates a significant risk of claims under Australian Consumer Law (ACL) for unfair contract terms, potentially resulting in regulatory action and class action litigation costs exceeding $1 million.

Legal Analysis

critical Risk

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Your permission to access, viewWe may suspend or useterminate your access to the Spaceship App may be suspended or terminated at any time by us without notice. All disclaimers and limitationsonly for material breach of liability included in these Terms and Conditions, fraud, or unlawful activity, and will surviveprovide you with reasonable notice and an opportunity to respond, except where immediate termination is required by law or to protect security.

Legal Explanation

The original clause allows termination without cause or notice, which is likely unfair under the Australian Consumer Law and exposes the company to litigation. The revision introduces cause, notice, and procedural fairness, aligning with consumer protection standards.

3. Overbroad Limitation of Liability: Unenforceable and Exposing to Damages Spaceship attempts to exclude nearly all liability, including for negligence and unauthorized access. Such sweeping exclusions are likely unenforceable under the ACL and could result in damages awards or regulatory penalties. The clause also fails to clarify liability for third-party service failures, a key fintech risk.

Legal Analysis

high Risk

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To the extent permittedExcept as required by law, neither we, nor any of our employees, agents or officers, accept or are not liable for any direct, indirect or incidental loss, loss of profits, liability or claimdamage arising from, or any costs, charges or expenses incurred as a result of: any reliance upon the information contained in the Spaceship App; your use of the Spaceship App; any theft or unauthorised access to the Spaceship App; any omissions, defectsexcept where such loss is caused by our gross negligence, errorswillful misconduct, or viruses contained in the Spaceship App; or any revision, suspension or discontinuancebreach of the Spaceship App or websites which are linkedstatutory duty. We remain responsible for losses resulting from unauthorized access due to our failure to implement reasonable security measures. Liability for third-party service failures will be limited to the Spaceship App, whether in contract, tort (including negligence),extent permitted by statute or otherwiseapplicable law.

Legal Explanation

The original clause attempts to exclude all liability, including for negligence and unauthorized access, which is likely unenforceable and exposes the company to damages. The revision clarifies enforceable limitations and preserves liability for gross negligence and statutory breaches.

4. Ambiguous Amendment Process: Insufficient Notice and Consent The T&C allows Spaceship to amend terms at any time by publishing a new version online, with continued use deemed acceptance. This is likely insufficient under consumer protection laws, which require clear notice and, in some cases, explicit consent for material changes—especially those affecting user rights or fees. Failure to comply could trigger regulatory scrutiny and reputational harm.

Legal Analysis

medium Risk

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We may amend these Terms and Conditions by providing you with at least 30 days’ prior written notice of any timematerial changes, including by email or in which case an amended version will be published on our website-app notification. Your acceptanceContinued use of these Terms and Conditions demonstrates that you agree that in publishing the amended version, we have provided sufficientSpaceship App after the notice period constitutes acceptance of the changesamended terms. You also agree thatMaterial changes affecting your subsequent access, viewingrights or use of the Spaceship App demonstratesobligations will require your acceptance of these Terms and Conditionsexplicit consent where required by law.

Legal Explanation

The original clause allows unilateral amendments with only online publication and deemed acceptance, which is insufficient under consumer protection laws. The revision introduces clear notice periods and explicit consent for material changes, improving enforceability and compliance.

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Key Takeaways: Protecting Your Business from Preventable Legal Risks

Regulatory fines up to €20 million (GDPR) or $10 million (ACL)
Class action litigation and reputational damage
Loss of user trust and business disruption

**Proactive contract review and redlining are essential to mitigate these risks.**

**Are your terms exposing you to hidden liabilities? How would your business fare under a regulatory audit? What would a $2 million fine mean for your growth plans?**

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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.*