Legal Risks in STONE AND STRAND's Terms & Conditions: Key Contractual Pitfalls Exposed | Erayaha

## When Legal Ambiguity Meets E-Commerce: STONE AND STRAND’s Hidden Risks

Imagine a scenario where a single clause exposes an e-commerce business to $250,000+ in regulatory fines or a class action lawsuit. Our analysis of STONE AND STRAND’s Terms & Conditions uncovers several high-impact legal and logical issues that could result in significant financial and reputational damage. Here’s what every business leader and legal counsel should know.

1. Overbroad Data Usage and Disclosure Rights

The T&C grants STONE AND STRAND sweeping rights to use, copy, and disclose account data, with vague references to legal compliance. This ambiguity creates a major compliance gap with privacy laws like GDPR and CCPA, which require specificity and user consent. Regulatory fines for violations can reach €20 million or 4% of annual revenue under GDPR.

Legal Analysis

high Risk

Removed

Added

Notwithstanding anything to the contrary, you hereby authorize STONE AND STRAND and its affiliates, contractors, and suppliers to use, copy, and disclose Account Data (i)solely as part of providingnecessary to provide the Website, (ii) if required by and in accordance with applicable lawprivacy laws, (iii) where necessary to enforce these Termsincluding GDPR and Conditions and/or to protect any of STONE AND STRAND’s or other parties’ legal rights, (iv) in an aggregated form which does not includeCCPA. Any disclosure beyond these purposes requires your identifying informationexplicit, and (v) as permittedinformed consent, except where required by STONE AND STRAND’s Privacy Noticelaw.

Legal Explanation

The original clause is overly broad and does not restrict data use to specific, lawful purposes as required by privacy regulations. The revision narrows permissible uses, requires explicit consent for additional disclosures, and aligns with GDPR/CCPA requirements.

2. Unenforceable Limitation of Liability

The limitation of liability clause attempts to cap damages at $100 or the amount paid, regardless of actual harm or statutory rights. Such a blanket limitation is likely unenforceable under state consumer protection laws and could expose STONE AND STRAND to uncapped damages in litigation—potentially exceeding $500,000 per incident.

Legal Analysis

critical Risk

Removed

Added

If the foregoing limitations are held inapplicable or unenforceable for any reason, then the maximum liability of STONE AND STRAND to you for any type of damages shall be limited to the greater of the actual amount paid by you for any services offered on the website or U.S. $100.00, except where such limitation is prohibited by applicable law, including but not limited to consumer protection statutes, which may provide for greater liability.

Legal Explanation

The original clause attempts to limit liability in all cases, which is not enforceable under many state and federal consumer protection laws. The revision clarifies that statutory rights are preserved, reducing the risk of the entire clause being struck down.

3. One-Sided Arbitration and Class Action Waiver

The dispute resolution section mandates binding arbitration in New York and prohibits class actions. However, the clause lacks mutuality and fails to address consumer rights under the Federal Arbitration Act and state laws, risking judicial invalidation and expensive court proceedings.

Legal Analysis

high Risk

Removed

Added

Any dispute relating in any way to your visit or access of the Website or to the products you purchase through the Website shall be submitted to binding arbitration in New York City, New York state. Arbitration, under these Terms & Conditions shall be conducted under the rules then prevailing of the American Arbitration Association. The arbitrator's award shall be binding and may be entered as a judgment in any court of competent jurisdiction. ToNotwithstanding the fullest extent permitted by applicable lawforegoing, nothis arbitration under these Conditions of Use shall be joined to an arbitration involvingprovision does not waive any other party subjectrights or remedies provided to these Conditions of Useconsumers under applicable federal or state law, whether throughincluding the right to participate in a class arbitration proceedings or otherwiseaction where such waiver is prohibited.

Legal Explanation

The original clause lacks mutuality and fails to account for statutory consumer rights regarding class actions and arbitration. The revision ensures compliance with the Federal Arbitration Act and state laws, reducing the risk of judicial invalidation.

4. Unilateral Modification of Terms Without Notice

The T&C allows STONE AND STRAND to change terms at any time, with immediate effect, and places the burden on users to monitor updates. This practice is widely viewed as unconscionable and unenforceable, especially in consumer contracts, and can invalidate the agreement in whole or in part.

Legal Analysis

medium Risk

Removed

Added

STONE AND STRAND reserves the right to change or modify any of the terms contained in these termsTerms & conditionsConditions, at any time. Any such modifications or changes will immediately become effective upon postingprovided that users are given reasonable advance notice of suchmaterial changes. Your continued access via email or prominent notice on the Website. Continued use of thisthe Website will imply your fullafter such notice constitutes acceptance of the same. You are therefore responsible for regularly reviewing these Terms & Conditions and additionalrevised terms or notices posted on the Website.

Legal Explanation

Unilateral modification without notice is considered unconscionable and unenforceable in many jurisdictions. The revision introduces a notice requirement, improving fairness and enforceability.

Conclusion: Proactive Legal Safeguards Are Essential

Our examination shows that even well-intentioned terms can create costly legal exposure. Addressing these issues can prevent regulatory fines, litigation, and reputational harm. Proactive contract review is not just best practice—it’s a business imperative.

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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.