The Points Guy Terms & Conditions: 4 Legal Risks That Could Cost Millions | Erayaha

## When We Examined The Points Guy’s Legal Framework: 4 Risks That Could Cost Millions

Imagine a scenario where a single ambiguous clause in your terms of service leads to a $2 million GDPR fine, or a broad waiver exposes your company to class action litigation. Our analysis of The Points Guy’s Terms & Conditions reveals four critical legal and logical risks that could result in substantial financial exposure and regulatory scrutiny.

1. Overbroad Release of Liability for Third-Party Service Providers The Points Guy’s T&C includes a sweeping release of liability for all third-party Service Providers. This clause attempts to waive all claims, including those for personal injury and property damage, which courts often find unconscionable or unenforceable—especially in consumer contracts. If challenged, this could expose the company to multi-million dollar class action lawsuits, particularly under state consumer protection laws.

Legal Analysis

critical Risk

Removed

Added

You hereby release and forever discharge us (and our officers, employees, agents, successors, and assigns) from, and hereby waive and relinquish, each and every past, present and future dispute, claim, controversy, demand, right, obligation, liability, action and cause of action of every kind and nature (including personal injuries, deathto the fullest extent permitted by law, and property damage)except for claims arising from gross negligence, that has arisen or arises directly or indirectly out ofwillful misconduct, or relates directly or indirectly to, any interactions with, or act or omissionviolations of, applicable law by us or Service Providers and their websites, links, offers, sites, products and services.

Legal Explanation

The original clause is overly broad and attempts to waive liability for all claims, including those that cannot legally be waived (e.g., gross negligence, willful misconduct, statutory violations). Courts routinely strike down such provisions as unconscionable, especially in consumer contracts. The revision narrows the waiver to the extent permitted by law, preserving enforceability and reducing exposure to class action litigation.

2. Unclear Data Sharing and Consent for Credit Reporting The T&C authorizes broad sharing of personal and credit information with third parties, but lacks explicit limitations and fails to specify the legal basis for such processing. This ambiguity creates significant GDPR and CCPA compliance risks, with potential fines of up to €20 million or 4% of global turnover under GDPR, and $7,500 per violation under CCPA.

Legal Analysis

high Risk

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Added

You agree and hereby authorize LinkOffers, its contracted data providers, agents, and employees, to provide your personally identifiable information (or, if applicable, information about your child you have enrolled) to third parties as providedsolely for the specific purposes outlined in this Agreement and our Privacy Policy, as may be amended from time to time. You waive anyin accordance with applicable privacy laws (including GDPR and all claims against LinkOffersCCPA), Inc., its contracted data providers, agents, employees, and shareholder for the acts or omissions of these third partiesonly with regard toyour explicit consent or other valid legal basis. You retain all rights under applicable privacy laws regarding the use or, disclosure, and correction of suchyour personal information.

Legal Explanation

The original clause lacks specificity regarding the purposes and legal basis for data sharing, creating compliance gaps with GDPR and CCPA. The revision adds explicit limitations, requires a valid legal basis, and references user rights, reducing regulatory risk and increasing transparency.

3. Lack of Explicit Opt-Out Mechanism for Arbitration While the T&C references a binding arbitration agreement and the right to opt out, it fails to specify the process, timeline, or contact details for opting out. This omission can render the arbitration clause unenforceable, exposing the company to costly litigation and regulatory penalties for unfair contract terms.

Legal Analysis

high Risk

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Added

THIS AGREEMENT CONTAINS A BINDING ARBITRATION AGREEMENT, WHICH PROVIDES THAT YOU AND WE AGREE TO RESOLVE CERTAIN DISPUTES THROUGH BINDING INDIVIDUAL ARBITRATION AND GIVE UP ANY RIGHT TO HAVE THOSE DISPUTES DECIDED BY A JUDGE OR A JURY. YOU HAVE THE RIGHT TO OPT OUT OF OUR AGREEMENT TO ARBITRATE. SEE THE LEGAL DISPUTES SECTION BY SENDING WRITTEN NOTICE TO [SPECIFIC ADDRESS OR EMAIL] WITHIN 30 DAYS OF THIS AGREEMENTACCEPTING THESE TERMS.

Legal Explanation

The original clause fails to specify the process, timeline, or contact details for opting out of arbitration, which can render the clause unenforceable under the Federal Arbitration Act and state consumer protection laws. The revision provides a clear, actionable opt-out mechanism, enhancing enforceability and reducing litigation risk.

4. Ambiguous Limitation of Liability for Account Security Breaches The T&C states that users are solely responsible for maintaining password security and disclaims all liability for unauthorized account use. However, such blanket disclaimers are often invalid under state and federal law, especially if the company’s own negligence contributed to a breach. This gap could result in direct damages, regulatory fines, and reputational harm.

Legal Analysis

high Risk

Removed

Added

You agree that we shall not be liable for any loss that you may suffer as a result ofresulting from the authorized or unauthorized use of your password by a third party, except where such loss arises from our negligence, willful misconduct, or failure to implement reasonable security measures as required by applicable law.

Legal Explanation

The original clause attempts to disclaim all liability for unauthorized account use, even if the company is at fault. Courts and regulators often invalidate such blanket disclaimers, especially if the company failed to implement reasonable security measures. The revision limits the disclaimer to the extent permitted by law and preserves liability for the company’s own negligence.

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Conclusion: Proactive Legal Protection Is Essential Our analysis demonstrates that even well-drafted T&Cs can harbor critical legal risks with multi-million dollar implications. Addressing these issues can strengthen enforceability, reduce regulatory exposure, and protect against costly litigation.

Are your terms and conditions exposing your business to preventable legal risk?
How often do you review your T&Cs for compliance with evolving regulations?
What would a single regulatory fine mean for your bottom line?

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.