InfoStreet Terms & Conditions: Critical Legal Risks and Financial Exposure Uncovered
Our expert review of InfoStreet's Terms & Conditions reveals key legal risks, including liability limitations, ambiguous data handling, and compliance gaps—plus actionable solutions.
When Legal Ambiguity Can Cost Millions: A Deep Dive into InfoStreet’s Terms & Conditions
When we examined InfoStreet’s Terms & Conditions, our analysis revealed several legal and logical gaps that could expose the company and its customers to significant financial and regulatory risks. In today’s regulatory landscape, a single ambiguous clause or compliance failure can result in fines exceeding $2 million under GDPR, or trigger costly litigation over data breaches and service interruptions. Below, we break down the four most critical issues found in InfoStreet’s agreement, quantify their business impact, and provide actionable improvements.
1. Ambiguous Data Deletion and Retention Policy
The T&C states that all customer data will be deleted after a trial or free period ends, unless the account is converted. However, it fails to specify timelines, data backup protocols, or compliance with data protection regulations such as GDPR or CCPA. This ambiguity can result in non-compliance fines of up to €20 million or 4% of annual global turnover, as well as reputational damage from mishandled data.
Legal Explanation
The original clause is vague on timing and compliance, exposing InfoStreet to regulatory penalties and customer claims. The revision introduces a clear timeline, legal compliance, and customer rights, reducing risk and enhancing enforceability.
2. Overbroad Warranty Disclaimer and Lack of Minimum Service Commitments
InfoStreet’s blanket disclaimer of all warranties, including fitness for purpose and uninterrupted service, exposes customers to unmitigated risk. Without any minimum service levels or uptime guarantees, customers could face significant business losses from outages, with little recourse. This lack of balance can render the clause unenforceable in some jurisdictions and may lead to damages claims exceeding $500,000 for enterprise clients.
Legal Explanation
Total warranty disclaimers are often unenforceable and fail to provide minimum service assurances. The revision balances risk, aligns with industry standards, and reduces the likelihood of successful customer claims for outages or data breaches.
3. Unilateral Suspension for Alleged Legal Violations Without Due Process
The agreement allows InfoStreet to immediately suspend services and remove customer information if it "in good faith believes" a violation of law has occurred, without any requirement for notice, investigation, or opportunity to cure. This exposes customers to sudden business disruption and potential loss of critical data, risking claims for consequential damages and regulatory scrutiny for unfair contract terms.
Legal Explanation
The original clause allows for arbitrary suspension without due process, risking business disruption and legal challenges. The revision introduces notice and cure rights, aligning with fair contract principles and reducing exposure to damages claims.
4. Incomplete Indemnity Clause Shifting All Third-Party Risk to Customer
The indemnity provision requires customers to defend and pay for all third-party claims arising from their use of SkyOne, including IP infringement, but does not require InfoStreet to indemnify customers for its own acts or omissions. This one-sided risk allocation can be challenged in court and may result in InfoStreet bearing substantial litigation costs or settlements—often exceeding $250,000 per major dispute.
Legal Explanation
The original clause is one-sided, shifting all risk to the customer. The revision creates mutual indemnity, which is more likely to be enforced and reduces InfoStreet’s exposure to costly disputes.
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Conclusion: Proactive Legal Risk Management is Essential
Our analysis demonstrates that even well-drafted agreements can contain critical vulnerabilities with severe financial and regulatory consequences. Addressing these issues not only strengthens enforceability but also builds trust with customers and regulators.
- How robust are your current contract risk controls?
- What would a major data breach or service outage cost your business?
- Are your indemnity clauses truly balanced and enforceable?
**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. For more on liability limitations, see erayaha.ai’s terms of service.**