SAN DIEGO (KGTV) — Over the last couple of weeks, you've probably gotten messages on your phone about updated service agreements from your bank, different apps, and even services you use.
Any time a company makes changes to how they operate, they are legally required to let customers know about new procedures. As things are evolving with the arrival of AI, more and more companies are changing how they use and share the data they collect.
Big tech companies like Microsoft updated their service agreements in 2024 to include that personal data would be used to develop and train their AI models. Meta has also updated its terms, informing users that content shared on its products will be used to train its AI models.
Many states, including California, have implemented laws to protect consumers from automatic changes. California's AB 2863, which was amended last year, requires that if a consumer signs up for a plan or service that automatically renews, the business must give the consumer notice of the automatic renewal at least 15 days before it is set to renew. The annual reminder must also list the product or service, the amount of charges, the frequency, and how a consumer can cancel.
That's why experts say it's important to read service agreements carefully. Craig Barkacs, a lawyer and professor of business law at the University of San Diego, says skipping past the notice and just hitting agree can cause problems if there's a dispute.
"If it turns out that you have some kind of conflict, you go back to those terms and conditions, you're likely to find that the protections were very one-sided in favor of the company and not so much for the consumer," Barkacs said.
Here are other things to look out for: Check for the effective date — when are these changes scheduled to start? Pay attention to any arbitration or class action waivers, as these could limit any legal options you may have. Lastly, if there aren't any opt-out options and you aren't comfortable agreeing to the terms, get legal advice or think about deleting your account.
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