Terms of Service: What Users Should Know About Privacy and Control in Popular Digital Ecosystems

In today’s interconnected world of technology, Terms of Service (ToS) and Privacy Policies (PP) define the terms under which we, as users, engage with digital platforms. Yet, these agreements are often lengthy, complex, and favor the companies that draft them — limiting users’ legal options and granting broad control over personal data.

Despite growing concerns about the increasingly imbalanced nature of these agreements, many users accept these terms without fully understanding how their rights and privacy are compromised.

To address this, we at Website Planet (WSP) examined the ToS and PP of major players in the digital landscape to empower readers with the knowledge they need to make informed choices and advocate for stronger user protections.

In this research, we specifically analyze the key elements of ToS and PP agreements that directly impact user control and privacy.
Research Context and Its Importance
Millions of users commit to Terms of Service agreements daily; users need to understand the growing impact Terms of Service agreements have on user rights, privacy, and creative output.

By scrutinizing key terms and conditions — such as data protection, ethical data use, payment terms, service providers’ obligations, and legal safeguards — users can gain valuable insights into safeguarding their rights and privacy.

Furthermore, understanding these aspects enables us to make better-informed decisions to protect our personal information and creations.

Research Context and Its Importance

Millions of users commit to Terms of Service agreements daily; users need to understand the growing impact Terms of Service agreements have on user rights, privacy, and creative output.

By scrutinizing key terms and conditions — such as data protection, ethical data use, payment terms, service providers’ obligations, and legal safeguards — users can gain valuable insights into safeguarding their rights and privacy.

Furthermore, understanding these aspects enables us to make better-informed decisions to protect our personal information and creations.

Industry-Wide Privacy Ranking of Companies: Standouts and Areas of Concern

In our analysis of 57 companies across key industries, we focused on ranking them in the three most important categories: Privacy and Data Protection, Protection of Children’s Data, and Secure Payment Information System. These categories were chosen due to growing concerns about cybercrime and the need for data privacy safeguards.

Our findings revealed that Apple was the only company to achieve a positive rating across all three categories, while companies like Facebook, Netflix, 23andMe, and Tesla failed in all categories, revealing a need to improve user protection measures. Companies like John Deere, HP, Upwork, and Spotify performed moderately, without standing out positively or negatively.

Although over 85% of industries fail to reach even half of the maximum possible score, Social Media poses the greatest risks due to the large volume of personal and intimate data shared, highlighting significant room for improvements in user data protection.
What Popular Companies Collect: Understanding Your Data in the Digital Age

When selecting industries for our study, we focused on those that are currently the most influential and rapidly evolving in the digital landscape, where the impact of ToS and Privacy Policies on user rights is especially significant.

Table 1: Leading Companies Selected Across Key Sectors for This Study

[Note: For research purposes, we have treated affiliates or subsidiaries of Google (Alphabet Inc.), Meta, and Amazon as separate entities.]

By choosing leading companies in these key sectors, we aimed to show how much data these platforms collect and how this can negatively affect the balance of power between the platforms and their users, especially in terms of privacy and control.

For our research, we categorized the different types of data collected by these industries in order to highlight the vast amount of information users share, often unknowingly. To present our findings clearly, we marked a data type as “Yes” if most companies in each industry collect it.

Analysis of Key ToS Elements Affecting User Control and Privacy

Terms of Service (ToS) and Privacy Policy (PP) agreements define the rights, obligations, and protections for both users and companies, often involving sensitive data, financial transactions, and essential services.

However, these legal documents are typically complex and favor companies. After thoroughly reviewing the ToS and PP documents of the companies in question, our team focused on certain key elements that impact users’ rights and privacy, including:

• Privacy and Data Protection 
• Content Ownership Rights 
• Secure Payment Information System 
• Limitation of Liability 
• Protection of Children’s Data
• Dispute Resolution and Mandatory Arbitration

Furthermore, to help readers better understand their privacy and rights, our team categorized selected companies into three groups — Red, Yellow, and Green — distinguishing between those with transparent, user-friendly policies and those that may pose higher risks to privacy and control.

Privacy and Data Protection

We aimed to explore how companies handle personal data, especially in terms of sharing it with third-party providers. Our analysis also focused on data retention periods, the necessity of user consent for data usage and sharing, and the extent of control users have over their personal information.

After reviewing these elements in the Terms of Service and privacy documents, we categorized the companies into:

• Red: Companies with ambiguous retention periods or indefinite data retention; extensive data sharing without sufficient transparency or user control. Users may have little to no ability to limit this data sharing.
• Yellow: Companies with some clarity and transparency, but that lack specific retention periods; allow some level of user control but share data broadly.
• Green: Companies with clear, time-bound retention policies; minimal sharing with third parties and explicit user consent. They don’t share data with third-party marketers or other entities for purposes unrelated to service provision.

Among the 57 companies reviewed, 46 of them (80%) were classified as either Red or Yellow in terms of data retention policies, with only 11 companies receiving a Green flag.

In our review of data-sharing practices, Apple was the standout company for its commitment to limiting data sharing to necessary service providers and affiliates. Its privacy-focused approach and policy of not sharing user data for unrelated purposes, such as marketing, earned it the distinction of being the only Green-flagged company.

Given these trends, users need to scrutinize data retention and third-party sharing policies when assessing the privacy risks of a service. By understanding how a company handles user data, users can make more secure choices and better protect their personal information.

You can check the full company list here.

Content Ownership Rights

To understand ownership rights, our team examined how companies define ownership of the content users create and share on their platforms. We evaluated how these companies address the ethical use or sharing of this content, including their approach to AI ethics.

Our team used the following criteria to categorize the companies:

• Red: These companies assert ownership over users’ content, demanding broad and often irrevocable licenses that greatly limit users’ control over their creations.
• Yellow: Users keep ownership of their content but must provide the company with a limited license to use, modify, or distribute it. This is typically to support service operation or improvement.
• Green: These companies clearly state that users retain full ownership of their content without requiring users grant any significant licenses or rights to the company.

In this section, the number of companies in the Red and Yellow categories was nearly the same. The main distinction between these categories was the level of control each company offers users over their content and the clarity regarding how the content will be used.

No companies fell into the Green category, indicating that very few companies today grant users complete ownership of their content without imposing substantial licensing requirements.

AI ethics are addressed inconsistently, with some companies like Microsoft Azure, NVIDIA, and AWS incorporating AI guidelines. These guidelines emphasize responsible AI use, banning harmful practices, and enhancing services, but most companies that use AI fail to have a robust AI ethics framework.

Check the full list of companies here.

Secure Payment Information System

We assessed the security measures detailed by companies to protect users from fraud and unauthorized transactions, focusing on how they safeguard financial details during transactions and ensure that payment information is securely processed and stored.

We have categorized companies into three groups based on the robustness of their security measures and the transparency surrounding them:

• Red: These companies either don’t mention any specific security measures or provide only vague or minimal information about how they secure payment details.
• Yellow: These companies mention security practices but either rely heavily on third-party providers or lack detail in their security measures, making them less robust.
• Green: These companies have strong security measures in place, including encryption, compliance with industry standards (e.g., PCI DSS), and robust security protocols.

Our analysis found that approximately 61% of companies fall into the Red category (including Google, PayPal, Temu, and Tesla) because they don’t specify their security measures for payment information, raising concerns about their protection of financial transactions.

Some companies, such as Adobe and NVIDIA GeForce NOW, rely on third-party payment processors for transaction security, while others, like PayPal, Inc., shift the responsibility of securing payment methods to users, which can create vulnerabilities.

In contrast, companies like Apple, Amazon, and Payoneer — which explicitly adhere to PCI DSS and other industry standards — demonstrate a commitment to securing payment information.

This highlights a prominent trend: There is a clear divide between those that implement robust security measures and those that either neglect the issue or provide vague, insufficient details.

Full company list here.

Limitation of Liability

To understand users’ rights in the event of losses or damages, we reviewed how these companies’ Terms of Service (ToS) outline their accountability for such incidents. We checked whether disclaimers and warranties are clearly defined.

Additionally, we assessed the obligations these companies have to continue providing services under a variety of circumstances.

Based on our analysis into the balance of liability limitations and protections for users, companies have been classified into three categories:

• Red: Liability is heavily limited or waived entirely, with little to no protection for the user. They often disclaim any warranties or protections, making it difficult for users to seek compensation in case of issues.
• Yellow: The liability is limited but may favor the company more heavily, with some protections for users. These companies have liability caps but still provide some protections, especially against gross negligence or fraud.
• Green: The company provides clear and fair limitations on liability, protecting both the company and the user, with exceptions for gross negligence or willful misconduct. Users are more likely to be compensated if the company is clearly at fault.

While major players in sectors such as finance, consumer goods, social media, and large tech firms like Coinbase, Tesla, Revolut (UK), OpenAI, Google, TikTok, and IBM often provide minimal user protections, some companies, including Apple and Temu, offer more defined limitations. These typically come with disclaimers and exceptions for cases of gross negligence and fraud.

Across industries, companies seek to limit their liability, often capping their responsibility to either the amount the user has paid for the service or a capped dollar amount, such as $50 or $100.

Almost all companies provide disclaimers about warranties. Many services are offered “as is,” which relieves the company from providing any guarantees about the service’s performance. Warranties are typically excluded unless required by local law.

Users need to understand their rights and look for companies that provide reasonable protection against liability.

Full company list here.

Protection of Children’s Data

In today’s digital age, companies need to have clearly defined data privacy agreements to prevent the exploitation or misuse of sensitive information related to young users.

To assess how each company handles data collected from minors, our team reviewed their privacy policies to determine whether they include specific provisions and comply with laws designed to protect children’s privacy.

After reviewing these elements in the Terms of Service and privacy documents, we categorized the companies into:

• Red: Companies that provide minimal or no information about specific protections for children’s data. This could include vague references or completely missing information about how children’s data is handled.
• Yellow: Companies mention protections for children’s data but with limited detail or comprehensiveness. There may be some protections in place, such as age restrictions or additional considerations, but they may not be as robust as those that would warrant a Green Flag.
• Green: Companies with robust and clear protections specifically designed for children’s data. This includes special processes, privacy prioritization, and specific measures to ensure the safety and privacy of children.

While analyzing the ToS and PP documents for terms related to privacy and protection of children’s data, we found that very few companies have robust protections for children’s data, with only 2 companies in the Green category.

A large number of companies (more than 90%) offer minimal or no information regarding the protection of children’s data. This raises concerns about the lack of clarity or comprehensive measures in place to safeguard minors on these platforms.

This trend shows that while some companies are taking steps toward better protection, there is still a considerable gap in clear and robust policies for children’s data protection across industries.

Full company list here.

Dispute Resolution and Mandatory Arbitration

With increasing incidents of data theft, cybersecurity issues, and the misuse of stored data, companies should clearly define users’ rights to legal recourse in disputes.

We reviewed the Terms of Service (ToS) and Privacy Policies (PP) to determine how transparently the companies in our review address users’ rights in legal matters. Specifically, we assessed how many companies mandate arbitration instead of court proceedings and whether they offer options for class action waivers.

Based on our examination of the legal discourse defined in the Terms of Service documents, we categorized the companies into:

• Red: Mandatory arbitration is enforced without opt-out options, and it heavily favors the company.
• Yellow: Arbitration is mandatory but with some provisions that make the process fairer or more transparent.
• Green: Arbitration is optional or only required under specific, limited circumstances, with opportunities for users to opt-out or seek other forms of dispute resolution.

Among the analyzed companies, around 67% (Red and Yellow categories) enforce arbitration as the primary method for resolving disputes, particularly in industries like fintech, e-commerce, and digital services.

These companies also include class action waivers, limiting users’ ability to challenge disputes in court. This trend favors companies by improving efficiency and cost effectiveness of dispute resolution but also greatly limits user rights.

While Yellow-flagged companies like Amazon, PayPal, and Google offer some provisions that provide a degree of fairness and user protection, they still don’t provide the level of flexibility seen in Green-flagged companies, which allows users to seek alternative dispute resolution methods.

Full company list here.

Companies Flagged Red for Major User Control and Privacy Issues

We sought to compare different Terms of Service and Privacy Policy agreements of selected companies to understand those that pose the highest risk to user rights and privacy. To do so, we considered the following elements in their legal documents:

• Data collection, sharing, and retention policies
• Handling of sensitive data
• Complexity of terms and language
• Legal recourse for disputes

Based on these criteria, we flagged 6 out of the selected 57 companies as high-risk.

Our research reveals that all the listed companies engage in extensive data collection and share data broadly with various entities. Furthermore, the use of complex legal language and detailed terms, along with mandatory arbitration clauses, complicates users’ understanding of their rights and the full scope of data collection and sharing they have consented to.

Overall Findings and Implications

Privacy Risks: The primary risk across these companies is the potential to compromise user privacy due to extensive data collection and sharing practices.

Legal Limitations: Mandatory arbitration clauses and complex terms can significantly limit the users’ ability to protect their rights and seek recourse.

Informed Consent: The complexity and lack of clarity in terms hinder users’ understanding and management of their privacy settings.

These findings highlight the necessity of thoroughly reading and understanding these agreements before consenting, to ensure users can safeguard their privacy and maintain control over their personal data.

Companies With User-Friendly, Light-Hearted ToS

During our research, our team identified a few companies that clearly earned a Green Flag for their Terms of Service (ToS) and Privacy Policies (PP).

These companies prioritize user rights and emphasize data privacy, presenting their legal documents in straightforward, easy-to-understand language without hidden clauses or overly complex legal jargon.

Most of the companies that earned a Green Flag provide services such as search engines, email, messaging, and cloud storage. However, unlike their competitors like Google or Meta, these privacy-focused companies don’t rely on advertising-based revenue, nor do they believe in mining vast amounts of user data for training and other purposes.

Instead, they prioritize user privacy and data security, often opting for subscription-based models or other revenue streams that don’t compromise user information.

Interestingly, among the companies that earned a Green Flag, we found Apple to be a noteworthy example. Apple demonstrated a strong commitment to user privacy.

For instance, the company explicitly states in its policies that “we believe privacy is a fundamental human right.” This alignment with privacy-focused principles sets it apart from some of its closest competitors.

Terms of Service and Privacy Policies With a Quirky Twist

Our team during the research came across a few service and privacy agreements that took a light-hearted approach. While uncommon, these companies are known for incorporating quirky or humorous language into these legal documents.

These companies often balance legal precision with a hint of personality, making their terms more relatable and occasionally entertaining. Nonetheless, users should thoroughly read and understand the terms, even if they include some humor!

Methodology

This research primarily relied on manual data collection. Leading companies in the digital ecosystem were selected based on the volume of user data they handle. Each relevant website was individually accessed to obtain key documents, including Terms of Service (ToS) and Privacy Policies (PP) for analysis.

Next, AI tools were employed to process these documents, focusing on identifying and extracting key information related to user privacy and control. The extracted data was organized into a structured format for analysis.

A detailed analysis followed, uncovering patterns and insights regarding user rights and privacy, specifically how different companies address these aspects in their ToS. Finally, a comprehensive overview was created to understand how major companies in the digital ecosystem manage user data and rights.

Discussion

In conclusion, the study highlights troubling trends in how Terms of Service (ToS) and Privacy Policy (PP) agreements are created and used, affecting user rights, privacy, and control. Most of the companies analyzed showed concerning practices in data retention, payment security, and protection of children’s data.

Most notably, many companies fall into the Red or Yellow categories, revealing a lack of transparency, user control, and adequate measures to secure payment information, as well as limited protection for children’s data.

The findings also show that users have limited control over their content and often face mandatory arbitration as the only recourse to legal disputes, which often benefit companies more than users. This highlights that companies are increasingly prioritizing their own interests over user protection.

Overall, these findings call for a reevaluation of how Terms of Service and Privacy agreements are drafted and implemented. Both regulatory bodies and consumers need to advocate for greater transparency, fairness, and protection in these agreements to better safeguard user rights and privacy.

Full Data

Below is a breakdown of the data across various categories.

Privacy and Data Protection

Users’ Content Ownership Rights

Secure Payment Information System

Limitation of Liability

Protection of Children’s Data

Dispute Resolution and Mandatory Arbitration