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$5,000 Fine for EULA Violation

By Ed Foster, Section The Gripelog
Posted on Thu Sep 01, 2005 at 06:33:21 PM PDT

I must admit that when I first started collecting bad EULA terns a decade ago, the really outrageous ones struck me as more funny than dangerous. But as a story that appeared recently illustrates yet again, we can no longer assume that some companies won't try to use even the most outlandish terms hiding in their sneakwrap agreements.


A reader has pointed out a remarkable tale recently aired by WCBS-TV in New York. Consumer affairs reporter Arnold Diaz discovered a Queens woman who had made the mistake of using the services of an outfit called Parkingticket.com to try to get a $115 parking ticket dismissed. Not only was the ticket not dismissed, but she was informed by Parkingticket.com that they were going to charge her $5,000 for violating their terms and conditions.

The woman's sin had apparently been removing one sentence from the letter that Parkingticket.com had instructed her to write the traffic bureau, which she had removed because the statement was untrue. While it was understandable that she didn't want to send the authorities a letter with a lie in it, modifying the letter certainly would seem to violate this term in the Parkingticket.com license:

20. Unauthorized use. Customer agrees not to copy, edit or modify any material prepared by parkingticket.com for any use other than to submit that paperwork to the respective municipality for the dismissal of a parking ticket for which Customer has paid parkingticket.com in advance. Should Customer copy, edit, modify or otherwise alter paperwork prepared by parkingticket.com for their benefit or the benefit of any other related or unrelated third party and uses that paperwork, or a facsimile thereof, for the purposes of fighting a parking ticket for which they have not paid parkingticket.com, Customer agrees such use would constitute an unauthorized use of parkingticket.com's services. Customer further agrees that such unauthorized use of parkingticket.com's services will be billable and chargeable at a fee of no less than five thousand dollars per occurrence.

Not only was Parkingticket.com charging her credit card $5,000, but the company threatened to bring criminal charges against her if she filed a credit card dispute with her bank. Exactly what crime they would accuse her of committing isn't entirely clear from the story, although another provision in the license hints that editing their materials is also a copyright violation:

22. Copyright and Intellectual Property Clause. Customer acknowledges and agrees that all materials prepared by parkingticket.com are the intellectual property of parkingticket.com. Customer further agrees not to copy, edit or otherwise use such property for any purpose whatsoever without express, written and signed authorization by an Officer of parkingticket.com. Should Customer use such intellectual property without such written consent as described above then Customer agrees that parkingticket.com will be entitled to collect a fee from Customer for a minimum of $5,000.00 for each unauthorized use. In such an event, Customer specifically authorizes parkingticket.com to charge Customers credit or debit card or checking account for such fees. Should Customer contest such fees Customer agrees that it will compensate parkingticket.com for reasonable legal fees and related court courts to bring an action to collect such fees and to obtain an injunction by any court of competent jurisdiction against Customer's use of parkingticket.com materials.

While Parkingticket.com beat a hasty retreat once Diaz got involved, the story is one that demonstrates just how far some operations are willing to push their sneakwrap terms. But the truly sad fact is that there is no longer any guarantee that they can't get away with it. Every day brings more evidence of how our politicians want to eliminate consumer rights in the name of intellectual property protection, and how our judges are enforcing fine print disclaimers that would have been laughed out of court not long ago. And there is nothing at all funny about that.

< Dell Won't Recall Defective Motherboards | Wiki-izing the Dell Story >


Display: Sort:
$5,000 Fine for EULA Violation | 27 comments (27 topical) | Post A Comment
It is to laugh[ Reply to This ] (none / 0) (#1)
by Anonymous User on Fri Sep 02, 2005 at 08:02:54 AM PDT

Fine print at the bottom of the parkingticket.com home page:

Mission Statement: We aspire to bring about fairness and equity to those whom we serve
through the force of Truth, the power of Knowledge and the strength of Decency.

[ Reply to This ]



They wanted her to lie?[ Reply to This ] (none / 0) (#2)
by Anonymous User on Fri Sep 02, 2005 at 03:18:09 PM PDT

At what point does the combination of the coersive force of the EULA and the erroneous actions of Parkingticket.com lead to the subornation of perjury?

[ Reply to This ]


Next story[ Reply to This ] (none / 0) (#3)
by Anonymous User on Fri Sep 02, 2005 at 06:08:21 PM PDT

Next story please

[ Reply to This ]


àíòèìàóëíåòèçì antimaulnetizm[ Parent | Reply to This ] (none / 0) (#33)
by Anonymous User on Fri Jun 13, 2008 at 03:51:28 PM PDT

àíòèìàóëíåòèçì

[ Parent | Reply to This ]


Very disturbing[ Reply to This ] (none / 0) (#4)
by tcsbiz on Sat Sep 03, 2005 at 08:45:20 AM PDT

After reading the article from WCBS reporter Diaz, I am disturbed not by the policies of parkingticket.com but by the actions of the driver of the car. She tried to get out of a parking ticket she deserved to get. She parked illegally at a bus stop and was fined. Just pay the ticket and be done with it!

[ Reply to This ]


Granted, but ...[ Parent | Reply to This ] (none / 0) (#5)
by Anonymous User on Sun Sep 04, 2005 at 07:55:57 PM PDT

In this instance, she figured, "I did the wrong thing, but if I go through this company, I'll either get the ticket rescinded, in which case I pay only half what the ticket would cost me, or I don't, in which case I pay the ticket cost only. I can't lose."

So you can fight, and maybe get back half what you'd pay if you didn't fight, with no immediately obvious downside. With nothing to lose, why would any sane person not fight the ticket?

Having said all of that, I do agree that if you've done the wrong thing, you should accept it, pay the penalty, and move on. But that isn't the thrust of what we're discussing; we're discussing whether it is fair and reasonable for a $5,000 slug for editing something provided to you for a particular purpose when it doesn't fit that purpose initially. It does seem obvious, though, that the whole story isn't being told here, and I doubt it will ever be seen on any location.

[ Parent | Reply to This ]



It boils down to....[ Parent | Reply to This ] (none / 0) (#6)
by Anonymous User on Tue Sep 06, 2005 at 12:56:58 PM PDT

What it boils down to is the increasing problem of companies taking advantage of their own customers, and a government that does nothing about it....

[ Parent | Reply to This ]


Fair and reasonable[ Parent | Reply to This ] (none / 0) (#17)
by tcsbiz on Sat Sep 10, 2005 at 08:51:45 PM PDT

Fair and reasonable have nothing to do with it. The company's agreement states pretty clearly, for legalese anyway, what the penalty is. If you accept the terms and contract parkingticket.com to help fight a ticket, it seems to me that parkingticket.com has a right to go after payment if you violate their terms. They are terms that I would never accept. Their agreement also states that if you are not successfulin at least getting a reduction, you get your money back. The customer should have the right to do that because the parking authority ignored the letter.

[ Parent | Reply to This ]


pasing[ Parent | Reply to This ] (none / 0) (#32)
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[ Parent | Reply to This ]


I imagine that is what parkingticket.com relies on[ Parent | Reply to This ] (none / 0) (#8)
by ekuns on Tue Sep 06, 2005 at 01:30:55 PM PDT

I imagine they rely on the fact that people who use their service have something to hide -- even if it is something minor like getting a parking ticket -- so they will not complain when the unreasonable terms are brought to bear. If we allow a company to enforce terms on someone who has done an unrelated wrong, then it is not much more work for them to enforce those terms on someone who has done nothing wrong.

I have to agree with you about the ethics of a person who will try to get out of a parking ticket they deserved to get. I've gotten a couple parking tickets in my life, only one of which I did not deserve. I parked at a defective parking meter that refused to take money, got a ticket on a Friday, travelled home over the weekend, called on Monday (when they were open) to contest the ticket and got back, "It works for us today." Grumble, grumble. That's the kind of parking ticket I would support someone using a service like this for.

But two wrongs do not make a right. If we allow the company to take advantage of someone who was trying to do something unethical, then the company will be able to establish legal precedent and then the rest of us are in the soup.



[ Parent | Reply to This ]


Actually - they didn't follow their own T&C[ Reply to This ] (none / 0) (#7)
by Anonymous User on Tue Sep 06, 2005 at 01:15:26 PM PDT

If you re-read the T&C, the $5,000 applies only if you edit and use the letter for tickets other than the one the letter was prepared for. It would seem that you can edit the letter as long as you submit it against the same offense. That said, I'm more disturbed by the $50 you agree to pay if you dispute any credit card charges + the amount of the dispute. That has to violate the Credit card companies merchant agreements, not to mention the federal fair credit act.

[ Reply to This ]


I thought the same thing[ Parent | Reply to This ] (none / 0) (#19)
by Anonymous User on Thu Sep 15, 2005 at 11:35:05 AM PDT

If you read the "Unauthorized use" paragraph, you're right.
20. Unauthorized use. Customer agrees not to copy, edit or modify any material prepared by parkingticket.com for any use other than to submit that paperwork to the respective municipality for the dismissal of a parking ticket for which Customer has paid parkingticket.com in advance. Should Customer copy, edit, modify or otherwise alter paperwork prepared by parkingticket.com for their benefit or the benefit of any other related or unrelated third party and uses that paperwork, or a facsimile thereof, for the purposes of fighting a parking ticket for which they have not paid parkingticket.com, Customer agrees such use would constitute an unauthorized use of parkingticket.com's services.
But then you get to the "Copyright and Intellectual Property Clause".
22. Copyright and Intellectual Property Clause. Customer acknowledges and agrees that all materials prepared by parkingticket.com are the intellectual property of parkingticket.com. Customer further agrees not to copy, edit or otherwise use such property for any purpose whatsoever without express, written and signed authorization by an Officer of parkingticket.com. Should Customer use such intellectual property without such written consent as described above then Customer agrees that parkingticket.com will be entitled to collect a fee from Customer for a minimum of $5,000.00 for each unauthorized use.
Both paragraphs snipped, emphasis is mine. Drew

[ Parent | Reply to This ]


So there was no violation of the EULA?[ Parent | Reply to This ] (none / 0) (#23)
by Anonymous User on Wed Oct 26, 2005 at 09:07:41 PM PDT

So what's the buzz?

[ Parent | Reply to This ]


pasing[ Parent | Reply to This ] (none / 0) (#31)
by Anonymous User on Thu Jun 12, 2008 at 02:45:57 AM PDT

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[ Parent | Reply to This ]


Unbelievable![ Reply to This ] (none / 0) (#9)
by Anonymous User on Tue Sep 06, 2005 at 05:35:07 PM PDT

This company must be a subsidiary of Halliburton!

[ Reply to This ]


Re: Halliburton[ Parent | Reply to This ] (none / 0) (#13)
by Anonymous User on Thu Sep 08, 2005 at 10:01:37 AM PDT

Please!

[ Parent | Reply to This ]


Halliburton??[ Reply to This ] (none / 0) (#10)
by Anonymous User on Tue Sep 06, 2005 at 05:47:01 PM PDT

I have bought products at a Halliburton owned manufacturing plant site and have been treated with the greatest of deference and service such that I would never consider going anywhere else for that product. If someone has had a different experience, it would be interesting to me to learn about it.

[ Reply to This ]


The business is to take advantage of the public[ Parent | Reply to This ] (none / 0) (#11)
by Anonymous User on Tue Sep 06, 2005 at 10:57:58 PM PDT

I have a credit card from Disney. The bank behind it can CHASE me forever if they think I am going to use a card with a 6 page disclousure that takes everything and gives nothing. The unilateral nature of this crap has to be stopped, or the standard of living in this country will errode to that of facist dictatorships of the last century.

[ Parent | Reply to This ]


Virtually Any Credit Card...[ Parent | Reply to This ] (none / 0) (#12)
by Anonymous User on Wed Sep 07, 2005 at 12:20:48 AM PDT

that solicits your business based on reduced interest rates, special offers, or special affiliations (i.e., your union, university, airline, local retailer, AAA, ASRP, ASPA, etc., etc.) will get into your pocket for interest rates that are way out somewhere in the ether. If you don't deal directly with the card company (and you have to watch out even for your own sponsoring bank in this case), eventually the interest rates will escallate to 21 percent or way beyond. The provisions for that are ALWAYS buried way down in the small print of the agreement and they kick in somewhere between 6 and 12 months. Buyer Beware!

[ Parent | Reply to This ]


boy howdy![ Parent | Reply to This ] (none / 0) (#14)
by Anonymous User on Thu Sep 08, 2005 at 10:09:55 AM PDT

Can I relate to that! When my hometown bank finally moved into the 20th century and offered on-line banking, I refused to sign up because their TOS involved more paperwork than their loans! And almost every clause was there to protect THEM! The bulk of the document spelled out all of the conceivable things that could go wrong with online banking - and virtually all of it was considered the customer's problem with no liability on the bank's part and no recourse for the customer. To this day, I don't know anyone who actually signed up for it.

[ Parent | Reply to This ]


Ah yup![ Parent | Reply to This ] (none / 0) (#15)
by Anonymous User on Thu Sep 08, 2005 at 11:07:50 AM PDT

My horror story: https://care.usbank.com As far as I know, it costs nothing to read their TOS, but ya never know. I'm forced to say yes to this every month by my employer. obtw, that happens to be a major armed service. <grin>

[ Parent | Reply to This ]


Re: Ah yup![ Parent | Reply to This ] (none / 0) (#16)
by Ed Foster on Sat Sep 10, 2005 at 12:08:27 PM PDT

That's an ugly one. So you're required to read this every month, even if it hasn't changed? -- Ed

[ Parent | Reply to This ]


Re: Ah yup![ Parent | Reply to This ] (none / 0) (#18)
by Anonymous User on Wed Sep 14, 2005 at 12:29:53 AM PDT

Yuk, You just know they're up to no good when they stuff a excruciatingly long EULA into a tiny little box like that. Run away if you can. :-P

[ Parent | Reply to This ]


pasing[ Parent | Reply to This ] (none / 0) (#35)
by Anonymous User on Thu Jun 19, 2008 at 12:04:34 AM PDT

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  • [ Parent | Reply to This ]


    Contract against the Public Interest[ Reply to This ] (none / 0) (#21)
    by Anonymous User on Mon Sep 26, 2005 at 07:41:12 PM PDT

    Uhh... so let me get this staight, Parkingticket.com is advising people to committ a felony (perjury)? For some reason, I don't see even the most bought off judges buying their EULA. The EULA is clearly against the public interest, and an incitment to an illegal act in this case. It is completely unenforceable in every jurisdiction I'm aware of. That being said, they lady may very well have to go to court.

    [ Reply to This ]


    aderalahoo.com[ Reply to This ] (none / 0) (#30)
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    wslaat[ Reply to This ] (none / 0) (#34)
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    [ Reply to This ]


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