Violate Terms of Service = $10,000 Fine?!

Take a look at

In particular, look at their Terms of Service.

Does anyone else think this is a bit extreme?

4. Violations.
In addition to any and all remedies at law or in equity, any intentional violation of the Terms shall give iKarma the right to immediately suspend or cancel Services or Accounts without further liability. Furthermore, User specifically agrees that any intentional violation shall result in immediate liability for liquidated damages in the amount of Ten Thousand Dollars ($10,000.00) for breach of contract.

I mean, geeze guys, you’re still in beta for crying out loud. Do you think this is welcoming to new users?

Their service looks interesting, and they have a really neat graphical network view. But I can’t see taking on a potential $10k liability to sign up for eanyone’s product. I don’t care what it is.

What do you think?

3 thoughts on “Violate Terms of Service = $10,000 Fine?!

  1. I apologize if our TOS makes anyone nervous. That certainly wasn’t our intent. Our attorney assured us that this was becoming an accepted method of thwarting bog spammers. The amount we set was set based on the $5000 it would cost to simply hire an attorney to sue a persistent spammer and another $5000 for the discovery and court costs. If you or your readers REALLY have a problem with this we would be foolish not to change it. But I think everyone is tired of spam and frustrated by the technological limits to solving the problem. Spammers won’t stop till site owners go after them. Site owners can’t afford to go after spammers till there is an economic incentive to do so. I welcome your thoughts.


  2. Paul,

    Thanks for your comment!

    I understand your rationale, but I think a lot of folks will have
    trouble being comfortable that only spammers will be targeted. I do agree
    that spammers are a real problem (I get spam comments every day) and
    some way needs to be found to deal with them.

    Perhaps some language along the lines of “Users who we determine are
    persistantly and repeatedly violating the agreement…” to let people
    know you’re not after the merely ignorant or careless?


  3. The thing I think is funny is that I ran across this webpage by google-ing “ikarma+spam+email”, trying to find a way to get rid of the 3-5 spam emails I get per day about iKarma. Every single one has the same body (a news article saying how great it is), but it always has a different subject and sender email. I find it ironic that this company charges $10,000 for spamming people, yet I receive spam about the company several times per day.


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