Disclaimers - Are they Necessary? Do They Work?

13 replies
Hey Everyone,

It seems that products are hyped to sell - with results virtually guaranteed in the sales copy. Then, you buy the product, and you are presented with a "legal disclaimer" that pretty much denies everything in the sales copy.

I understand that we are an increasingly lawsuit-happy society (unfortunately), and so I see the reason for the disclaimers.

My question, though, is....

Do they REALLY prevent lawsuits?

I mean...do the disclaimers really work? or are they just "filler" that we use, HOPING we will dissuade people who might sue?
#disclaimers #work
  • Profile picture of the author PPC-Coach
    Excellent post. Very true as well. Too many products are being hyped to death and making huge promises that they never keep. I think they then hide behind the disclaimer instead of being up front and honest in the first place. I've never heard of any lawsuits, but I could provide a long list of sales letter type pages that would be great candidates for one.

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  • Profile picture of the author Michael Oksa
    Intersting question.

    The problem is where the disclaimer appears.

    Maybe you couldn't sue the author of the book for presenting the information that has a disclaimer, but I wonder if you couldn't after the sales page?

    If the sales page doesn't have the disclaimer, then it may be fair game.

    Not being a lawyer, I'm not speaking with any authority.

    Still, it makes you wonder how and where the disclaimer applies, and if it's enforceable.

    Some site do have a disclaimer page, or will add a few glossed-over phrases to protect themselves, but will they hold up in a court of law if put to the test? Again, good question, but I have no idea.



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    • Profile picture of the author Curt Dillion
      I have a lot of court room experience, and I'm well studied in certain aspects of law. Any lawyer will tell you that no one knows what will happen in court. That's true enough, judges are people, with all the faults that go with being human.

      The U.S. Constitution was written in plain English, as opposed to the legalese we are subjected to now. Article I, Section 10: "No State shall pass any law impairing the obligation of contracts." That is plain enough for anyone to understand.

      Our government is not about to even try to take that right away from us. The U.S. and State Codes depend on it. That's how they get us. All of our laws are a contract, which most people are blissfully ignorant about.

      With that said, your disclaimer is a contract between you and your buyer. That's why all businesses have them, or something similar. For books and reports, insert the following sentence somewhere in your disclaimer, and you are good to go. "The content of this document, for legal purposes, should be read or viewed for entertainment purposes only, and as a work of fiction."
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      • Profile picture of the author Blase
        I would say if you want to know about
        what can happen if there is hype and
        no disclaimers just do some research
        on what happen to Frank Kern a
        number of years ago.

        The government took everything he had!

        Offline there are lots of laws that govern advertising
        and it's my understanding that they apply to online
        advertising as well.

        Also in my opinion nothing prevents a law suit.
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        • Profile picture of the author Curt Dillion
          Originally Posted by Blase View Post

          I would say if you want to know about
          what can happen if there is hype and
          no disclaimers just do some research
          on what happen to Frank Kern a
          number of years ago.

          The government took everything he had!

          Offline there are lots of laws that govern advertising
          and it's my understanding that they apply to online
          advertising as well.

          Also in my opinion nothing prevents a law suit.
          Your post makes a good argument for asset protections, such as Limited Family Partnerships, or trusts.
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          • Profile picture of the author kindsvater
            I believe this thread has my name written all over it

            To answer a few questions:

            Yes - disclaimers can be necessary. Not in all situations, but in many.

            Yes - disclaimers do work if they are setup right.

            Yes - disclaimers can and do prevent lawsuits. I know of specific situations where because of a proper disclaimer a lawsuit was avoided.

            Something I was taught when I was a young associate many years ago is that you will never know how many claims have been prevented through the use of proper terms, licensing, and disclaimers.

            Ironically, I've also seen situations where a poor disclaimer generated a lawsuit because it gave a lawyer incentive to file.

            This is covered in my product (see my sig file - hint, hint). You may want to check it out. Sorry, but please don't be making new posts in this thread asking if this or that is legal or proper. You won't get a response by anyone with a law degree.

            I will say this about the Kern situation. No disclaimer would have helped him because the product involved a pyramid scheme.

            Finally, please ignore Curt's suggestion about language to use for which you will be good to go. While while intentioned, it will likely not do you any good.
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  • Profile picture of the author TimGross
    There's two real issues here:

    1) A legal disclaimer to cover certain things is very important; Things like "results may vary", "testimonials listed do not reflect what the average buyer will experience", "no earnings claims or guarantees are being made", etc.

    However:

    2) Trying to use legal disclaimers to void fraudulent claims in your sales letter won't help you. You can't blatantly lie in a sales letter and then mention in hidden fine print that you lied.

    To sum up: Disclaimers can keep honest sellers from accidentally running into trouble. They won't keep necessarily keep dishonest sellers from getting away with something.
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  • Profile picture of the author robd1302
    I know that any claims regarding income from trading stocks or options requires a very specific disclaimer by law, stating that markets are unpredictable on the whole and that there is no way to guarantee that following certain steps will result in a profit.

    For most "how to" methods, disclaimers are a good way to CYA, to make sure you have at least some protection over people reading your book, not using your methods correctly, and then getting angry.

    Like Tim said though, you can't use a disclaimer to counteract fraudulent claims, but rather to ensure that potential customers know that "results may vary".
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  • Profile picture of the author artwebster
    A disclaimer is only effective if it is incorporated in the terms and conditions of use.
    Terms and coonditions of use are only enforceable IF there is clear evidence that the purchaser signed as having read them them.
    A disclaimer may be seen to infringe basic rights under commercial law and so, whether signed or not, could be deemed invalid.

    On top of all that, you need to take into account all the rules of contract performance and individual interpretation of the actual meaning of phraseology as opposed to the intended meaning.

    Put simply. Disclaimers in the wrong place using imprecise language do not work.
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    • Profile picture of the author kindsvater
      Originally Posted by artwebster View Post

      A disclaimer is only effective if it is incorporated in the terms and conditions of use.
      I disagree. I disclaimer in sales copy may be enforceable, more effective, and potentially required in a situation - even if not listed in a TOS. Last time I looked the FTC website had some good examples of this.

      Of course, its still a better practice to have them in a TOS and/or to have the TOS refer to them.

      Originally Posted by artwebster View Post

      Terms and coonditions of use are only enforceable IF there is clear evidence that the purchaser signed as having read them them.
      I disagree. Think of the many products in your local store that have disclaimers, terms of use - cleaners, medicines, etc - printed on the back of the product, or in the product packaging. A purchaser may not read them, or even understand English.

      Wonder why us lawyers still insist on including them?

      Originally Posted by artwebster View Post

      A disclaimer may be seen to infringe basic rights under commercial law and so, whether signed or not, could be deemed invalid.
      Agreed, although 'commercial' law be irrelevant. That is, some laws can be waived by the parties. Other laws cannot, particularly those made in the public interest.
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  • Profile picture of the author Matt Bard
    I don't know about anyone else on this thread but I do know that Brian is a working lawer here in California.

    He is just right up the road from me and his office has actually done some legal work for a friend of mine.

    Disclaimer: He and I do not know each other personally and I am not receiving compensation for this endorsement.
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  • Profile picture of the author Roey Pimentel
    Humm... Reality check here. I'm not a lawyer, although I have experience with them. It comes down to money and emotion. The widget being disputed costs "X" amount of dollars. If a lawsuit begins, both parties are now paying upwards of $200 per hour to solve this dispute (not to mention time, energy, and aggravation sprinkled in.) Is it worth it to pursue/defend? This is where the emotion comes in. We were taught of a case back in grad school (graphic design) where an artist's original work was "stolen" and the "thief" used the art to make money selling tee shirts. The artist came across her original work in a gift shop one day and a lawsuit followed. The price of the legal fees were more than the damages. However, it got personal for that artist and she chose to follow through and take legal action. The lesson learned by the students is that, yes, you could be in the legal "right" but it will probably cost more than it is worth to pursue a lawsuit.

    So, if the "widgit" you are selling upsets the buyer so much that they want to take legal action, they probably will no matter what type of disclaimer is on the product. At that point, even if the seller's disclaimer "protects" them, they still lose, because legal action is expensive. Wouldn't it be better just to make peace with the buyer and offer them their money back? It seems an "unconditional money back guarantee" is the better way to go. It is less expensive, patches wounds, and not only builds trust, but maybe the seller can learn from it - why did the buyer not want to keep the product? What made the buyer so upset? If there is any validity to the reason(s) you can learn from it and improve your produt for the future.
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  • Profile picture of the author kingmike
    The possibilities are the, in my opinion if the disclaimer is incorporated in the terms and conditions of use of such a website than it may be more effective. it's best to take precautions and promise what you can keep and keep your promises. Paying thousands of dollars as a result of a lawsuit can be very frustrating
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