End-users given a raw deal on software licences

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Technology companies including Microsoft and Apple have been accused of misleading computer users into signing away their rights with unfair end-user licence agreements.

The National Consumer Council (NCC) has referred 17 software companies to the Office of Fair Trading (OFT). It has also prepared evidence for the European Commission to try and prompt changes in its consumer rights and protection directives, which the NCC views as inadequate.

"Plugging the gaps in consumer legislation is a vital move," said NCC senior policy advocate Carl Belgrove.

The NCC research, supported by findings from consumer organisations in Norway and Germany, suggests that many leading software companies are shifting legal responsibilities to the consumer.

Apple does not comment on on-going investigations, but Microsoft said: "[We have] not yet seen the detail of the NCC's report and so we are unable to comment on the detail at this stage. However, Microsoft is committed to dealing fairly with consumers and addressing any concerns they may have and would be happy to talk to the NCC directly about its concerns".

The survey looked at 25 computer software products. Most of the software lacked clear information that was simple to understand, with more than half of them neglecting to mention that installing the software meant the user accepting a licence agreement (EULA).

"Consumers can't have a clue what they're signing up to when terms and conditions run to 10 or more pages. There's a significant imbalance between the rights of the consumer and the rights of the holder," Belgrove said.

Users were unable to make informed decisions about the licence agreements. Only four companies included a web link to an online copy of the agreement, and on seven products the only way you could see the EULA was onscreen.

A specific example in the report was the Symantec Norton 360 anti-virus package that gave the provider the right to suspend services for software misuse or a suspected failure to comply with the agreement.

The survey inferred that a user could face a court case before being able to use the software again, and even then there was no guarantee that they would be able to get their data back. A second clause also appeared to allow Symantec to alter the product without notice to the consumer.

Symantec said in reply: "We are aware of the report by the National Consumer Council (NCC) and we are actively looking into it further. As always, we are ready to work with key consumer and stakeholder groups and would welcome the opportunity to engage with the NCC and any other organisations in order to best serve the interests of our customers."

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