Surprise, you just signed a contract! How hidden contracts took over the internet

Planet Money

NPR

Business, News

4.6 • 29.8K Ratings

🗓️ 15 July 2023

⏱️ 24 minutes

🔗️ Recording | iTunes | RSS

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Summary

When you make an account online or install an app, you are probably entering into a legally enforceable contract. Even if you never signed anything. These days, we enter into these contracts so often, it can feel like no big deal.

But then there are the horror stories like Greg Selden's. He tried to sue AirBnB for racial discrimination while using their site. But he had basically signed away his ability to sue AirBnB when he made an account. That agreement was tucked away in a little red link, something most people might not even bother to click through.

But, it wasn't always like this. On today's show, we go back in time to understand how the law of contracts got rewritten. And why today, you can accept a contract without even noticing it.

This episode was hosted by Emma Peaslee and Jeff Guo, and was produced by James Sneed. It was edited by Jess Jiang and fact-checked by Sierra Juarez. It was engineered by James Willetts. Alex Goldmark is our Executive Producer.

Help support Planet Money and get bonus episodes by subscribing to Planet Money+ in Apple Podcasts or at plus.npr.org/planetmoney. Always free at these links: Apple Podcasts, Spotify, Google Podcasts, NPR One or anywhere you get podcasts.

Transcript

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0:00.0	This is Planet Money from NPR.
0:03.0	You know when you're downloading a nap or signing up for a website?
0:09.7	There's those little check boxes or sometimes it's just a link.
0:13.8	Read our terms of service.
0:14.8	They're like everywhere.
0:15.8	Yeah, well I never used to read those things.
0:19.0	Me neither.
0:20.0	We're all just like clicking next next next next next and we never think about it.
0:23.5	Yeah, it's like that warning label on a mattress.
0:26.0	And then there are these stories about how these terms of service have real legal consequences.
0:32.5	At that time, the only real thing on our mind was, you know, we're about to go have a good
0:37.5	time.
0:38.5	Back in 2015, Greg Seldin was planning this little romantic getaway to Philly.
0:42.9	He heard about Airbnb and he thought he'd try it out to find a place to stay.
0:46.6	So he made an account and we should say Airbnb is a financial supporter of NPR.
0:52.0	I'm clicking the button and thinking, you know, we're good to go.
0:55.0	I'm not looking for, oh, where's the terms of service that that's not my concern.
1:00.7	I mean, it is now, of course, but during that time, it wasn't a concern for me.
1:06.5	Greg starts browsing and finds this cute little row house right in the middle of downtown.
1:11.4	Perfect.
1:12.4	Except when he goes to rent it out, the host tells him, actually, this isn't available
1:16.4	anymore.
	...

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