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If you require every company you work with to sign a contract with you, you'll find that no one will sell you anything.

Imagine running a cloud service, where you make $10/month/user, and having to read through a separate contract for each person. Does that make sense?

The reality is, you have limited control over a product that you've paid $5, $50, or even $500 for. At most you can get a refund if you're unhappy with the service you received. You cannot force the team of developers to continue work on something, unless you're paying the millions of dollars that that costs.



It doesn't have to be legally binding. The damage it can do to a reputation is deterrent enough.

And it's not difficult to see how adopting it can have benefits: http://blog.flickr.net/en/2011/05/13/at-flickr-your-photos-a....

A lot of people are abandoning Instagram not because of the ToS per se, but because they were reminded that it is now owned by Facebook. And Facebook's reputation is horrible.

Look at what Tumblr are doing by posting their policies on GitHub, which lets everyone see the diffs: https://github.com/tumblr/policy.

Goodwill doesn't have to be legally tethered. But it can be.




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