Can an internet developer contract that if their servers are hacked they are not liable for data security?

Question

Here's the language...."Vendor compiles information from visitors of Company’s websites and information provided by Company from its customers (collectively “User Information”). All User Information is stored in Vendor’s database. Vendor takes precautions to ensure that User Information is kept private and uses industry-accepted encryption methods to protect User Information that is stored within Vendor’s database. Vendor cannot, however, guarantee the security of User Information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of User Information at any time."

Just wondering if this was standard. I think they should be liable if they could have prevented.

Thanks for any help.

Eg

Answer 1

it's boiler plate. Yes they can do that, they could put in that little green men run their systems. but if you lose data, it's not their fault. It basically does say they're not liable, but it's a chicken or the egg thing, that if they're supposed to do security, and they still get compromised then they're still liable because they wer supposed to do their job and do security. but they recognise that no security is 1005 and though they take precautions, they do disclose it's posibility and thus you're agreeing that they aren't liable. so yes they can say that, and if you sign it you agree as long as they take resonable precautions, that they aren't libale if the security get compromised...

Crazy huh?

Answer 2

The reason why they would not be liable period is because they are in the business of managing the data and not securing it. They are making an attempt to prevent security breaches and the misuse of information but they cannot think of everything that can go wrong as a result of negligence.

Answer 3

by hiring them, you accept their contract. so, they aren't liable if you accept the contract.

Answer 4

It may not be standard, but if you sign it, it is enforceable.