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Exploding the Fine Print: Designing Visual, Interactive, Consumer-Centric Contracts and Disclosures

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Part of the book series: Perspectives in Law, Business and Innovation ((PLBI))

Abstract

In this chapter, we present new models for the presentation of contracting terms and interactions, based on user research and design work into consumer contracts . As more contracts become machine-readable , there is an open question of how people will actually interact with these computable contracts , so that they can effectively, efficiently, and meaningfully use them. At Stanford Legal Design Lab we went through several human-centered design cycles to generate new contract designs, gather qualitative feedback about them, and then propose guiding insights and new conceptual models for better consumer-facing legal communications. This initial study led to key principles, models, and patterns that demonstrate how consumer contracts can be more comprehensible, engaging, and effective. Following on this qualitative design research, we then conducted more structured, qualitative evaluations of the new contract interface models that we had designed. We did a comparative study of how users engaged with and used different interface models to determine which ones were most effective. Effectiveness is judged on several criteria: the ability to engage the attention and actions of the user, the ability to help the user comprehend the content that it is communicating, and the ability to help the user make a decision that fits with his or her own preferences and needs. This study can serve all those interested in improving disclosures, terms of service, privacy policies , and various other forms of business -to-consumer contracts . It provides empirical research on new models for communicating complex terms and conditions to lay people. It bridges the literature of contract design for improved usability and outcomes, behavioral economics ’ concern for choice engines and decision making, legal scholarship on the effectiveness of disclosure as a regulatory mechanism, and HCI research on how best to engage users and help them navigate systems.

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Notes

  1. 1.

    See generally studies of the difficulty of reading consumer contracts and policies, including McDonald and Cranor (2008), McDonald (2009), Ben-Shahar and Chilton (2016).

  2. 2.

    The literature on contract design and policy design proposes some new alternatives to the standard, de facto Legal Design , and in so doing demonstrate how the de facto designs fail to engage or inform people. See Passera et al. (2013), Passera and Haapio (2013), Ayres and Schwartz (2014), Passera (2012).

  3. 3.

    See Berger-Walliser et al. (2011), Salo and Haapio (n.d.), Fraser and Roberge (2016).

  4. 4.

    Moringiello (2014), p. 276.

  5. 5.

    Gerding (2013).

  6. 6.

    Passera et al. (2013).

  7. 7.

    Passera et al. (2013).

  8. 8.

    Gerding (2013).

  9. 9.

    Peppet (2012).

  10. 10.

    Peppet (2012).

  11. 11.

    Adams (2011, 2012).

  12. 12.

    Adams (2011, 2012).

  13. 13.

    Calo (2013).

  14. 14.

    Schaub (2015).

  15. 15.

    Schaub (2015), pp. 6–7.

  16. 16.

    Triantis (2013).

  17. 17.

    Smith (2006).

  18. 18.

    Lisachenko (2012).

  19. 19.

    Padula (2014).

  20. 20.

    Surden (2012).

  21. 21.

    Surden (2012), pp. 634–635.

  22. 22.

    Surden (2012), p. 646.

  23. 23.

    Surden (2012), p. 640.

  24. 24.

    Surden (2012), pp. 636–637.

  25. 25.

    Surden (2012), p. 658.

  26. 26.

    Flood and Goodenough (2015).

  27. 27.

    Thaler and Tucker (2013).

  28. 28.

    Thaler and Tucker (2013).

  29. 29.

    Shankar (2015).

  30. 30.

    Gurin and Noveck (2013), p. 183.

  31. 31.

    Thaler and Tucker (2013).

  32. 32.

    Gurin and Noveck (2013), p. 192.

  33. 33.

    See WhistleOut (2018).

  34. 34.

    See NerdWallet (2018).

  35. 35.

    See AwardMe (n.d.), Walla (n.d.).

  36. 36.

    See National Center for Education Statistics (n.d.).

  37. 37.

    See for example, its mortgage interest rate comparison tool. Consumer Financial Protection Bureau (n.d.).

  38. 38.

    Valberg (2014).

  39. 39.

    Mullen (2015).

  40. 40.

    Salazar and Bergstrom (2014).

  41. 41.

    Balmford (2018).

  42. 42.

    See Plain Language (n.d.).

  43. 43.

    Passera (2018).

  44. 44.

    Passera (2018).

  45. 45.

    Ben-Shahar and Chilton (2016).

  46. 46.

    Passera (2018).

  47. 47.

    Passera and Happio (2013).

  48. 48.

    See Passera (2018) for more of such designs.

  49. 49.

    Some articles present reviews of these new design styles. See Haapio et al. (2016), Brunschwig (2014), Mitchell (2015).

  50. 50.

    These icon examples include the Privicons, the Know Privacy Icons, and the Mozilla Privacy Icons. Aza Raskin, a designer at Mozilla, led a small group to create standardized icons for representing common data practices. Each icon had variations, depending on if the company and policy allowed a practice, prohibited it, or had some third way.

  51. 51.

    See Kleimann Communication Group (2009, 2013).

  52. 52.

    Passera (2018).

  53. 53.

    Passera (2018).

  54. 54.

    Rao (2011).

  55. 55.

    Facebook Help Center (n.d.).

  56. 56.

    See work from the Usable Privacy Project network, including Zimmeck (2017), Liu (2014), McDonald and Cranor (2008).

  57. 57.

    For class information, see Stanford Law School (n.d.).

  58. 58.

    Zimmerman et al. (2007).

  59. 59.

    Some participants dropped out of the survey midway, so though we had 125 participants who completed most of the survey, we had a total of 190 participants who began the survey.

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Correspondence to Margaret Hagan .

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Hagan, M. (2019). Exploding the Fine Print: Designing Visual, Interactive, Consumer-Centric Contracts and Disclosures. In: Corrales, M., Fenwick, M., Haapio, H. (eds) Legal Tech, Smart Contracts and Blockchain. Perspectives in Law, Business and Innovation. Springer, Singapore. https://doi.org/10.1007/978-981-13-6086-2_4

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  • DOI: https://doi.org/10.1007/978-981-13-6086-2_4

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