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Terms and Conditions
Website Terms of Use and Privacy Policy
By accessing, viewing, or using the material on www.caresource.com, you accept and agree to the following Terms of Use.
Information You Give Us
Any personally identifiable data that you enter on our website may be stored in order to assist you with your inquiry. The information may also be stored in an effort to continually improve communication and develop new services relevant to our members, providers, and the community-at-large. Personally Identifiable Information (PII) may include your name, address, e-mail address, information regarding your interests, and feedback. In order to protect your privacy, please do not use this website to communicate information to us that you consider confidential (such as your member number or social security number). If you wish to communicate such information please use one of our secure websites, web forms, or phone numbers/mailing addresses provided.
If you choose not to provide the information, you can still enter the website; however you may be unable to participate in certain segments of the site or receive communications though our site.
We may also collect other information (“usage data”) when you visit our website such as the type of browser you are using ( e.g. Firefox, Internet Explorer, Safari), the type of operating system you are using ( e.g. Windows XP/7 or Mac OS), and the domain name of your Internet service provider ( e.g. earthlink.net, aol.com). We may use this information to improve the design and content of our website and to personalize your Internet experience. We may use this information to analyze website usage, as well as to offer you programs and services. Finally, we may use this type of information to solve problems with our server and to administer our website.
Cookies
When you view our website, we may store some information on your computer. This information may be in the form of “cookies.” Cookies are small text files we place in your computer’s browser to store your preferences and make your visit to our website more enjoyable. For example, we may use cookies to recognize your name when you return to our website. If you prefer, most browsers can be configured not to accept cookies or to indicate to the user when a cookie is being sent.
Data Sharing
We do not share, trade or sell personal information without your consent. However, we may share statistical data from our visitors with our business partners. For example, we may advise a partner that 20,000 people visited a web page to access particular information. On occasion, we may share personal data such as name, mailing address and e-mail address with vendors, partners or contractors of CareSource. These vendors perform services for CareSource and may not share or resell this information. CareSource will disclose information we maintain when required to do so by law. We will not disclose information to any third parties except in other ways consistent with this privacy policy. In any case in which we disclose the information, the disclosure shall be consistent with applicable laws and regulations and we will require the recipient to protect the information and use it only for the purpose it was provided.
Collection of Information By Third-Party Sites
Some of our pages may contain links to other sites whose corporate practices may be different than those of CareSource. Please consult the other sites’ privacy statements, as we have no control over information that is submitted or collected by these other entities.
Your E-Mail
We want to hear your comments and questions and have provided several phone numbers, mailing addresses, and e-mail addresses throughout this Website for that purpose. However, you should be aware that most e-mail systems currently are not protected from third parties, who may be able to access your e-mail without your knowledge or permission. In order to protect your privacy, please do not use e-mail to communicate information to us that you consider confidential. If you wish to communicate such information please use one of our secure Web forms, or phone numbers/mailing addresses provided.
Secure Website Services
Certain online services are available to CareSource members and providers via our Secure Website Services. The secure website services require a password to log in before accessing information. CareSource complies with the privacy and security requirements under the Health Insurance Portability and Accountability Act (HIPAA). CareSource may use and share the information that you provide to us via our secure website services to provide you with your health care benefits. Please read the CareSource Privacy Practices located within the Members information section for each plan. The Privacy Practices explain in detail how we may use and disclose Protected Health Information (PHI).
Understand that the confidentiality of individually identifiable health information entered via our secure website services is protected by federal and state law. By using our secure website services, you represent to CareSource that you are either (i) the individual to whom this account pertains, or (ii) legally authorized under applicable law to receive health care information regarding, and to make health care decisions for, the individual to whom this account pertains (for example, as the parent, legal guardian or legal custodian of such individual).
Our Commitment to Security
CareSource has instituted physical, electronic and managerial safeguards to prevent unauthorized access, maintain data security and use of the information we collect online.
Not a Substitute for Professional Health Care or Advice
No doctor-patient relationship is established between CareSource and you by reason of your use of our website or under any circumstances whatsoever. The information contained on this website is general in nature and is intended for educational purposes only. If you have specific health care needs, or for complete health information, please see a doctor or other health care provider.
CareSource is not a referral service and does not recommend or endorse any particular health care service or provider. CareSource does not offer advice regarding the quality or suitability of any particular health care provider for specific treatments or health conditions, and no information in this website should be construed as health advice.
No Legal Advice
Nothing contained, expressed, or implied on this website is intended as, nor shall be construed or understood as, legal advice, guidance, or interpretation. No attorney-client relationship is established between CareSource and you by reason of your use of this website or under any circumstances whatsoever. The information on this website if for general informational purposes only. If you have questions about any law, statute, regulation, or requirement expressly or implicitly referenced in this Site, you should contact your own legal counsel.
Disclaimer
CareSource continually updates the information provided on this website in order to keep the information as current and accurate as possible, however, it is possible that the website may contain inaccuracies, errors or unauthorized modifications by third parties. CareSource does not make any express or implied warranties as to the accuracy of any information on this website. Information contained on our websites may be changed or updated without notice.
Any links to other non-CareSource websites are solely for your convenience in obtaining related information. Such inclusion or mention does not constitute or imply a recommendation or endorsement by CareSource. CareSource does not control the contents of these websites and does not guarantee the accuracy or completeness of any such information
The information presented on our website is not intended to constitute an offer to sell or a solicitation in connection with any service. If you are interested in any of CareSource’s services, please contact us for a complete description of the product and its availability.
Proprietary Rights
This website and all copyrights, service marks, and other proprietary notices are owned and operated by CareSource. Any unauthorized use may violate copyright, trademark, or other applicable laws.
Limitations of Liability
Under no circumstances including, but not limited to, negligence, shall CareSource or the CareSource Family of Companies be liable for any direct, indirect, incidental, special, consequential or punitive damages that result from the use of, or the inability to use the CareSource materials contained herein. By using our website, you acknowledge and agree that CareSource is not liable for any defamatory, offensive or illegal conduct of any user. If you are dissatisfied with any of the CareSource materials contained herein, or with any of CareSource’s terms of use and conditions, your sole and exclusive remedy is to discontinue using this website.
Governing Law and Jurisdiction
This website is controlled and operated by CareSource from its headquarters in Dayton, Ohio. These Terms of Use will be governed by and construed in accordance with the laws of the State of Ohio, without reference to its choice of law rules. By accessing, viewing, or using the material on this website, you consent to the jurisdiction of the federal and state courts in Montgomery County, Ohio, and agree to accept service of process by mail and hereby waive any and all jurisdictional and venue defenses otherwise available.
Social Media Disclaimer
Our mission is to make a lasting difference in our members’ lives by improving their health and well-being. We call it our “heartbeat” and it becomes the foundation for all of our posts and interactions on social media websites.
We encourage and welcome individuals to engage with CareSource on our Social Media websites and platforms. We want to hear your comments and questions about your experience with CareSource and we appreciate any feedback that helps us better serve our members and communities! We have provided several telephone numbers, mailing addresses, and email addresses throughout our websites for that purpose. However, you should be aware that most email systems currently are not protected from third parties, who may be able to access your email without your knowledge or permission. In order to protect your privacy, please do not use email to communicate information to us that you consider confidential. If you wish to communicate such information, then please use one of our secure Web forms, or phone numbers/mailing addresses provided on www.caresource.com.
The opinions or views expressed on CareSource social media websites and platforms (including, but not limited to, Facebook, Twitter, LinkedIn, Pinterest, YouTube, Google+, Instagram, etc.) represent the thoughts of individual users and online communities, and not necessarily those of CareSource or any of its partners, affiliates or any of their respective directors, officers, employees, staff or members of its respective board of directors. The opinions and views expressed on CareSource’s social media websites and platforms do not in any way reflect the views of the site they are posted on, other sites affiliated with the site, the CareSource staff involved with maintaining the site or any members of the site. By submitting content (defined as materials, advice, representations, opinions and views) to any of CareSource’s social media sites or platforms, you understand and acknowledge that this information is available to the public, and that you are allowing CareSource, and its affiliates, to have a permanent and irrevocable right to use your comments for CareSource business purposes including but not limited to internal and external marketing. This could include using, republishing, reproducing, distributing, changing or displaying the comments across CareSource brand products and other websites without restriction from time of submission in perpetuity. Please note that other participants may use your posted information beyond the control of CareSource. If you do not wish to have the information you have made available via this site used, published, copied and/or reprinted, please do not post on CareSource’s social media websites and platforms.
While CareSource makes reasonable efforts to monitor and moderate content posted on its social media platforms and websites, neither CareSource nor its employees or other affiliated individuals have the ability to monitor and moderate all comments at all times and cannot always respond immediately or at all to online requests for information. CareSource may not respond to or see all comments posted on its social platforms and websites as CareSource’s social media websites and platforms are not monitored 24 hours a day, 7 days a week. In addition, CareSource is under no obligation to respond to any content on its social media websites and platforms. The use of CareSource’s social media websites and platforms is at your own risk and provided “AS IS.” We recommend that if you have a serious need that you contact CareSource directly or other appropriate persons, such as the police or emergency medical help (911).
Any and all CareSource social media websites (including, but not limited to, Facebook, Twitter, LinkedIn, Pinterest, YouTube, Google+, Instagram, etc.) may be monitored by CareSource. CareSource reserves the right to monitor and/or terminate your access to any CareSource social media website or platform at any time, without notice and for any reason in its sole discretion. CareSource may edit or remove any materials or posts in its sole discretion at any time. You understand and agree that CareSource may disclose your communications and activities with CareSource in response to lawful requests by governmental (including judicial) authorities.
Please be aware that once you post something online, there is potential for numerous individuals to read your words, even years from now. You are responsible for the content you post to CareSource’s social media websites and platforms. Therefore, we suggest that you exercise caution when posting on any social media websites. Your posts and user content must adhere to the following requirements and cannot:
Contain any third-party material (including any intellectual property, confidential, and/or proprietary information), including, but not limited to, logos, drawings, tattoos, photographs, pictures, sculptures, paintings and other images or works of art, literary works, phrases, sound recordings, videos, trademarks, trade secrets or other items (collectively, “Third Party Materials”) without the explicit prior written permission to use any such Third Party Materials;
Be sexually explicit; graphically, gratuitously, or unnecessarily violent; defamatory or derogatory of any ethnic, racial, gender, religious, professional, or age group; pornographic; or contain nudity;
Contain materials embodying the names, likenesses, photographs, or other indicia identifying any person, living or dead, without explicit prior written permission;
Contain private information about yourself or any other individual, including, but not limited to, information related to the health of the individual, financial information about the individual, or any identification or account numbers related to the individual, with or without their permission or consent;
Be in violation of any law, federal or state, or depict any materials or images that are in violation of any law, federal or state;
Contain software viruses or any other computer code, files, or programs designed to interrupt, destroy, or limit the functionality of any computer software, hardware, or telecommunications equipment; or
Contain any advertising, promotional materials, “junk mail,” “spam,” “chain letters,” “pyramid schemes,” or promote illegal activity and/or illegal contests, sweepstakes, gambling, including any online casino, sports books, bingo or poker, or any other form of solicitation.
The privacy of our members is of the utmost importance. You acknowledge that you assume all responsibility related to the security, privacy and risks inherent in sending any content over the Internet. We request that all followers, visitors, and/or users of any social media websites avoid posting any personally identifiable health information (including, but not limited to, name, location/address, telephone number, member ID, personal medical information, financial information, Social Security number, etc.) on any social media website. If you are a healthcare provider or a covered entity under federal HIPAA regulations, you are prohibited from posting any content that is Protected Health Information, including member images. All users are prohibited from posting personal health information related to individuals other than themselves or their dependents.
CareSource will never ask you for personally identifiable health information on any social media websites we manage. However, we may need additional information from you in order to assist you properly so we may ask you to contact us at questions@caresource.com or servicedelivery@caresource.com. Such additional information will be routed to the appropriate person(s) or department(s) for further handling.
Please remember that information posted on any of our social media websites and platforms is for general informational purposes only and should not be considered medical advice and should not replace a consultation with your health care professional. Always consult an appropriate health care professional for your specific needs. If you are experiencing a medical emergency, then call 9-1-1 or your local emergency number. If you are having thoughts of harming yourself, please call the National Suicide Prevention Hotline at 800-273-8255. Some treatments or plan benefits mentioned on social media formats may not be covered by your health plan. Please refer to your benefit plan documents for information about coverage.
All links to external websites found linked from CareSource social media websites and platforms are provided as a service and convenience to readers. We make no representation or warranty concerning the content, quality, timeliness, safety or suitability of their contents, nor are we liable for the content or availability of external websites. CareSource make no endorsement, expressed or implied, to any hyperlinks or website, and as such are not responsible for the content of external websites. CareSource Control or guarantee the accuracy, relevance, timeliness or completeness of information contained on a linked website or hyperlink. Thus, the content is provided “AS IS.”
If another party makes a claim against CareSource that is related to the comments or third-party material that you submit or post to CareSource’s social media websites and platforms, you agree to indemnify and hold CareSource, its affiliates, officers, agents, employees, partners and harmless from those claims, demands and any all damages that may result.
No communication to CareSource through this social media website or platforms shall be deemed to constitute legal or official notice for any purpose.
Please note that this disclaimer and policy applies to all of our social media presences (Facebook, Twitter, LinkedIn, Pinterest, YouTube, Google+, Instagram, etc.). CareSource reserves the right to make adjustments to this policy as needed and without notice.
Other terms and conditions apply, including the (1) CareSource Website Terms of Use and Privacy Policy, and (2) CareSource Social Media and Community Terms of Use.
Please see CareSource Website Terms of Use and Privacy Policy: https://www.caresource.com/about-us/corporate-information/terms-and-conditions/
Please see CareSource Social Media and Community Terms of Use: https://www.caresource.com/about-us/legal/social-media-and-community-terms-of-use/
Please ensure you read the privacy statements for Facebook, Twitter, LinkedIn, Pinterest, YouTube, Google+, Instagram and all other social media websites and platforms for additional information on what information is collected and used by the social media websites and platforms.
Contact Us
If you have any questions about this website, please contact us at:
CareSource
PO Box 8738
Dayton, Ohio 45401-8738
(937) 224-3300
An Expert-Level Legal Analysis of the CareSource Terms and Conditions
Executive Summary: Key Findings and High-Level Risk Assessment
The CareSource Terms of Use (T&Cs) constitute a meticulously drafted legal document, serving its primary purpose of shielding the company from liability and establishing a clear, enforceable contractual framework. The T&Cs leverage standard industry clauses to limit risk and define the legal relationship between CareSource and its users. The document's legal framework is generally sound and effective.
The T&Cs demonstrate significant legal strengths, particularly in their use of multiple disclaimers concerning professional advice, as well as their robust disclaimers of warranties and limitations of liability. Furthermore, the establishment of a dispute resolution framework, anchored by a governing law and forum selection clause, provides a "home court advantage" that significantly benefits the company in potential litigation. The explicit, though brief, acknowledgement of HIPAA compliance for secure services signals an understanding of key regulatory obligations in the healthcare sector.1
Despite its strengths, the document contains subtle vulnerabilities and latent risks. The T&Cs create a bifurcated privacy regime that may cause confusion for users, as data collected on the public-facing site is handled differently from protected health information (PHI) on the secure site. While the T&Cs claim HIPAA compliance for the secure site, the lack of a clear, user-friendly mechanism to opt out of data sharing, as recommended by the California Attorney General, presents a notable weakness.2 The limitation of liability clause, while likely enforceable under Ohio law, could face legal challenges given CareSource's quasi-public role as a health services provider and the potential for public policy concerns. Finally, the extremely broad, perpetual, and irrevocable license for User-Generated Content (UGC) is a point of concern. This clause, combined with a broad user indemnification provision, creates a significant imbalance of power and carries potential legal and reputational risks for the company if a user's content is misused in a manner that offends the creator or is perceived as exploitative.1
This analysis will conclude with specific recommendations to enhance legal clarity and mitigate identified risks. These recommendations include strengthening privacy notices, clarifying the scope of third-party data sharing, and refining the language around UGC usage rights to align with evolving public expectations and industry best practices.
Introduction
Purpose and Scope of Legal Analysis
The purpose of this report is to provide an exhaustive, expert-level legal analysis of the CareSource website Terms of Use. The analysis evaluates the document's legal validity, enforceability, and overall compliance with relevant legal and regulatory frameworks. The objective is to identify both the legal strengths and potential vulnerabilities within the T&Cs, providing a nuanced assessment of the risks they mitigate and the latent risks they may introduce.
Overview of CareSource
CareSource is an organization operating within the highly regulated healthcare sector. As a health services provider, it is subject to a complex web of legal requirements that are more stringent than those of a typical commercial enterprise. The company's functions include providing health plans and managing services for members.4 This operational context is critical to understanding the legal obligations and the specific language used in its T&Cs. The nature of its business places a high premium on data privacy, security, and the clear communication of its legal responsibilities to its users.
Identification of Governing Legal Frameworks
The legal analysis is grounded in a multi-layered framework. The primary governing principles are those of general U.S. contract law. As expressly stated in the T&Cs, the contract is governed by the laws of the State of Ohio.1 This is a crucial element, as the enforceability of various clauses—such as the limitation of liability and forum selection—will be determined by Ohio's specific statutes and judicial precedents.5 Additionally, given CareSource's role in healthcare, the analysis must consider federal regulations, most notably the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules.9 The Federal Trade Commission (FTC) also provides guidance on health-related privacy and security, which is relevant to any entity in this space.16
Part I: Data Privacy and Healthcare Information Governance
The Bifurcated Privacy Landscape
The CareSource Terms of Use establish a clearly bifurcated approach to data privacy, distinguishing between information collected on the public-facing website and data handled through its secure, password-protected services. The T&Cs state that the website collects "personally identifiable data" and "usage data" from all users.1 However, the document contains an explicit and crucial warning that users should not use the public website to communicate confidential information, such as their Social Security number or member number, but instead use secure web forms, phone numbers, or mailing addresses for such communication.1
This distinction is a legally astute strategy. By creating separate domains for different types of data, CareSource can apply different legal and security standards as required. The T&Cs state that "the confidentiality of individually identifiable health information entered via our secure website services is protected by federal and state law," and that CareSource is "compliant with HIPAA privacy and security requirements" for these services.1 This effectively signals to users that while the general website may not fall under the strictures of HIPAA, the secure services are held to that standard. This approach prevents the entire website from being subject to the full weight of HIPAA regulations, which would be unnecessary for general marketing or informational pages.10
Analysis of HIPAA Compliance and the Privacy Rule
The T&Cs' claim of HIPAA compliance for secure services is foundational to the company's legal posture. The Privacy Rule mandates a set of national standards for the protection of "protected health information" (PHI).9 PHI is a specific subset of "personally identifiable information" (PII) that relates to an individual's past, present, or future health, the provision of health care, or payment for health care.9 PII, conversely, is a broader term that can distinguish or trace an individual's identity, but is not necessarily health-related.18
The T&Cs do not explicitly define PHI or PII, but the distinction is implicitly made through the warnings and the separation of services. This subtlety demonstrates a nuanced understanding of data handling. The T&Cs and the accompanying HIPAA Privacy Practices pages fulfill key requirements of the HIPAA Privacy Rule.20 These documents must prominently display a Notice of Privacy Practices 10 and have an accessible privacy policy that details how data is used and protected.2 The T&Cs meet this standard by linking to or embedding clauses about the company's privacy practices.1
In addition to the Privacy Rule, the HIPAA Security Rule requires covered entities to implement appropriate administrative, physical, and technical safeguards to protect electronic PHI (ePHI).14 The T&Cs state that physical, electronic, and managerial safeguards are in place.1 While this is a high-level summary, the existence of secure web services and the mention of using HTTPS for transactions indicate a focus on technical safeguards required to protect data in transit.11 This demonstrates a foundational understanding of the Security Rule's flexible approach, which focuses more on
what needs to be done rather than prescribing specific technologies.14
Third-Party Data Sharing: An Area of Potential Vulnerability
The CareSource T&Cs address third-party data sharing by stating that the company does not sell, trade, or share personal information without a user's consent, but that it may share statistical data with business partners.1 More critically, it notes that personal data may be shared with "vendors, partners or contractors" who perform services, with the caveat that these third parties "may not share or resell this information".1
This clause highlights a potential vulnerability. While it aligns with the legal requirement for covered entities to have contracts with "business associates" who have access to PHI 9, the language used in the T&Cs is not as strong as the legal mandate. Business Associate Agreements (BAAs) must explicitly stipulate how the data will be used and what safeguards are in place.25 The T&Cs' permissive language ("may not share or resell") is weaker than a clear, contractual prohibition. This subtle linguistic difference could be interpreted as a lack of strict obligation, creating a legal exposure.
The clause's permissive nature places the onus on the user to trust that CareSource has conducted proper due diligence and has robust BAAs in place with all its vendors.25 While sharing data with vendors for services is a standard business practice, a more transparent approach, as recommended by the California Attorney General, would detail the categories of third parties to whom data is disclosed and sold.2 The T&Cs' general statement about sharing data with vendors for "services" is a gray area that lacks the clarity and transparency that modern privacy principles and regulations increasingly require.26
Part II: Disclaimers, Warranties, and Limitations of Liability
Professional Advice Disclaimers: A Proactive Defense
CareSource employs a series of disclaimers to proactively limit its legal liability. These include a "No Personal Advice" clause, a statement that the website is "Not a Substitute for Professional Health Care or Advice," and a "No Legal Advice" clause.1 The purpose of these statements is to manage user expectations and clarify that the information provided is for general educational purposes only and does not constitute a professional relationship, whether with a doctor or an attorney.30 These clauses are critically important for a healthcare entity to prevent the accidental formation of an attorney-client or doctor-patient relationship, which would trigger additional legal duties and liabilities.32 The T&Cs explicitly state that "No doctor-patient relationship is established between CareSource and you" and that "No attorney-client relationship is established".1 Such clauses are generally enforceable, provided they are clear and conspicuous.32
Warranty Disclaimers and As-Is Provisions
The T&Cs contain a standard and generally enforceable provision that all content is provided "'as is,' without warranty of any kind, either express or implied".23 The clause goes on to explicitly disclaim the key implied warranties of merchantability, fitness for a particular purpose, and non-infringement.23 This provision is a staple of online contracts and seeks to limit the company's guarantees regarding the quality or performance of the website's content and services. By expressly denying these implied warranties, CareSource significantly reduces its exposure to claims related to product or service failures, which is a key legal strength of the T&Cs.36
Limitation of Liability: Enforceability under Ohio Law
The limitation of liability clause is a central element of the T&Cs. It states that CareSource "will not be liable for any damages" if the website is unavailable or if a user's computer is infected with a virus.23 It further limits liability for "any special, indirect, incidental or consequential damages" regardless of the legal theory, explicitly including "contract, negligence, tort, strict liability or any other theory".23
The enforceability of such a clause is determined by the laws of Ohio, which generally uphold these provisions. Ohio courts "routinely enforce" negligence waivers and liability limitations as long as the language is "clear and unequivocal" and clearly states the liability being released.5 The CareSource clause is broad but its explicit mention of "negligence" and the specific types of excluded damages strengthens its enforceability.37
However, this clause presents a significant area of latent legal risk. Ohio law does not enforce waivers that raise "important public policy concerns".5 This public policy test considers whether the goods or services are "necessary for a person's living needs" and if the supplier "assumes a quasi-public function".5 As a health services provider, CareSource's function is arguably a public one, and the services it facilitates are critical to individuals' living needs.4 A plaintiff's attorney could argue that a site providing information about medical products and services is so intertwined with a quasi-public function that a broad limitation of liability is against public policy. While the T&Cs attempt to mitigate this by distinguishing their general information from professional advice, this remains an area of potential legal challenge. The clause is likely to be upheld in a commercial dispute, but it may be more strictly construed in a case brought by an individual consumer, who may have less bargaining power.5
The following table provides a detailed analysis of the enforceability of these clauses against Ohio legal standards.
T&C Clause | Ohio Legal Standard | Assessment |
Limitation of Liability for Negligence 23 | Must use "clear and unequivocal" language and explicitly state what liability is being released.5 | Likely Compliant: The T&Cs explicitly mention "negligence" and other legal theories. While broad, this clarity is a significant factor in enforceability under Ohio law. A court is more likely to uphold a clause that specifically mentions negligence than one that uses general terms like "any loss".38 |
Exclusion of Consequential and Other Damages 23 | Exclusions must be "limited in scope" and not waive all damages or claims.40 | Compliant: The clause is specific, stating that it limits "special, indirect, incidental or consequential damages" but does not purport to waive all damages. This precision makes the clause more likely to be upheld than a blanket exclusion.40 |
"Unconscionability" and Public Policy 6 | A contract may be unenforceable if it is "unconscionable" or "violates public policy".5 Public policy concerns arise if the service is a "necessary for a person's living needs" or if the supplier has a "quasi-public function".5 | At-Risk: This is the primary legal vulnerability. CareSource's role as a health services provider places it in a domain where public policy concerns are heightened. A plaintiff could argue that the broad liability waiver is unconscionable in a consumer context, which may lead a court to refuse to enforce the clause or limit its application.6 |
Part III: User Content and Intellectual Property Rights
The Perpetual UGC License: A Corporate Power Play
The CareSource T&Cs contain a provision that is a standard, yet highly asymmetric, part of modern online contracts. The T&Cs state that any content a user submits to its social media platforms "may be used by CareSource and its affiliates permanently and irrevocably for business purposes, including internal and external marketing, without restriction".1 This clause grants CareSource a perpetual, royalty-free, and irrevocable license to use any user-generated content (UGC).3
While the user retains their copyright in the content they post, this clause effectively grants CareSource the right to use that content for commercial purposes without additional compensation.42 This is a common practice among social media and digital platforms to secure the right to use user-created material.42 The T&Cs also warn users that by posting, they grant this license, and that if they do not want their information used in this manner, they should not post on these platforms.1 This "take it or leave it" approach reflects the inherent power imbalance between the platform and the user.42
User Indemnification: Shifting Liability to the User
A complementary clause in the T&Cs states that "Users are responsible for their content" and must adhere to strict requirements, including prohibitions on posting intellectual property without permission, illegal content, or defamatory material.1 This clause is a form of indemnification, which is designed to protect CareSource from legal claims that arise from a user's actions or content. For example, if a user posts a photo that infringes on a third party's copyright, this clause attempts to make the user legally and financially responsible for any damages or legal fees incurred by CareSource.3
Latent Risks of the UGC and Indemnification Clauses
While these clauses are standard practice, they are not without risk. The broad, perpetual license creates a significant power imbalance that can lead to public backlash and reputational damage.41 If CareSource were to use a user's content for a high-profile marketing campaign, and the user had not anticipated such a use, a public dispute could arise even if the T&Cs provide a legal shield. This is a business risk that a broad, company-centric legal clause cannot fully mitigate.41 The T&Cs' claim of a perpetual license may also be seen as an attempt to avoid paying for expensive "in-perpetuity" rights, which are often priced at a premium.3
The user indemnification clause, while legally sound in its intent, may not be fully enforceable in all circumstances.42 If CareSource were to use a user's content in a way that contributes to the harm—for example, by using a photo for a campaign that a third party subsequently sues over—a court may not fully uphold the indemnification clause, particularly if CareSource's own actions are deemed to have contributed to the legal claim. These clauses, while providing a legal framework, shift the burden of risk almost entirely to the user, a strategy that can backfire in the court of public opinion and potentially in court.
Part IV: Contractual Framework and Dispute Resolution
Governing Law and Choice of Forum
The T&Cs contain two of the most critical clauses in any online contract: the governing law and the forum selection clauses. The document explicitly states that it is "governed by and construed in accordance with the laws of the State of Ohio".1 It further mandates that users "consent to the jurisdiction of the federal and state courts in Montgomery County, Ohio, and agree to accept service of process by mail and hereby waive any and all jurisdictional and venue defenses otherwise available".1
The legal purpose of these clauses is to provide legal certainty and predictability.44 By pre-selecting the legal framework and location for dispute resolution, CareSource prevents costly and time-consuming "battles" over which law applies and where a lawsuit should be filed.45 This provides the company with a "home court advantage," allowing it to litigate disputes in a familiar jurisdiction with known legal precedents.44
Enforceability of the Forum Selection Clause
The enforceability of the forum selection clause is supported by strong legal precedent. U.S. Supreme Court cases have established that these clauses are generally presumed to be enforceable unless a party can make a "strong showing that it should be set aside".47 The
Atlantic Marine case clarified that such clauses should be given "controlling weight in all but the most exceptional cases".47
Ohio law further bolsters this position. The Ohio Revised Code explicitly states that a court will not stay or dismiss a civil action on the basis of an inconvenient forum if the parties have agreed to jurisdiction in the state.8 This makes the CareSource forum selection clause highly likely to be upheld in an Ohio court, even if it is a significant inconvenience for an out-of-state user.
The Strategic Barrier to Litigation
The combination of a governing law clause and a forum selection clause creates a formidable strategic barrier for a user. An out-of-state user who wishes to sue CareSource would be forced to hire local counsel and travel to Montgomery County, Ohio, a significant logistical and financial burden that can effectively deter legitimate claims.45 This is a prime example of a "David and Goliath" scenario, where the contract's terms protect the more powerful entity.42 The user must not only sue in Ohio, but also demonstrate that forcing them to do so constitutes an "exceptional case," a high bar to clear.47
The legal position of the T&Cs is further reinforced by Ohio's "long-arm" statute.48 This statute allows an Ohio court to exercise jurisdiction over out-of-state defendants who have "minimum contacts" with the state, such as by "transacting any business in this state" or "contracting to supply services or goods in this state".48 This provides CareSource with a dual-sided legal mechanism. The T&Cs can force a user to sue in Ohio, and CareSource can use the long-arm statute to sue an out-of-state user in Ohio if that user violates the T&Cs, for example, by posting defamatory content.48
Synthesis and Overall Risk Assessment
The CareSource T&Cs are a strong and well-crafted legal document that provides significant protection for the company. The document's key legal strengths lie in its proactive use of professional advice and warranty disclaimers, its robust limitation of liability clause, and a meticulously structured dispute resolution framework. The bifurcation of the website's privacy regime into HIPAA-protected and non-HIPAA-protected zones is a sound strategy that aligns with legal and business requirements.
However, the analysis also reveals several legal vulnerabilities and gaps. The broad third-party data sharing clause and the lack of a clear opt-out mechanism for data selling or sharing, as recommended by California's Attorney General, present a potential legal and reputational risk.1 The limitation of liability clause, while likely enforceable, could be challenged on public policy grounds given CareSource's quasi-public role as a health services provider in Ohio.5 The perpetual UGC license and the associated user indemnification clause, while standard industry practice, create a significant power imbalance that could lead to public disputes and, in some cases, may not be fully enforceable in court.1
The following table provides a matrix of identified legal risks, categorizing them by severity and potential impact to help guide future legal and business decisions.
Identified Legal Risk | Severity | Potential Impact |
Broad Third-Party Data Sharing | Medium to Low | User and regulatory complaints, reputational damage, and potential legal action if data is misused or sold.2 |
Public Policy Challenge to Liability Clause | Medium | Potential for the clause to be partially or fully invalidated in a court, leading to financial damages from a negligence claim.5 |
Misuse of User-Generated Content | Medium to High | Reputational damage, public backlash, and potential legal claims for copyright infringement or violation of publicity rights.3 |
Enforcement of Indemnification Clause | Medium | A court may not fully uphold the clause, leaving CareSource exposed to liability for a user's content.42 |
Lack of Specific Opt-Out Mechanism | Medium | Non-compliance with evolving state privacy laws and potential for regulatory fines and litigation.2 |
Recommendations for Enhanced Legal Posture
Based on this analysis, the following recommendations are proposed to strengthen the CareSource Terms of Use and mitigate identified risks:
Data Privacy: To enhance transparency and legal compliance, CareSource should add a clear and conspicuous "Do Not Sell or Share My Personal Information" link or a similar opt-out mechanism on its website.2 The T&Cs should be updated to more clearly define the categories of vendors and partners with whom data is shared. While the current language is permissive, a more explicit description of these third parties would increase transparency and align with privacy best practices.22
Limitation of Liability: To protect against a public policy challenge, CareSource should consider adding a severability clause that explicitly states the intention for the remainder of the contract to be enforceable if a specific clause is deemed unconscionable. This would signal a willingness to adapt the contract if a portion is deemed unenforceable without invalidating the entire agreement.
User-Generated Content: The UGC license clause should be refined to be more specific about the types of content and uses that fall under the "irrevocable" license. While a broad license is beneficial, a more tailored approach can manage user expectations and reduce the risk of public disputes.
General Improvements: To further fortify the legal posture, CareSource should ensure that all disclaimers and waivers are conspicuous, using clear and unambiguous language, preferably with bolding or other formatting to draw attention to them.38 Regular review and updates of the T&Cs are critical to keeping pace with the rapidly evolving landscape of state privacy laws.22
Conclusion
The CareSource Terms of Use are a robust, company-centric legal document that successfully navigates the complex regulatory environment of the digital health sector. The document's strengths, including its proactive use of disclaimers and its carefully constructed dispute resolution framework, provide a solid foundation for mitigating legal risk. However, a deeper analysis reveals subtle vulnerabilities in its approach to data sharing, limitation of liability, and user-generated content. By implementing the recommendations outlined in this report, CareSource can move beyond a standard legal posture to one that is more transparent, resilient, and aligned with modern consumer expectations, thereby further safeguarding its legal standing and brand reputation.
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