MagicJack's EULA says it will spy on you and force you into arbitration
MagicJack, a cheapie $20-a-year internet phone service, comes with a shriveled and shaking devil EULA.
"You also understand and agree that use of the magicJack device and Software will include advertisements and that these advertisements are necessary for the magicJack device to work ... Our computers may analyze the phone numbers you call in order to improve the relevance of the ads"...
Any claims, legal proceeding or litigation arising in connection with the magicJack device or Software will be resolved by binding arbitration ... in Palm Beach, Florida."
Oh God, not Palm Beach!
In short, it not only has one agree to ads with its paid-for system, but claims that the ads are necessary for it to work. It will also snoop on your calls to target ads more accurately, and has you sign away your legal right to take it to court if it defrauds or otherwise harms you. Delightful.
Neither the EULA itself, nor any other privacy or legal information, can be easily found at its homepage. It's not even provided at the point of sale, where one enters credit card info, email and street addresses as such, so as to gain access to the service and have your MagicJack dongle delivered. I found the EULA's URL through Google.
It gets sexier. When you access MajicJack's instant web help page, a bizarre series of "compatibility tests" take place first, reporting lies like "Your MagicJack is functioning properly" even if you don't have one installed.
Even the "look how many people came for a free trial" counter on the homepage is a fake, a javascript applet that increments itself automatically:
// the interval (ms) between new visitors
var interval = Math.round(86400000/perday);
As if targeted advertising, systematic privacy invasion and the signing away of your legal rights wasn't evil enough!
[Thanks, Joseph!]

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here in Germany the complete EULA would be useless....because it is not conform with other LAWs.....
and who would like to use that prod?
NO ONE but it'll do harm anyway because some dumheads will buy it...for SURE
It really should be called Magic Hijack.
When I heard about it, I thought it sounded too good to be true.
Glad to be confirmed.
But dude, it's Magic! If it were based in reality, then it wouldn't be so magical, now would it?
...and if it gets a favorable PC-Magazine review it must be a good product! ;)
The Wikipedia page for Dan Borislow, the inventor, reads more like a press release to promote the MagicJack.
The really interesting part to me is how this company got the amazing "news" coverage that is shown on their home page.
Why would a guy as rich as Borislow put together a company that has a web site that makes it look like the Ronco of the internet age?
I'm trying to imagine them trying to enforce their eula in court if it's not readily accessable to the user. I think most judges would smack them silly for trying to enforce a pseudo-contract that the user has never even seen.
...I saw the infomercial and wondered how they made the VOIP to telco service only $19.95, but I couldn't figure out the catch from the ad. Now it begins to make sense. Too bad, too. Because the idea behind USB/analog phone adaptor is a sound one for many users.
@#1 There are a helluvalot of "dumheads" out there who already bought and are using this device. If you need help spotting them, there's even an Unofficial magicJack Forum and last October an Engadget article seemed to paint it in a favorable light. They're all in for a surprise.
d nt knw wh ll y mrns r tht thnk jst bcs cmpny rqrs n d n thr prdct t wrk s bd bt ts nt. s ths prdct nd m vry stsfd. Cll m "dmhd" f y wnt bt wll hv th lst lgh. m wll t bt tht mst f yr PC's r t p wth spywr mr srs tht wht MY b n ths prdct. Frthr mr n mght sk wht r y s frd f, wht d y hv t hd? hv nthng t hd nd m nt pyng $600.00 dllrs yr jst t mk fw clls. n shrt, y gys nd t gt lf.
@Frankie:
Bwuahaahahahahahahahahahahahaha.
You deserve your lack of privacy.
Note that whenever someone runs a piece about this thing, the comments tend to get astroturfed.
@Frankie:
lol
@Frankie
So you're just one of the many that have their computer so infested with crapware, that your internet connection SCREAMS each time you log on. You're letting the WRONG people have your personal information that you have "hiding" inside your computer. They see what you type, they see what you look at, heck, they even know your pet's name all because you agreed to letting them install their crapware and letting them spy on what you do. It's all right there in their TOS and EULA! Better read it.
I don't know about the rest of you, but I like my machine safe and "spy" free. And before you say a word, NO, I don't have a thing to hide! In fact, I'm the one you come to when your computer doesn't "act right when you click on this", or "the screen makes funny colors" when you open IE. Yes, my friend, I'm a security analyst for a Windows Vista website help forum. I'm the one they come to when they need help.
And the first thing I tell them after looking at their HiJackThis logs are...here it comes....wait for it....UNINSTALL all the crapware first, then I'll help you repair it.
End of story!
Rob,
while some comments may be astroturf, I have many friends who are obsessed with this product and had no problem gushing to me about it.
// the interval (ms) between new astroturfers
var interval = Math.round(86400000/perday);
So I have been using the magic jack for about 5 months now. I just recently moved from the US to the Netherlands.
The Magic jack advertising is within the magic jack console itself. Thus far the ads that have been displayed
- MagicFix : Utility to optimize the magicjack
- MagicJack International calling (Self Explanatory)
That is really about it. To tell you the truth I have not had any issues with it that were not self inflicted. (The Fiancee snapped of the USB portion of it.) We wrote to the folks at MJ and they sent us a replacement.
The only real issue I see is if you do not have a fast enough connection or if your computer is under a lot of load.
I have mine setup on my media server at home and bought a 5.8 MHZ phone kit with 3 receivers... I have not had any issues.
Nothing personal, but for $20 a year.... I'll keep on trunking with it. If you want to pay $20 a month for the other voip companies feel free to throw your money away.
P.S. The call quality rocks!!! My parents even bought one.
Daniel S. ,CISSP
The Netherlands
magicJack was founded by a telecom pioneer who brought his last company public and to a $1 Billion+ Market Cap with over 4 million customers. Ad Serving based on various factors is nothing new. Just as you are delivered unique Google Ads based on your search history, magicJack will identify business telephone numbers through an algorithm, like Google, and deliver relevant ads.
So far, there are no ads and this is not the business model if you know telecom at all. If you called Delta Airlines, it may serve you a Southwest ad. This is similar to how Jingle Networks secured 5% of the directory assistance market within two years or when you checkout at the local supermarket and get coupons on back of register receipt also matched to your loyalty card (No EULA or TOS when you buy eggs?!). What is creepy is there is a telephone service being launched that actually "listens in" to your calls by computer and picks out key words than serves you ads on the phone call. (What's next, watching porn online and a Kleenex tissue printing from your computer?) An ad-supported telecom network is NOT magicJack's business model. So much concern for privacy yet the average person is on 27 cameras EVERYDAY - without giving permission. AND, what about the The Patriot Act? (I must have missed Rob's blog on the TOS from George W. and company. The online counter is a little hokey but do you audit the results on American Idol or require documentation on QVC? I have a secret, it's called MARKETING - and it is highly effective and got you all talking. (Heck, Ron Popeil of Ronco fame is a genius! I am sure Dan Borislow at magicJack was proud of the association) So many intellects here, I am sure your advertising and marketing acumen could point magicJack in the right direction to be even more successful. Let's hear your ideas. Oh, magicJack has never ever been accused of malware or spyware. If you read recent news reports, Apply's iPod and similar devices, even digital picture frames, are imported with viruses and spyware. (FACT!) Did you read the TOS and Privacy Policy before you posted your comments? Rob gets your first born. Ha. magicJack is a wonderful product and affords inexpensive high quality calling.
Not to disrespect those who have posted honest praise of this product's genuine utility, but see what I mean about astroturfing? Holy crap.
Sorry if this sounds like Im adding to the astroturfing crowd...but, as a gadget girl and an online junkie, I gotta say my peace to you clunkheads who have posted. There is alot of really ignorant rants around online privacy and whether MJ plans to serve ads to its users -- which they do not, at least not yet anyway. I was wondering if all the crazies who posted before Psyche have any sense of whats fueling the huge growth in online advertising??? The last 5yrs there has been a fundamental shift in the landscaping of the ENTIRE advertising industry-- and which has created enormous market cap value for companies like Google, Yahoo, MSN and the thousands of Online Ad Networks that are developing extremely complex tools to 'target' ads by serving online consumer wiht Ads which are 'relevant' to the consumers interests, behaviors, hobbies and ONLINE navigation...Google rules the internet b/c they track, monitor, oversee, spy,police (call it whatever you want) your EVERY online move...so does Yahoo, MSN and every other search engine firm...and, everytime you visit a website to purchase a product or click on an Ad...this action is tracked, measured, analytically reported and used to build your consumer 'profile...'thats the online world we live in people. Get over it. Embrace it. Take advantage of it. MJ is an inexpensive phone alternative...it works (Ive been a customer since they were in beta-- and use it as my 2nd line...all long-distance calls are with MJ), call quality is better than cell phone, almost as good as landline...so people, get into the 21st century and if your a true Gadget person and if you truly understand how the internet world works (yeah, your online behavior is tracked by MANY companies...) chill out and learn to deal.
MJ is a VoIP phone gadget and the inventors thinking about how to monetize his business, just like Google, Yahoo, MSN and all the rest. Cool gadget, smart ad model. Loud and obnoxious website, cheesy marketing. But who cares. I'm saving $$ and making long distance calls over the internet, which I happen to think is cool.
Guess I did turf it up! LOL
I have been using MJ for about 6 months. It has worked about 95% of the time wihtout problems, but it has had problems. That said I had more problems with Vonage!
Im in the e-commerce industry and got to tell you that SweetSassySmart is right on the money.
Forget MJ, forget google, msn, yahoo, you dont have to go that far. Your ISP is keeping track of everything you do. If you dont believe me, research on a company called Hitwise. Our company recently started using their services and you would not believe the amount of data that gets collected.
Besides, dont you think your cell phone company keeps information about you? they are way more expensive than MJ.
What about your regular phone company? How do you think you get so many unsolicited calls, even if you are in the do not call list? Your phone company is more expensive than MJ.
So we are willing to pay big money to our ISP, cell provider, phone provider, search engines... AND have them analyse all our user patterns, but when it comes to an inexpensive service... then we become apprehensive.... hmmmm
I second SweetSassySmart notion... wake up, everyone and their grandmother are watching you on the web!, So might as well not keep paying high prices while we are at it.
LOOKS FISHY. FIRST THIS POSTING STARTS WITH THE FIRST COMMENT ON TOP WHICHIS BACKWARDS SO EVERYONE CAN SEE THE NEWS VIEW OR OPINION. SECOND IT REALLY SOUNDS LIKE YOU GUYS GOT BURNED, LOST YOUR JOB, OR JUST KOOKS. THE IDEA TO DO THE ADS IS LIKE A GPS TELLING YOU WHAT RESTURANTS ARE IN THE NEIGHBORHOOD YOUR IN. BUT THE HAIT BEHIND THE WORDS SOUNDS LIKE SOME LOST THEIR JOB, OR THINKS THAT SOMEONE TOOK THEIR IDEA. STAY IN EUROPE YOU "DUMBHEADS" THATS WHY WE LEFT THERE HUNDREDS OF YEARS AGO. EUROPE IS FOR WANKERS.
This is getting better and better.
WOW this IS getting better and better. Kookwatch Bravo!!! I applaud you!!
You would make all your friends at the conspiracy club proud.
As far as Europe being for wankers.... Well, when you get your job that you lost back; save up all your little pennies and feel free to come for a visit. It is obvious you know nothing about the rest of the world. So feel free to keep sitting around and complaining about things in your po-dunk town.
I really wanted to become a global professional so I came over here. I am an American and I am former military as well. I understand national pride.... But come on read a book or something.
Books will teach you great things... Like how to spell HAIT without the I and an to put an E on the end (HATE)
Regards,
DanielS (AKA the wanker living in Europe)
P.S. Where do you think your family came from?? I am not talking about the same mother/sister either. I mean originally.
A couple of comments and opinions based on having used one for a month:
- Quality and reliability has been very good
- I haven't seen any major ads on the softphone and it is mostly unobtrusive. Yes, it does get a bit annoying regarding it popping up when you don't want it to.
- I do agree that the website etc. are too much of a shady sounding "As seen on TV" sales pitch. I believe it to be a good product and so far a reasonable company, so I hope they improve their image for their own sake.
- If you apply common sense, they do need to make money somehow, and a lot of people are willing to accept ads in return for cheaper calling.
- As the EULA says, ads are necessary for its function. Its called a business model. If that offends you, don't use it. Don't use Gmail, Google search, etc. and tons of other ad-based internet freebies that you count on, either.
- Since it does get installed on your computer, it may require more than any average user's knowledge regarding keeping the machine adware free. I have not observed any performance issues nor have adaware types of software noticed anything strange.
- As someone who has used VOIP for a few years, and is fairly savvy with computers and telecom, I consider it a great concept and a reasonably well-implemented product. I hope more products in the genre, ad-supported for those who want to save more money, and not, for those who're more bothered by ads.
- If you don't like the policy, not buying it is a good idea. But that does not make it a bad product for everyone.
I don't see any problem with the EULA, I'm glad you pointed out the details. Now I know it's good because the adds are what pay for most of the service. But to you paranoid fools, what do you think any of this has to do with malware? You must hate all the trillions of web pages on the net because they all do the same thing! You never did have the privacy that you apparently thought!
== My Experience ==
I had near ZERO problems with Vonage, but this "magic" think really stinks! You know how they say "plug it in and it's so easy"? Well, even my software engineering skill did not help me since they simply did NOT tell me what I needed to do to get it going when the AutoRun did not work. I just kept trying crazy things for an hour and suddenly it started the registration. The meaning was unclear in registration so I ended up closing it, thinking I must be done. I had dialtone, but DID NOTHING after I dialed. Since there's no help for this, I had no clue that of course it would not work because
1. I would have had to get my local number
2. There's apparently a GUI that has to be running
Anyway, after 3 hours of anger I finally got the message that says something like [this will take a few minutes but it will sure be worth it]! What a load of NONSENSE!
Apparently the big problem is that they shipped me hardware that's OUT OF DATE. I always have to also click around to install "upgrade.exe" before anything works. That's stupid, and completely OPPOSITE of everything they advertised.
So I finally call someone and they can't hear me loud enough. I think it helps though to turn up the microphone vol in the menu.
But stink! The audio is very "crappy", unreliable, and it even takes more bandwidth than vonage which was always crystal clear! Since mj is like $1.50/mo I will keep it in addition to vonage. Afterall, mj cannot even keep my home phone number.
That said, I like this idea if I can get it for less than $15/yr (the 5 yr agreement).
I can answer the strange question of why many are complaining about "privacy". They are addicted to certain sexual things which involve phones and Internet. They feel uneasy knowing that someone can advertise porn to them on the picture, just because they called those 900 numbers :-O