Validity and Effects of Restrictive Clauses on the Use of User Data in Digital Services Contracts

Abstract

Digital transformation has turned digital services contracts into one of the most prevalent legal instruments governing relationships between service providers and users. In these contracts, users typically provide their personal data as consideration to service providers. One of the fundamental challenges in this field is the inclusion of restrictive clauses that limit users’ rights with respect to the use, access, transfer, or deletion of personal data. Employing a descriptive–analytical and comparative methodology, this study examines the validity and effects of such clauses in Iranian law and compares them with the approaches adopted in the European Union and the United States. The findings indicate that, despite users’ apparent acceptance, restrictive clauses face serious challenges to their validity, as information asymmetry, the complexity of legal language, and the absence of genuine opportunities for negotiation undermine the realization of informed consent. Moreover, these clauses have extensive effects on users’ rights, including restrictions on data access and portability, and may lead to reduced competition in digital markets. The results further show that Iran lacks a comprehensive framework for personal data protection, making it necessary to enact comprehensive legislation in this area, amend consumer protection law, and establish transparency requirements in terms of use.