Turning Terms & Conditions into a Decision Tool
SGS General Terms and Conditions of Service.
This is an example of converting a legal document into a practical business tool.
The original GTS are designed to protect the company from clients’ undesirable actions. The language prioritises precision over usability. As a result, the tone ranges from purely formal to somewhat hostile at times. The language is not easy to understand (see the metrics at the end of the revised document).
The main issue with the document is that, although it safeguards the company, it does not provide the client with clear guidance on how to interact with it. It is a common situation that reflects a typical organisational priority: legal risk mitigation takes precedence over user clarity.
Results are costly.
- Clients may abandon the relationship rather than resolve a problem => revenue loss.
- Poor understanding => higher claim frequency. Profit loss.
- Difficult language => more time needed to strike a deal (attorney involved) => longer sales cycle => NWC suffers.
The objective of this exercise was to improve usability without reducing legal protection.
The following principles applied.
- Hostile or unclear language does not reduce risk. Instead, it provokes resistance.
- Write in simple language! Use shorter sentences, fewer passive constructions, and simpler vocabulary. Always verify readability.
- Information has to be structured around decisions. The use of lists and bullet points helps clients understand options and their consequences.
- Responsibilities must be explicit. This reduces disputes.
- Improve clarity without compromising legal meaning. Greater clarity increases compliance.
- Use real-world client scenarios: before service, during execution, and in case of issues.
Once rewritten in plain and friendly language, it provides obvious pros:
- Risk reduction: fewer misunderstandings => fewer legal disputes => fewer losses.
- Enhanced trust/brand: plain, or better still, friendly language positions the company as transparent and client-focused => competitive edge in TIC[1], where trust is everything => long-term marketing gains.
- Clients are more likely to follow rules, yielding obvious transactional and financial benefits.
The revised version improves compliance by making obligations and limits clear to non-lawyers without reducing SGS’s legal protection. It is also friendlier, reducing tensions and improving relations. Comparative word count and readability scores are given at the end of the document.
The links below provide access to the original document and a side-by-side comparison of the original and revised versions.
[1] Testing, Inspection and Certification, a common acronym for the industry