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Terms of Service

Last updated July 15, 2026

Status: This document is pending final review by qualified legal counsel. By using the Service, you agree to the current version. Material updates will be posted here.

TERMS OF SERVICE (DRAFT)

Status: DRAFT — last updated July 15, 2026. Not legal advice. Drafted for review by qualified counsel before public use.

These Terms of Service ("Terms") govern your access to and use of the Good Night Tales service (the "Service") operated by Signal Loom AI ("we," "us," or "our"). By accessing or using the Service, you agree to be bound by these Terms.

1. Eligibility and Authority

1.1 Parent/guardian requirement

The Service is intended for use by adults (parents, legal guardians, or other authorized adults) on behalf of minor children. By using the Service, you represent and warrant that:

1.2 Prohibited users

You may not use the Service if:

2. Account Registration and Use

2.1 Account creation

To use certain features of the Service, you must create an account. When creating an account, you agree to:

2.2 Child profiles

You may create profiles for children under your care. You agree that:

2.3 Account security

You are responsible for maintaining the confidentiality of your account credentials. Notify us immediately at security@signalloomai.com if you suspect any unauthorized access.

3. Subscriptions and Payments

3.1 Subscription tiers

The Service may offer various subscription tiers (e.g., Free Week, Continue, Family, National). Specific features, pricing, and terms are described on our pricing page and at the time of purchase.

3.2 Free trial

Some subscriptions may include a free trial period (e.g., 7 free stories for new users). At the end of the free trial, your subscription may automatically continue at the listed price unless you cancel.

3.3 Billing

By providing a payment method, you authorize us to charge your payment method for all fees and taxes. Subscription fees are billed in advance (monthly or annually, depending on your plan).

3.4 Cancellation

You may cancel your subscription at any time through your account settings. Cancellation takes effect at the end of your current billing period. No refunds are provided for partial billing periods, except as required by law.

3.5 Price changes

We may change subscription prices with at least 30 days' notice. Continued use after the price change takes effect constitutes acceptance of the new price.

3.6 Taxes

Prices do not include applicable taxes. You are responsible for any taxes associated with your use of the Service.

4. Content and Intellectual Property

4.1 Your content

You retain all rights to the information you provide to the Service, including child profiles and any personal content you submit.

4.2 Generated content

The Service uses artificial intelligence to generate stories, audio, and cover art. Our current AI providers are OpenAI (story text, cover art) and ElevenLabs (voice synthesis). AI-generated content may contain errors or inaccuracies. You acknowledge that the Service is provided "as is" and that AI-generated content may not be unique to your child — it may be similar to content generated for other users. Subject to payment of applicable fees, you may use this generated content for personal, non-commercial purposes.

Stories, audio, and cover art generated by the Service for your child are generated specifically for you. Subject to payment of applicable fees, you may use this generated content for personal, non-commercial purposes.

4.3 Our intellectual property

The Service, including its design, code, branding, and underlying AI models, is owned by Signal Loom AI and protected by intellectual property laws. You may not:

4.4 Feedback

If you provide feedback or suggestions, we may use them without restriction or compensation.

5. Acceptable Use

You agree NOT to:

6. Privacy and Children's Safety

Your privacy and the privacy of your child are important to us. Our collection, use, and sharing of personal information (including children's information) is governed by our Privacy Policy (linked at goodnighttales.io/privacy.html). By using the Service, you agree to the Privacy Policy.

Key commitments regarding children:

7. AI-Generated Content

7.1 Nature of generated content

The Service uses artificial intelligence to generate personalized stories. AI-generated content may:

7.2 No professional advice

Generated content is for entertainment and educational purposes only. It is not a substitute for professional advice (medical, psychological, educational, legal, or otherwise).

7.3 Content review

We employ input and output filtering to reduce the likelihood of harmful or inappropriate content. However, we cannot guarantee that all generated content will be appropriate for your child.

8. Disclaimers and Limitation of Liability

8.1 Service provided "as is"

THE SERVICE IS PROVIDED "AS IS" AND "AS AVAILABLE" WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO:

8.2 Limitation of liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW, SIGNAL LOOM AI SHALL NOT BE LIABLE FOR:

In no event shall our total liability exceed the amount you paid us in the 12 months preceding the claim, or $100, whichever is greater.

8.3 Exceptions

Some jurisdictions do not allow the limitation of certain damages. In such jurisdictions, our liability is limited to the maximum extent permitted by law.

9. Indemnification

You agree to indemnify, defend, and hold harmless Signal Loom AI and its officers, directors, employees, and agents from any claims, damages, losses, or expenses (including reasonable attorneys' fees) arising from:

10. Termination

10.1 Termination by you

You may terminate your account at any time through your account settings. Upon termination:

10.2 Termination by us

We may suspend or terminate your account if:

10.3 Effect of termination

Upon termination, all rights granted to you under these Terms cease. Sections that by their nature should survive (e.g., disclaimers, limitations of liability, indemnification) will survive.

11. Dispute Resolution

11.1 Informal resolution

Before filing a claim, you agree to contact us at legal@signalloomai.com to attempt to resolve the dispute informally. We will attempt to resolve the dispute by contacting you via email.

11.2 Arbitration

If the dispute is not resolved within 30 days, any unresolved dispute will be resolved by binding arbitration, except:

11.3 Class action waiver

To the extent permitted by law, you agree to resolve disputes on an individual basis and waive the right to participate in class actions or class arbitrations.

11.4 Governing law

These Terms are governed by the laws of the State of [State], without regard to conflict of law principles.

12. Changes to These Terms

We may update these Terms from time to time. Material changes will be communicated via:

Your continued use of the Service after changes take effect constitutes acceptance of the updated Terms. If you do not agree to updated Terms, you must stop using the Service.

13. Miscellaneous

13.1 Entire agreement

These Terms (including the Privacy Policy) constitute the entire agreement between you and us regarding the Service.

13.2 Severability

If any provision of these Terms is held invalid, the remaining provisions remain in effect.

13.3 Waiver

Our failure to enforce any right or provision does not constitute a waiver of that right.

13.4 Assignment

You may not assign these Terms without our written consent. We may assign these Terms in connection with a merger, acquisition, or sale of assets.

13.5 No agency

These Terms do not create any agency, partnership, or employment relationship.

14. Contact

If you have questions about these Terms:

Signal Loom AI

Email: legal@signalloomai.com

Mail: [address to be added]

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DRAFT NOTES FOR ATTORNEY:

This draft was prepared by an AI assistant (Aster) as a starting point for the founder's counsel to review and customize. It is based on standard SaaS Terms of Service structures and includes provisions specific to:

Specific items requiring attorney review and customization:

1. Governing law and jurisdiction (Section 11.4) — needs to be specified per company incorporation

2. State of incorporation and company details

3. Arbitration clause (Section 11.2) — consider whether arbitration is appropriate or whether to allow small claims / court actions

4. Class action waiver (Section 11.3) — enforceability varies by state

5. Auto-renewal disclosure (Section 3) — must comply with state auto-renewal laws (e.g., California ARL)

6. Refund policy (Section 3.4) — current draft says no refunds; consider whether this is appropriate

7. Data retention (Section 8) — needs alignment with Privacy Policy

8. Sub-processor list (Section 6) — verify current sub-processors match actual usage

9. Indemnification (Section 9) — consider whether to limit to direct damages only

10. Contact information (Section 14) — needs accurate company details

Recommendations:

1. Have counsel finalize before any public release or paid launch

2. Implement clear "I agree" flow for these Terms (not just click-wrap)

3. Track version history of Terms (each "Last updated" date)

4. Add cookie consent banner if using any non-essential cookies

5. Consider adding dispute resolution specific to your state/country

6. Review with insurance carrier — confirm E&O covers AI-generated content risks