Litigation vs. Transactional Law

SPECIFIC LEGAL RISKS

Behold:

  1. False or Misleading Advertising / Consumer Protection
  • Kenya: Consumer Protection Act, 2012 – prohibits false, misleading, or deceptive representations about services.
  • EU: Unfair Commercial Practices Directive (2005/29/EC).
  • US: FTC Act §5 (unfair or deceptive acts).
    2.Risk:* If ELS outputs are framed as revealing actual hidden meaning or objective truth, regulators can argue the app misrepresents a speculative pattern tool as a validated analytical method.
  1. Negligent Misrepresentation / Reliance Liability
  • Common law doctrine (Kenya, UK, US).
  • Kenya: Applied via tort principles under the Law of Contract Act and case law.
    4.Risk:* Users relying on ELS outputs for decisions involving documents, identity, authenticity, religion, or history may claim foreseeable reliance on an authoritative-seeming system.
  1. Defamation and Injurious Falsehood
  • Kenya: Defamation Act (Cap. 36).
  • UK: Defamation Act 2013.
  • US: State defamation laws.
    6.Risk:* ELS interpretations that imply fraud, deception, conspiracy, or hidden intent in modern documents or names can be construed as defamatory—even if “algorithmic” or probabilistic.
  1. Scientific and Technical Misrepresentation
  • EU: Digital Services Act (DSA) + AI Act (risk-based classification).
  • General consumer law principles globally.
    8.Risk:* Calling ELS an “algorithm” or “analysis engine” without clarifying its non-validated, heuristic nature risks being treated as misrepresenting scientific credibility.
  1. Data Protection and Purpose Limitation
  • Kenya: Data Protection Act, 2019.
  • EU: GDPR (Articles on purpose limitation and profiling).
    10.Risk:* Users upload documents for translation or inspection, but ELS generates speculative secondary interpretations. Regulators may argue this exceeds the original processing purpose.
  1. Automated Decision-Making / Profiling Restrictions
  • EU: GDPR Article 22.
  • *EU AI Act (forthcoming enforcement)*.
    12.Risk:
    If ELS outputs are framed as determinations (authentic/fake, real/false meaning), the app risks being categorized as automated decision support without required safeguards.
  1. Cultural and Religious Protection Laws
  • Kenya: Constitutional protections on religion and cultural heritage.
  • Various jurisdictions: Cultural heritage and hate-speech-adjacent statutes.
    14.Risk:* Monetized “hidden meaning” extraction from sacred texts can be construed as exploitative, misleading, or culturally harmful depending on framing.
  1. Product Liability (Software as a Service)
  • EU: Product liability regime expanding to software and AI systems.
  • Common law jurisdictions: Negligence-based liability.
    16.Risk:* If ELS is marketed as a functional analysis tool rather than exploratory software, failures or misleading outputs can be framed as defective service design.
  1. Platform and App Store Compliance
  • Google Play / Apple App Store policies (misleading claims, pseudoscience).
    18.Risk:* Even if courts never get involved, overstated ELS claims can get the app delisted faster than a legal injunction ever could.

More proof that you can make an app in 30 days.. but you can’t register it in 30 years.