A short and clear contract is necessary to allow clients to understand their real costs when regulators cannot catch up innovation speed

Innovation also moves faster than regiulation, this creates problems for regulators. The 2008 Financial Crisis proves that regulators can hardly catch up with innovation if the industry is at its full speed. Nowadays regulators can catch up with banks, because the profits in the banking sector have sharply dropped since the financial crisis and bankers' speed of innovation has also slowed down. Currently the innovation in the IT industry is moving at its full speed. We can see that the regulators around the world are not efficient to create new policies to control the spillover effects of IT innovation.Moreover, sometimes people do not recognise the spillover effects. Some people do not consider companies collecting their private data as a spillover effect when receiving free services. There is another big issue that the agreements made by those IT companies with their clients are tediously long that almost no one will sign after finishing reading the whole contract. Maybe the regulators cannot catch up with the innovation speed; however if we want to rely on the market force, it is important for clients to understand their costs. Therefore, a short and clear contract is necessary to ensure clients understanding their real costs.