It's funny, because on the one hand we have privacy advocates demanding simpler and plain language TOS's that aren't so draconian. On the other hand, if you don't have a draconian TOS's, you're going to get sued by a privacy advocate.
Or better, how about simple and honest business models? "Shutterfly is a photo printer, so they make money by charging people to print photos." No biometric database is needed.
Know that you're just giving an example. Points about simple and honest business model comment. Maybe this is considered simple now in terms of the Valley. The honest part, almost no one reads the TOS/EULA.