This seems pretty straight forward to me:

A)  you must have the users consent to store and transmit their password in
clear text

B) you need to talk to or hire out a lawyer to make sure the agreement is
such that it adequately protects you.
On May 22, 2012 9:26 PM, "Alaron" <[email protected]> wrote:

> In my application, I use a user's email and password to log them into
> another site.  That is, I am a 3rd party service.  I plaster a nice big
> "it's all in cleartext so do this at your own risk" sign, but for my own
> safety I do not keep the password past the session.  This is obviously
> annoying to users and I'd like to change that, but the way I read the
> Distribution Agreement, I'm not allowed to.  Am I interpreting it correctly?
>
> If the users provide you with, or your Product accesses or uses, user
> names, passwords, or other login information or personal information, you
> must make the users aware that the information will be available to your
> Product, and you must provide *legally adequate privacy notice and
> protection* (*I have no idea what makes for legally adequate notice*) for
> those users. Further, your Product may only use that information for the
> limited purposes for which the user has given you permission to do so. If
> your Product *stores personal or sensitive information provided by users,
> it must do so securely* (*I have to send the password across the wire in
> cleartext... no idea how to store it securely*) and only for *as long as
> it is needed* (*I clear the information when the user leaves the app...
> this I want to change*). But *if the user has opted into a separate
> agreement with you* (*does putting up the "at your own risk" sign
> constitute a separate agreement?"*) that allows you or your Product to
> store or use personal or sensitive information directly related to your
> Product (not including other products or applications) then the terms of
> that separate agreement will govern your use of such information.
>
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