I'm not a lawyer, but it seems out of proportion to any damages sustained to Tile and likely unenforceable (not to mention uncollectable)?
(FWIW: I think ID verification is a good non-technical deterrent to what is largely a non-techincal problem!)
Perhaps a court would limit the fine, but liquidated damages are a commonly used concept, and I don't think most people will tempt fate.
Aggressive stalkers will buy dedicated GPS devices - this is a real roadblock.
In so far as I would hope most people would avoid doing business with companies that mention $1 million dollar civil lawsuits in their terms of service.
You're right: they'll just use your far more well-established competitor without such ridiculous language.
Additionally, most stalkers know their victims, so you are entering into a vast grey area that civil courts do not have prior established case law (vis-a-vis a third party as you are) to adjudicate and for which the burden of proof is on your lawyers who won't have the same powers to subpoena information as is available in criminal matters. It's also unlikely stalkers would have significant assets, making civil enforcement of this policy potentially very costly and time consuming for your company. Making a mistake with an enforcement action or loosing a case would be incredibly poor optics for your company.
Sending a letter to your legal staff for a cursory review and getting their rubber stamp won't change the potential legal outcome for your company or shield you from liability, when (not if) the time comes, and likely opens you to substantial liability should the product be used in the service of a crime.
That said, if I really want to stalk someone your app already provides everything that is needed, and in fact it is currently being used by sex traffickers and domestic violence abusers to track, stalk and exploit their victims en mass [1].
[1] https://www.forbes.com/sites/thomasbrewster/2023/04/06/sex-t...