Klaviyo

Severity 3 · notable

“Thereafter, and unless otherwise specified in a Service Order, each applicable Service Order shall automatically renew for successive subscription terms of the same length(each a “Renewal Term”), unless either party provides notice to the other party of its intention not to renew prior to expiration of the Initial Term or the then-current Renewal Term. A party must provide at least (i) five (5) days prior notice if on a monthly billing cycle, or (ii) thirty (30) days prior notice if on any other billing cycle.”

Klaviyo automatically renews your subscription for the same length of time unless you give them 30 days' notice before the end of your current term.

If you forget to cancel, you'll be locked into another term and charged for it, even if you no longer need the service.

Matches FTC v. Amazon (Iliad Flow / Prime Enrollment) (2023)

Severity 3 · notable

“Klaviyo will provide Customer fourteen (14) days advance notice for any increase in fees. Any increases to the Fees shall apply at the beginning of the Customer’s following Term. Customer’s continued use of the Services after a Fee increase will constitute Customer’s agreement to the increase in Fees.”

Klaviyo will tell you 14 days before they increase your subscription price, and the new price applies at the start of your next term.

You could be surprised by a price hike and have to pay more if you don't notice the notice and close your account.

Matches FTC v. MoviePass / Helios and Matheson Analytics (2021)

Severity 3 · notable

“Klaviyo may terminate this Agreement at any time without cause and without notice. In addition, Klaviyo may terminate this Agreement upon notice to Customer if (a) Customer becomes the subject of a petition in bankruptcy or any proceeding relating to insolvency, receivership, or liquidation for the benefit of creditors; (b) in the event of non-payment in accordance with Section 6; or (c) Customer is on a free-tiered account and such account is inactive for a period of twelve (12) months or more.”

Klaviyo can end your contract for any reason, including if you don't pay or if your account is inactive for over a year.

Klaviyo can terminate your service unexpectedly, potentially leaving you without critical tools.

Matches PayPal Account Hold / Freeze Class Action — settled for $4M (2021)

Severity 3 · notable

“Upon termination, Customer shall not be entitled to any refund of any Fees previously paid to Klaviyo for Services except in the event Klaviyo terminates without cause or Customer terminates due to Klaviyo’s uncured material breach, in which case Customer may be entitled to a pro-rata refund of any pre-paid and unused Fees advanced to Klaviyo.”

You won't get a refund if Klaviyo terminates your contract without cause or if you terminate due to their material breach.

You could lose money on prepaid fees if Klaviyo ends the contract without a valid reason.

Matches Adobe Early Termination Fee Class Action (2024)

Severity 3 · notable

“Additionally, Klaviyo shall have no obligation to retain any Customer Data after any termination or expiration of this Agreement and may delete all Customer Data, unless required by applicable law.”

Klaviyo can delete all your data when your contract ends, unless the law requires them to keep it.

You risk losing all your customer data if you don't have a separate backup or if Klaviyo doesn't have a legal obligation to retain it.

Matches Bungie / Destiny 2 Account Termination Litigation (2023)

Severity 4 · material

“TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, NEITHER KLAVIYO, ITS AFFILIATES, SUPPLIERS, NOR SUBCONTRACTORS SHALL BE LIABLE FOR: (A) ANY SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES; OR (B) ANY LOSS OF PROFITS (WHETHER DIRECT OR INDIRECT), LOSS OF USE, DATA, BUSINESS, REVENUE, GOODWILL, VALUE, OR ANTICIPATED SAVINGS, ARISING OUT OF OR IN CONNECTION WITH THESE TERMS OR THE SERVICES, WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY), OR ANY OTHER LEGAL OR EQUITABLE THEORY, EVEN IF KLAVIYO HAS BEEN ADVISED OF, OR COULD HAVE REASONABLY FORESEEN, THE POSSIBILITY OF SUCH DAMAGES.”

Klaviyo and its partners are not liable for any indirect, special, or consequential damages, including lost profits or data.

If Klaviyo's service causes you significant financial loss, they are not responsible for covering those damages.

Matches Capital One Data Breach Class Action — settled for $190M (2022)

Severity 4 · material

“TO THE MAXIMUM EXTENT PERMITTED BY LAW, KLAVIYO’S TOTAL, CUMULATIVE LIABILITY FOR ALL CLAIMS ARISING OUT OF OR RELATED TO THE AGREEMENT, WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE) OR ANY OTHER LEGAL OR EQUITABLE THEORY, WILL BE LIMITED TO THE TOTAL AMOUNT PAID BY CUSTOMER UNDER THIS AGREEMENT IN THE SIX (6) MONTHS PRECEDING THE FIRST EVENT GIVING RISE TO LIABILITY.”

Klaviyo's total liability for any claims is capped at the amount you paid them in the six months before the issue arose.

If Klaviyo causes a major problem, your compensation is limited to a small fraction of your actual losses.

Matches Capital One Data Breach Class Action — settled for $190M (2022)

Severity 3 · notable

“Customer will indemnify, defend and hold Klaviyo, its officers, directors, affiliates, subsidiaries, licensors, agents and employees (each a “Klaviyo Party”) harmless from and against any and all losses, damages, liability, costs and expenses awarded by a court or agreed upon in settlement, as well as all reasonable and related attorneys’ fees and court costs arising out of or relating to: (a) a Customer Indemnity Responsibility; (b) Customer’s breach or alleged breach of any representation, warranty or obligation under the Agreement, or any violation of law; or (c) the use, transmission, access, disclosure, or other processing of Customer Data.”

You must defend Klaviyo against any claims related to your use of their service, your data, or your breach of the agreement.

You could be responsible for paying legal fees and damages for claims against Klaviyo that stem from your actions.

Matches T-Mobile Data Breach Settlement — settled for $350M (2022)

Severity 5 · egregious

“Klaviyo may unilaterally modify or discontinue the Pre-GA Versions at any time without notice or liability to Customer (or not release commercially), and any final commercial versions may be subject to the payment of additional fees.”

Klaviyo can change or stop offering beta services at any time without notice, and the final version might cost extra.

You might invest time in a beta feature only for it to be discontinued or become a paid service without warning.

Matches X Corp. Verified User Class Action (2024)

Severity 4 · material

“Klaviyo may amend the Agreement from time to time due to changes to the Services, to account for developments under the law, or for any other reason. When material modifications are made, Klaviyo may (and where required by law, will) send an email to you at the last email address you provided to us pursuant to the Agreement to provide an updated copy of the Agreement. Klaviyo may require you to provide affirmative acknowledgement to the updated Agreement in a specified manner before further use of the Services is permitted.”

Klaviyo can change the agreement terms at any time, and they will email you about significant changes.

You might agree to new terms without realizing it just by continuing to use the service.

Severity 4 · material

“Unless required sooner by law, updated terms shall apply to you the later of: (i) 30 days from the date of the updated Terms of Service; and (ii) the first day of your next Renewal Term (such date, the “Change Date”). If you do not agree to any change(s) that are not required by law after receiving a notice of such change(s), you shall notify Klaviyo and close your account prior to the Change Date. Otherwise, your continued use of the Services constitutes your acceptance of such change(s).”

Updated terms take effect 30 days after notice or at your next renewal date, whichever is later, and your continued use means you accept them.

You must actively close your account before the change date if you don't agree to new terms, or you'll be bound by them.

Matches Italian DPA (Garante) v. WhatsApp — settled for $6M (2022)

Severity 4 · material

“Klaviyo reserves the right to modify the Services from time to time. Some modifications will be provided to Customer at no additional charge. In the event Klaviyo adds additional functionality to a particular Service, Klaviyo may condition the implementation of such modifications on Customer’s payment of additional fees, provided that Customer may continue to use the version of the Services that Klaviyo makes generally available (without such features) without paying additional fees.”

Klaviyo can change the services they offer, and adding new features might require you to pay more.

You might have to pay extra for new features or be stuck with an older version of the service.

Matches X Corp. Verified User Class Action (2024)