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Loom

loom.com

9 flagged clauses across 7 risk dimensions

D
🤖

AI training

1 flag
  • Severity 5
    "If Customer provides Atlassian with feedback or suggestions regarding the Products or other Atlassian offerings, Atlassian may use the feedback or suggestions without restriction or obligation."

    Loom can use any feedback or suggestions you provide to improve their products without any restrictions or obligations to you.

    Anything you tell Loom about their product can be used by them to improve it, potentially benefiting competitors or future users more than you.

    ⚖️Matches The New York Times Co. v. OpenAI & Microsoft (2023)
🔄

Auto-renewal

1 flag
  • Severity 3
    "Unless otherwise specified in an Order and subject to the Product, Support or Advisory Services continuing to be generally available, a Subscription Term will automatically renew at Atlassian’s then current rates for: (i) if Customer’s prior Subscription Term was for a period less than twelve (12) months, another Subscription Term of a period equal to Customer’s prior Subscription Term, or (ii) if Customer’s prior Subscription Term was for twelve (12) months or more, twelve (12) months. Either party may elect not to renew a Subscription Term by giving notice to the other party before the end of the current Subscription Term. Customer must provide any notice of non-renewal through account settings in the Products, by contacting Atlassian’s support team or by otherwise providing Atlassian notice."

    Loom automatically renews your subscription for another term equal to your previous one, or 12 months if your term was longer. You must cancel through account settings or by contacting support at least 30 days before renewal.

    If you miss the 30-day cancellation window, you'll be locked into another subscription term at potentially higher rates.

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

Price hikes

1 flag
  • Severity 3
    "Unless otherwise specified in an Order and subject to the Product, Support or Advisory Services continuing to be generally available, a Subscription Term will automatically renew at Atlassian’s then current rates for: (i) if Customer’s prior Subscription Term was for a period less than twelve (12) months, another Subscription Term of a period equal to Customer’s prior Subscription Term, or (ii) if Customer’s prior Subscription Term was for twelve (12) months or more, twelve (12) months. Either party may elect not to renew a Subscription Term by giving notice to the other party before the end of the current Subscription Term. Customer must provide any notice of non-renewal through account settings in the Products, by contacting Atlassian’s support team or by otherwise providing Atlassian notice."

    Loom automatically renews your subscription for another term equal to your previous one, or 12 months if your term was longer. You must cancel through account settings or by contacting support at least 30 days before renewal.

    If they raise prices and you miss the 30-day cancellation window, you're locked in for another full term at the new price.

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

Data residency

1 flag
  • Severity 3
    "If Customer is domiciled: (i) in Europe, the Middle East, or Africa, this Agreement is governed by the laws of the Republic of Ireland, with the jurisdiction and venue for actions related to this Agreement in the courts of the Republic of Ireland, or (ii) elsewhere, this Agreement is governed by the laws of the State of California, with the jurisdiction and venue for actions related to this Agreement in the state and United States federal courts located in San Francisco, California."

    Your contract is governed by the laws of Ireland if you're in Europe, the Middle East, or Africa, or by California law if you're elsewhere. Legal disputes will be handled in those locations.

    If you have a legal dispute, you'll have to pursue it in Ireland or California, regardless of where you are located.

    ⚖️Matches Schrems II (Data Protection Commissioner v. Facebook Ireland) (2020)
🚪

Termination friction

1 flag
  • Severity 3
    "Upon expiration or termination of this Agreement or a Subscription Term: (a) Customer’s rights to use the applicable Products, Support or Advisory Services will cease, (b) Customer must immediately cease accessing the Cloud Products and using the applicable Software Products and Cloud Clients, and (c) Customer must delete (or, on request, return) all license keys, access keys and any Product copies. Following expiration or termination, unless prohibited by Law, Atlassian will delete Customer Data in accordance with the Documentation."

    When your subscription ends, you must stop using Loom and delete any access keys. Loom will then delete your data according to their documentation.

    You lose access to your data and must delete it yourself upon termination, with Loom also deleting it afterward.

    ⚖️Matches Bungie / Destiny 2 Account Termination Litigation (2023)
⚖️

Liability caps

2 flags
  • Severity 4
    "Except for Excluded Claims or Special Claims, to the maximum extent permitted by Law, neither party will have any liability arising out of or related to this Agreement for any loss of use, lost data, lost profits, interruption of business or any indirect, special, incidental, reliance or consequential damages of any kind, even if informed of their possibility in advance."

    Loom is not liable for any indirect damages like lost profits or business interruptions, even if they knew it could happen.

    If Loom's service causes you financial harm, you cannot recover damages for lost profits or business downtime.

    ⚖️Matches Yahoo! Customer Data Security Breach Settlement — settled for $118M (2019)
  • Severity 4
    "Except for Excluded Claims or Special Claims, to the maximum extent permitted by Law, each party’s entire liability arising out of or related to this Agreement will not exceed in aggregate the amounts paid to Atlassian for the Products, Support and Advisory Services giving rise to the liability during the twelve (12) months preceding the first event out of which the liability arose. Customer’s payment obligations under Sections 10.1 (Fees) and 10.2 (Taxes) are not limited by this Section 14.2."

    Loom's total liability to you for any issue will not exceed the amount you paid them in the 12 months before the issue arose.

    If Loom causes a major problem, the most you can get back is what you already paid them, limiting your recovery.

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

Indemnification

clear

No flags in this category.

👻

Silent term changes

2 flags
  • Severity 4
    "For paid subscriptions: (i) except as specified below, modifications to this Agreement will take effect at the next Order or renewal unless either party elects to not renew pursuant to Section 10.1(c) (Renewals), and (ii) Atlassian may specify that modifications will become effective during a then-current Subscription Term if: (A) required to address compliance with Law, or (B) required to reflect updates to Product functionality or introduction of new Product features. If Customer objects, Customer may terminate the remainder of the then-current Subscription Term for the affected Products as its exclusive remedy. To exercise this right, Customer must notify Atlassian of its termination under this Section 20.9(c) within thirty (30) days of the modification notice, and Atlassian will refund any pre-paid fees for the terminated portion of the applicable Subscription Term."

    Loom can make changes to the agreement during your subscription term if required by law or to update product features. If you object, you can terminate your subscription early and get a refund.

    Loom can force changes on you mid-term, and your only recourse is to terminate and seek a refund within 30 days.

    ⚖️Matches X Corp. Verified User Class Action (2024)
  • Severity 4
    "Atlassian may modify this Agreement (which includes the Policies, Product-Specific Terms and DPA) from time to time, by posting the modified portion(s) of this Agreement on Atlassian’s website. Atlassian must use commercially reasonable efforts to post any such modification at least thirty (30) days prior to its effective date."

    Loom can change the agreement terms at any time, but they will post changes online at least 30 days before they take effect.

    Loom can unilaterally change the terms of your contract with 30 days' notice, potentially altering your rights and obligations.

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

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