PandaDoc

Severity 5 · egregious

“Notwithstanding anything to the contrary in this Agreement, PandaDoc owns and may process aggregated, anonymized data that cannot identify any person and is derived from or created through the use of the Services by Customer or its Users (“Usage Data”) as it sees fit, including to improve and further develop the Services. Usage Data does not include Personal Data.”

PandaDoc owns and can use any anonymized data you create with their service to improve their products, with no restrictions.

Your company's usage data, even if anonymized, could be used to train AI models that benefit other customers or PandaDoc directly.

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

Severity 3 · notable

“EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN AN ORDER OR IF A PARTY PROVIDES THE OTHER PARTY WRITTEN NOTICE OF NON-RENEWAL AT LEAST THIRTY (30) DAYS PRIOR TO THE END DATE OF THE TERM, THE TOTAL NUMBER OF UNITS PURCHASED OR OTHERWISE PROVISIONED OR USED DURING THE TERM FOR EACH SERVICE (INCLUDING WITHOUT LIMITATION, SEAT, VOLUME BASED AND SUPPORT PRODUCTS) WILL AUTOMATICALLY RENEW FOR SUCCESSIVE ONE (1) YEAR RENEWAL TERMS UNDER THIS AGREEMENT AND THE APPLICABLE ORDER.”

PandaDoc automatically renews your annual subscription for another year unless you give them 30 days' notice before the end of your term.

If you miss the 30-day cancellation window, you'll be locked into another year of service at the current price.

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

Severity 3 · notable

“Notwithstanding anything to the contrary in this Agreement, if Customer is on a monthly plan with PandaDoc, (a) Customer will not receive the Price Increase Notice described in Section 5.4, (b) Customer’s Order will automatically renew every month at PandaDoc’s then published rates, and (c) Customer’s credit card will be charged monthly on or about the same day of the month that Customer initially signed up for the plan.”

PandaDoc automatically renews your monthly subscription every month at their current rates and charges your card automatically.

You'll be charged monthly unless you actively cancel, and you won't get a notice before price increases.

Matches FTC v. Age of Learning (ABCmouse) — settled for $10M (2020)

Severity 4 · material

“PandaDoc may increase the unit price for a Service’s Renewal Term by issuing written notice to Customer prior to the start date of such Renewal Term (the “Price Increase Notice”). If a Service automatically renews under this Agreement, the annualized price for each unit of a Service for the Renewal Term will be the greater of (a) the published price on the Site, or (b) the annualized price for such Service unit during the Term, as may be increased by notice issued by PandaDoc pursuant to this Section 5.4.”

PandaDoc can increase your subscription price by giving you written notice before your renewal term begins.

Your renewal price could be higher than your current price, based on their published rates or a previous increase.

Matches Netflix Price Hike Class Action (2023)

Severity 4 · material

“If PandaDoc deprecates, discontinues, or materially modifies a Service and offers Customer a replacement or successor Service at renewal, PandaDoc may adjust pricing for such replacement or successor Service to reflect PandaDoc's then-current pricing for comparable functionality pursuant to a Price Increase Notice.”

If PandaDoc discontinues a service and offers a replacement, they can change the price to their current rates for similar features.

You might be moved to a new service at a higher price point without the option to keep your old pricing.

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

Severity 3 · notable

“Notwithstanding anything to the contrary in this Agreement, if Customer is on a monthly plan with PandaDoc, (a) Customer will not receive the Price Increase Notice described in Section 5.4, (b) Customer’s Order will automatically renew every month at PandaDoc’s then published rates, and (c) Customer’s credit card will be charged monthly on or about the same day of the month that Customer initially signed up for the plan.”

If you're on a monthly plan, PandaDoc automatically renews your subscription at their current published rates without prior notice.

Your monthly subscription will renew at whatever the current price is, and your card will be charged automatically.

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

Severity 3 · notable

“PandaDoc may disable or suspend the Customer’s access to the Services immediately if: (a) Customer fails to make a payment for more than fifteen (15) days following its due date; (b) Customer breaches or PandaDoc reasonably suspects based on documented evidence that Customer has breached this Agreement; (c) Customer or its Users use of the Services poses a security risk to the Services or any other customer or may subject PandaDoc or any third-party to liability; or (d) PandaDoc’s continued provision of any Services to the Customer is prohibited by applicable law.”

PandaDoc can immediately suspend your access if you're late on payments, breach the agreement, pose a security risk, or if required by law.

Failure to meet payment obligations or security requirements can result in immediate loss of access to the service.

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

Severity 3 · notable

“If Customer fails to retrieve its Customer Content prior to the termination of the Agreement, Customer may request, within sixty (60) days after such termination, that PandaDoc allow Customer to retrieve Customer Content still remaining in the Services. After such 60-day period, Customer Content may be deleted without any liability to PandaDoc.”

PandaDoc will delete your content 60 days after your contract ends, so you need to retrieve it before then.

If you don't download your data within 60 days of canceling, you will lose access to it permanently.

Matches Bungie / Destiny 2 Account Termination Litigation (2023)

Severity 3 · notable

“If Customer cancels a monthly plan before an upcoming renewal date, Customer will have access to the purchased PandaDoc Services through the end of the then-current month.”

If you cancel a monthly plan, you keep access to PandaDoc's services until the end of the current month.

You won't get a refund for the unused portion of your monthly subscription if you cancel early.

Matches FTC v. Match Group (Match.com) (2019)

Severity 2 · minor

“Either party may terminate an Order or this Agreement in the event the other party becomes Insolvent or ceases to do business.”

Either party can end the contract immediately if the other party goes bankrupt or stops operating.

Financial instability or cessation of business by either party allows for immediate contract termination.

Severity 2 · minor

“Either party may terminate an Order or this Agreement immediately upon written notice if the other party materially breaches this Agreement or any Order, and fails to cure such breach within thirty (30) calendar days after receipt of written notice.”

Either you or PandaDoc can terminate the contract if the other party commits a major violation and doesn't fix it within 30 days.

A significant breach by either party can lead to the contract being canceled after a 30-day cure period.

Severity 3 · notable

“TO THE EXTENT PERMITTED BY LAW, EACH PARTY’S TOTAL CUMULATIVE LIABILITY AND OBLIGATIONS UNDER THIS AGREEMENT WILL NOT EXCEED THE AMOUNTS PAID OR PAYABLE BY CUSTOMER TO PANDADOC FOR THE SERVICES GIVING RISE TO THE LIABILITY OR OBLIGATION IN THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE DATE ON WHICH THE LIABILITY AROSE (THE “LIABILITY CAP”).”

PandaDoc's total liability to you is capped at the amount you paid them in the 12 months before the issue arose.

If PandaDoc causes a major problem, your maximum recovery is limited to what you've already paid them.

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

Severity 3 · notable

“NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, TO THE EXTENT PERMITTED BY LAW, NEITHER PARTY WILL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES (INCLUDING WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, DATA, OR OTHER INTANGIBLE LOSSES), RESULTING FROM USE OF THE SERVICES OR DOCUMENTATION, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF THESE DAMAGES.”

PandaDoc is not liable for any indirect, special, or consequential damages you might suffer from using their service.

You can't recover lost profits or other indirect financial losses from PandaDoc if their service causes them.

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

Severity 2 · minor

“PANDADOC’S LIABILTY FOR A FREE TRIAL WILL NOT EXCEED US $50.”

PandaDoc's liability for any issues arising from your use of a free trial is capped at $50.

If a free trial causes you damages, your compensation is strictly limited to a small amount.

Severity 3 · notable

“To the extent permitted by law, Customer will indemnify, defend and hold PandaDoc, its Affiliates, and their respective officers, agents, employees, and representatives, harmless from and against any third-party claim claims, proceedings, demands, investigations or suits (each a “Claim”) arising out of, or relating to: (a) Customer’s breach of the Agreement; (b) Customer’s use of the Services in a manner that violates any applicable law(s); or (c) Customer Content.”

You must defend PandaDoc against any third-party claims that arise from your breach of the agreement or your use of their service.

You could be responsible for paying legal fees and damages if your actions lead to a lawsuit against PandaDoc.

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

Severity 3 · notable

“PandaDoc will defend Customer, and its respective officers, agents, employees, and representatives from and against any Claim to the extent it arises out of an allegation that Customer’s use of the Services in accordance with the Agreement infringes on a third-party’s intellectual property rights.”

PandaDoc will defend you against claims that their service infringes on a third party's intellectual property rights.

PandaDoc will cover your legal costs if you are sued because their service violates someone else's patent or copyright.

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

Severity 3 · notable

“PandaDoc’s indemnification obligations hereunder shall not apply where the Claim is based in whole or in part on: (a) Customer Content, (b) modifications made to the Services or any component thereof in compliance with designs, specifications or instructions provided in writing by Customer; (c) Customer’s use of the Services in combination with a third-party product or service not provided by PandaDoc; (d) Customer’s use of the Services in breach of this Agreement.”

PandaDoc's duty to defend you doesn't apply if the claim involves your content, modifications you made, or how you combined their service with other products.

You might have to defend yourself if a lawsuit against you involves your own content or how you used the PandaDoc service.

Matches Equifax FTC Settlement — settled for $700M (2019)

Severity 4 · material

“PandaDoc reserves the right to revise this Agreement during the Term by publishing a revised version on the Site (“Updated Agreement”). After the date of publication, Customer’s continued use of the Services will constitute acceptance of the Updated Agreement unless Customer provides written notice to PandaDoc of Customer’s objection to the Updated Agreement within five (5) days of such publication date, in which case the Updated Agreement will apply at the start of the Renewal Term.”

PandaDoc can change the agreement by publishing a new version online, and your continued use means you accept it unless you object within 5 days.

You could be bound by new terms you haven't fully reviewed if you don't actively object within a short timeframe.

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

Severity 4 · material

“PandaDoc may update the Security Practices from time to time, provided that the update does not materially reduce the overall level of security or commitments as described therein.”

PandaDoc may update their security practices, but they promise not to significantly lower the overall level of security.

While security levels are intended to remain high, specific practices can change without your explicit consent.

Severity 3 · notable

“PandaDoc may review, either by manual or automated means, all Customer Content and reject, not post, remove, deny access to, or delete any Customer Content which breaches this Agreement.”

PandaDoc can review your content and remove it if it violates the agreement, even if it was initially accepted.

Content you upload could be removed at any time if PandaDoc decides it breaches their terms.

Severity 3 · notable

“PandaDoc makes no representations or warranties regarding any PandaDoc Properties’ compatibility or integration with a Third Party Product, including any updates thereto, and reserves the right to terminate any integration or link to a Third Party Product at any time in its sole discretion.”

PandaDoc can remove any integrations with third-party products at any time without notice.

Your existing integrations with other software could be disconnected without warning, disrupting your workflow.