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Shopify

shopify.com

18 flagged clauses across 7 risk dimensions

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AI training

1 flag
  • Severity 4
    "You hereby grant Shopify a non-exclusive, transferable, sub-licensable, royalty-free, worldwide right and license to host, use, distribute, expose, modify, run, copy, store, publicly perform, communicate to the public (including by telecommunication), broadcast, reproduce, make available, display, and translate, and create derivative works of your Materials. We may, for example, use our rights under this license to operate, provide, evaluate, enhance, improve, and promote the Services and to perform our obligations and exercise our rights under the Terms of Service."

    Shopify can use your content, including your store's materials, to operate, improve, and promote their services.

    Your business data and materials could be used by Shopify in ways you don't expect, potentially for their own commercial gain.

    βš–οΈMatches Andersen v. Stability AI, Midjourney, DeviantArt (2023)
πŸ”„

Auto-renewal

1 flag
  • Severity 2
    "Any domain you purchase through us will automatically renew unless you opt out."

    Shopify automatically renews any domain you buy through them unless you tell them to stop.

    You could be charged for a domain renewal you no longer need if you forget to opt out.

πŸ’Έ

Price hikes

1 flag
  • Severity 3
    "Shopify may change the Fees for the Services from time-to-time. We will provide you with 30 days advanced notice prior to any changes in Fees by sending an email to the Primary Email Account, providing notice through the Shopify administrative console, or by similar means."

    Shopify can change your subscription fees at any time, but they will give you 30 days' notice via email or console.

    You could face higher costs for your subscription with only a month's notice, impacting your budget planning.

    βš–οΈMatches Netflix Price Hike Class Action (2023)
🌍

Data residency

clear

No flags in this category.

πŸšͺ

Termination friction

5 flags
  • Severity 3
    "Without limiting any other remedies, we may suspend or terminate your Account or the Terms of Service for any reason, without notice and at any time (unless otherwise required by law), including if we suspect that you (by conviction, settlement, insurance or escrow investigation, or otherwise) have engaged in fraudulent activity in connection with the use of the Services."

    Shopify can suspend or terminate your account for any reason, at any time, without notice, especially if they suspect fraud.

    Your store could be shut down unexpectedly, potentially with little recourse, if Shopify suspects any fraudulent activity.

    βš–οΈMatches PayPal Account Hold / Freeze Class Action β€” settled for $4M (2021)
  • Severity 3
    "Upon termination of the Services by either party for any reason: Shopify will cease providing you with the Services and you will no longer be able to access your Account; unless otherwise provided in the Terms of Service, you will not be entitled to any refunds of any Fees, pro rata or otherwise; any outstanding balance owed to Shopify for your use of the Services through the effective date of such termination will immediately become due and payable in full; and your Shopify Store will be taken offline."

    When your account is terminated, Shopify will stop providing services, your store will go offline, and you won't get refunds for any unused time.

    You will lose access to your store and any remaining service period without a refund, and all outstanding balances become immediately due.

    βš–οΈMatches Bungie / Destiny 2 Account Termination Litigation (2023)
  • Severity 3
    "You may cancel your Account and terminate the Terms of Service at any time by contacting Shopify Support and then following the specific instructions indicated to you in Shopify's response."

    You can cancel your account by contacting Shopify Support and following their specific instructions.

    There might be a specific process or steps required to ensure your cancellation is processed correctly.

    βš–οΈMatches FTC v. Match Group (Match.com) (2019)
  • Severity 3
    "If the outstanding Fees remain unpaid for 60 days following the date of suspension, Shopify reserves the right to terminate your Account in accordance with Section 14."

    If your fees remain unpaid for 60 days after being suspended, Shopify will terminate your account.

    You risk losing your entire account and potentially your store data if you have outstanding payments for two months.

    βš–οΈMatches PayPal Account Hold / Freeze Class Action β€” settled for $4M (2021)
  • Severity 3
    "If payment of Fees is unsuccessful within 28 days of our initial attempt to process payment, Shopify may freeze your store. Your Account will be reactivated upon your payment of any outstanding Fees, plus the Fees applicable to your next billing cycle. You may not be able to access your Account or your storefront during any period of suspension."

    If you don't pay your fees within 28 days, Shopify can freeze your store, and you'll have to pay outstanding fees plus the next billing cycle to get it back.

    Your store could be offline and inaccessible for an unknown period if you miss a payment deadline.

βš–οΈ

Liability caps

2 flags
  • Severity 3
    "You expressly understand and agree that, to the extent permitted by applicable laws, Shopify and its suppliers will not be liable for any direct, indirect, incidental, special, consequential or exemplary damages, including but not limited to, damages for loss of profits, goodwill, use, data or other intangible losses arising out of or relating to the use of or inability to use the Service or these Terms of Service (however arising, including negligence)."

    If Shopify messes up and causes you financial harm, the most they'll pay is what you paid them in the last year.

    This caps your recovery at a maximum of one year's fees, even if their mistake costs you significantly more revenue.

    βš–οΈMatches Yahoo! Customer Data Security Breach Settlement β€” settled for $118M (2019)
  • Severity 2
    "The Services are provided on an "as is" and "as available" basis without any warranty or condition, express, implied or statutory. Shopify does not warrant that the Services will be uninterrupted, timely, secure, or error-free."

    Shopify doesn't promise their services will be uninterrupted, timely, secure, or error-free.

    You might experience downtime or errors with the service, and Shopify is not obligated to fix them quickly or compensate you.

πŸ›‘

Indemnification

2 flags
  • Severity 4
    "You agree to indemnify and hold us and (as applicable) our parent, subsidiaries, affiliates, Shopify partners, officers, directors, agents, employees, and suppliers harmless from any claim or demand, including reasonable attorneys' fees, arising out of your use of a Third Party Service or your relationship with a Third Party Provider."

    You must defend Shopify and its partners if a third party claims your use of another service or your relationship with a third-party provider caused them harm.

    You could be liable for legal costs and damages if your interactions with third-party services lead to claims against Shopify.

    βš–οΈMatches T-Mobile Data Breach Settlement β€” settled for $350M (2022)
  • Severity 3
    "You agree to indemnify and hold us and (as applicable) our parent, subsidiaries, affiliates, Shopify partners, officers, directors, agents, employees, and suppliers harmless from any claim or demand, including reasonable attorneys' fees, made by any third party due to or arising out of (a) your breach of these Terms of Service or the documents it incorporates by reference (including the AUP); (b) or your violation of any law or the rights of a third party; or (c) any aspect of the transaction between you and your Customer, including but not limited to refunds, fraudulent transactions, alleged or actual violation of applicable laws (including but not limited to Federal and State consumer protection laws), or your breach of the Terms of Service."

    You have to defend Shopify and their partners if a third party sues them because of your actions or your customers' actions.

    You could be responsible for paying legal fees and damages if your business practices lead to a lawsuit against Shopify.

    βš–οΈMatches T-Mobile Data Breach Settlement β€” settled for $350M (2022)
πŸ‘»

Silent term changes

6 flags
  • Severity 4
    "Unless we indicate otherwise in our notice (if applicable), any changes to the Terms of Service will be effective immediately upon posting of such updated terms at this location. Your continued access to or use of the Services after we provide such notice, if applicable, or after we post such updated terms, constitutes your acceptance of the changes and consent to be bound by the Terms of Service as amended."

    Any changes to the Terms of Service are effective immediately upon posting unless otherwise noted, and your continued use signifies acceptance.

    You must constantly monitor for updates, as using the service after changes are posted means you agree to them, even if you didn't see the notice.

    βš–οΈMatches Italian DPA (Garante) v. WhatsApp β€” settled for $6M (2022)
  • Severity 4
    "Except where prohibited in these Terms of Service or by applicable law, we reserve the right to modify the Services or any part thereof for any reason, without notice and at any time."

    Shopify can change the services or any part of them for any reason, without notice, and at any time.

    You could suddenly lose access to features or find the service significantly altered without any warning.

    βš–οΈMatches X Corp. Verified User Class Action (2024)
  • Severity 4
    "Shopify may make changes that materially adversely affect your use of the Services or your rights under the Terms of Service at any time and with immediate effect (i) for legal, regulatory, fraud and abuse prevention, or security reasons; or (ii) to restrict products or activities that we deem unsafe, inappropriate, or offensive."

    Shopify can make changes that negatively impact your use of the services or your rights at any time, immediately, for safety or security reasons.

    Shopify can disable features or alter terms that affect your business without warning if they deem it a safety or security issue.

    βš–οΈMatches X Corp. Verified User Class Action (2024)
  • Severity 4
    "We reserve the right, in our sole and absolute discretion, to update or change any portion of the Terms of Service at any time. We will provide you with reasonable advance notice of changes to the Terms of Service that materially adversely affect your use of the Services or your rights under the Terms of Service by sending an email to the Primary Email Address, providing notice through the Shopify administrative console, or by similar means."

    Shopify can update or change the Terms of Service at any time, and your continued use means you accept the changes.

    You might be bound by new terms you haven't actively agreed to, simply by continuing to use the service.

    βš–οΈMatches Italian DPA (Garante) v. WhatsApp β€” settled for $6M (2022)
  • Severity 4
    "However, Shopify may make changes that materially adversely affect your use of the Services or your rights under the Terms of Service at any time and with immediate effect (i) for legal, regulatory, fraud and abuse prevention, or security reasons; or (ii) to restrict products or activities that we deem unsafe, inappropriate, or offensive."

    Shopify can make changes that negatively impact your use of the services or your rights at any time, immediately, for safety or security reasons.

    Shopify can disable features or alter terms that affect your business without warning if they deem it a safety or security issue.

    βš–οΈMatches X Corp. Verified User Class Action (2024)
  • Severity 3
    "Shopify may change the Fees for the Services from time-to-time. We will provide you with 30 days advanced notice prior to any changes in Fees by sending an email to the Primary Email Account, providing notice through the Shopify administrative console, or by similar means."

    Shopify can change your subscription fees at any time, but they will give you 30 days' notice via email or console.

    You could face higher costs for your subscription with only a month's notice, impacting your budget planning.

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