Zendesk

Severity 5 · egregious

“Customer instructs Zendesk to use Service Data to provide, secure, and improve Zendesk’s products and services.”

Zendesk uses your customer data to improve its products and services.

Your confidential customer data is used to train Zendesk's AI, and you can't get it back.

Severity 3 · notable

“Unless either party provides at least 30 days’ prior written notice of its intent not to renew, or the Order Form states otherwise, the Subscription Term will automatically renew for an equivalent term and Zendesk may apply then-current rates. Customer must send an email to revops@zendesk.com to notify Zendesk of its intent not to renew.”

Zendesk automatically renews your subscription and may increase the price, requiring you to email them 30 days in advance to cancel.

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

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

Severity 3 · notable

“Unless either party provides at least 30 days’ prior written notice of its intent not to renew, or the Order Form states otherwise, the Subscription Term will automatically renew for an equivalent term and Zendesk may apply then-current rates. Customer must send an email to revops@zendesk.com to notify Zendesk of its intent not to renew.”

Zendesk automatically renews your subscription and may increase the price, requiring you to email them 30 days in advance to cancel.

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

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

Severity 1 · low

“If Zendesk has a legal obligation to collect or pay any Taxes, Zendesk will invoice the Customer for such Taxes, unless Customer provides Zendesk with a valid tax exemption certification authorized by the appropriate taxing authority before Zendesk issues the invoice.”

Zendesk will invoice you for any taxes they are legally obligated to collect.

You may have to pay additional taxes on top of your subscription fees if you don't provide a tax exemption certificate.

Severity 3 · notable

“If Zendesk terminates the Agreement under Section 7.3 or if Customer cancels its account before the end of the Subscription Term, Customer will pay any unpaid amounts covering the remainder of the Subscription Term. In no event will termination relieve Customer of its obligation to pay any fees payable to Zendesk or the Reseller for the period before the effective date of termination.”

If you cancel your subscription early, you must pay for the rest of the term.

You'll still owe Zendesk the full amount for your contract term even if you stop using their service.

Matches Adobe Early Termination Fee Class Action (2024)

Severity 3 · notable

“Suspension includes removing or disabling Agents, Service Data, or other content. Unless applicable law requires otherwise, Zendesk will use commercially reasonable efforts to notify Customer by email or through the Services before suspending access to the Services.”

Zendesk can suspend your account, including removing your data, with notice before they do it.

Your access to your data and services can be cut off if Zendesk believes you've violated the terms.

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

Severity 5 · egregious

“EXCEPT FOR EXCLUDED CLAIMS, TO THE FULLEST EXTENT PERMITTED BY LAW, UNDER NO CIRCUMSTANCES AND UNDER NO LEGAL THEORY (WHETHER IN CONTRACT, TORT, NEGLIGENCE, OR OTHERWISE) WILL EITHER PARTY OR THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SERVICE PROVIDERS, SUPPLIERS, OR LICENSORS, BE LIABLE TO THE OTHER PARTY OR ITS AFFILIATES FOR ANY LOST PROFITS, LOST SALES OR BUSINESS, LOST DATA, BUSINESS INTERRUPTION, LOSS OF GOODWILL, COSTS OF COVER OR REPLACEMENT, OR FOR ANY OTHER TYPE OF INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, CONSEQUENTIAL, OR PUNITIVE LOSS OR DAMAGES, OR FOR ANY OTHER INDIRECT LOSS OR DAMAGES INCURRED BY THE OTHER PARTY OR ITS AFFILIATES IN CONNECTION WITH THIS AGREEMENT OR THE SERVICES, REGARDLESS OF WHETHER SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF OR COULD HAVE FORESEEN SUCH DAMAGES.”

Zendesk and its affiliates are not liable for any indirect damages, like lost profits or data loss, even if they caused them.

You can't recover any consequential damages from Zendesk if their service causes you financial harm.

Matches Yahoo! Customer Data Security Breach Settlement — settled for $118M (2019)

Severity 4 · material

“EXCEPT FOR EXCLUDED CLAIMS, TO THE FULLEST EXTENT PERMITTED BY LAW, THE TOTAL AGGREGATE LIABILITY OF EACH PARTY AND ITS AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE SERVICES WILL IN NO EVENT EXCEED THE AMOUNTS PAID OR PAYABLE BY CUSTOMER FOR THE SERVICES IN THE 12-MONTH PERIOD PRECEDING THE INITIAL CLAIM GIVING RISE TO LIABILITY.”

Zendesk's total liability to you is capped at the amount you paid them in the 12 months before the claim.

If Zendesk's service causes significant financial loss, your recovery is limited to what you already paid them.

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

Severity 3 · notable

“Customer will defend and indemnify Zendesk from and against any third-party claims made against Zendesk or its Affiliates that arise from or relate to: (i) Service Data; or (ii) any violations of this Agreement by Customer, its Affiliates, or its personnel.”

You must defend Zendesk against any third-party claims related to your data or your violation of the agreement.

You'll have to pay for legal costs if someone sues Zendesk because of your actions or data.

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

Severity 4 · material

“Zendesk may amend this Agreement from time to time, in which case the new Agreement will supersede prior versions. Zendesk will notify the Customer not less than 30 days prior to the effective date of any such amendment and Customer’s continued use of the Services following the effective date of any amendment will be relied upon by Zendesk as Customer’s consent to such amendment. Zendesk may make updates to online or URL terms and policies that are incorporated into this Agreement. Unless otherwise noted by Zendesk, such updates will become effective upon publication.”

Zendesk can change the agreement terms with 30 days' notice, and your continued use means you accept the new terms.

You could be bound by new terms you haven't reviewed or agreed to just by continuing to use the service.

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

Severity 1 · low

“If Customer provides Zendesk with feedback or suggestions regarding the Services, Zendesk may use the feedback or suggestions without restriction or obligation.”

Zendesk can use any feedback you provide without restriction or obligation.

Your suggestions for improvement can be used by Zendesk without giving you any credit or compensation.