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Plain-English summary
This review of Penpot's Terms of Service highlights several areas of concern. Your employer can access your account and data without notice (data_use-1), and any feedback you provide can be used by Kaleidos without compensation (data_use-3). Kaleidos can cancel your free account without notice or liability (cancellation_renewal-1) and can suspend or delete accounts for various reasons, also without liability (cancellation_renewal-2). If your account is cancelled, you may lose access to all your data (cancellation_renewal-3). Additionally, Kaleidos has limited liability for unauthorized account use even if notified (risk_flags-1), and disclaims liability for loss of profits, data, or various other indirect damages (risk_flags-2). They also state they are not liable for many types of service failures (risk_flags-3) and limit their total liability for damages to the fees paid in the preceding 12 months (risk_flags-5). Finally, using third-party services is at your own risk, and Kaleidos will not be liable for them (gotchas-1) and may not support issues arising from them (gotchas-2).
90% confidence
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Risk Flags
5 findings
Critical issues and red flags that could lead to significant harm.
high95% confidence
Company not liable for unauthorized account use, even if notified
Kaleidos states that even if you notify them of unauthorized account use, they are not liable for any losses, damages, liability, expenses, or attorneys' fees resulting from a third-party accessing or using your User account.
Why it matters: You bear all financial responsibility for losses, damages, liabilities, expenses, or attorneys' fees if a third party accesses or uses your account without authorization, even if you notified Kaleidos about it.
Please, note that even if you had advised Kaleidos of an unauthorized use of your User account, Kaleidos shall not be liable for any loss, damages, liability, expenses or attorneys’ fees arising out of or in connection with a third-party access or use of your User account.
TERMS OF ACCESS, paragraph 8 · Citation strength: strong
high95% confidence
Company not liable for loss of data, profits, or incidental damages
Kaleidos will not be liable for any loss of profits, loss of data, or any indirect, special, incidental, punitive, or consequential damages resulting from the use or inability to use their products and services, even if they were aware of the possibility of such damages.
Why it matters: You cannot claim compensation from Kaleidos for loss of profits, data, or various types of indirect damages, even if Kaleidos knew these problems could occur.
Unless otherwise required by applicable law, in no event will Kaleidos be liable to you or to any third party for any loss of profits, loss of data, or any indirect, special, incidental, punitive or consequential damages of any kind arising out of, or in connection with these Terms and Conditions or with your use (or inability to use) Kaleidos’ Products & Services, even if Kaleidos has been advised or is otherwise aware of the possibility of such damages.
WARRANTIES AND LIMITATION OF LIABILITY, paragraph 5 · Citation strength: strong
high90% confidence
Company has no liability for many types of service failures
Kaleidos disclaims liability for various issues including system vulnerabilities, viruses, lack of accessibility, unlawful third-party access, compatibility problems, and failures caused by third-party service providers.
Why it matters: You cannot hold Kaleidos responsible for damages or issues arising from system vulnerabilities, malware, service unavailability, unauthorized access, compatibility problems, or failures from their third-party providers.
Other than as expressly stated in these Terms and Conditions (or as provided by law), Kaleidos does not warrant and shall not be liable for: (i) the vulnerability of Kaleidos’ Products & Services and/or the security measures adopted therein; (ii) the existence and/or transmission of viruses or other similar harmful components (you are responsible for implementing procedures and checkpoints that are adequate to guarantee your particular requirements for anti-virus protection, as well as for maintaining a means external to Kaleidos for any reconstruction of any lost data that may be needed); (iii) the lack of accessibility, availability, usefulness or performance of Kaleidos’ Products &
WARRANTIES AND LIMITATION OF LIABILITY, paragraph 4 · Citation strength: strong
high90% confidence
User is responsible for damages caused by third-party services
The User is solely responsible for any damages caused to third parties due to their use or inability to use Kaleidos’ Products & Services. Kaleidos is exempt from liability, and the User must indemnify Kaleidos from any related claims.
Why it matters: You are fully liable for damages incurred by third parties due to your use of the service, and you must protect Kaleidos from any related legal claims.
You will be solely liable for any damages caused to third parties due to your use (or inability to use) Kaleidos’ Products & Services. Kaleidos shall be exempt from any liability in this regard, and you shall keep Kaleidos harmless from any claim arising in connection thereof.
WARRANTIES AND LIMITATION OF LIABILITY, paragraph 3 · Citation strength: strong
high90% confidence
Limited liability for damages up to fees paid for 12 months
Kaleidos's total liability to you or any third party for issues arising from the terms or use of services will not exceed the total amount of fees paid to Kaleidos in the 12 months prior to the first claim.
Why it matters: The maximum compensation you could receive from Kaleidos for any claims is limited to the fees you paid in the year before the claim, regardless of the actual damages incurred.
In no event will Kaleidos’ total aggregate liability to you or to any third party arising out of or in connection to this Terms and Conditions or to your use of (or inability to use) Kaleidos’ Products & Services exceed the total amount of fees you (or, where applicable, your Customer) actually paid to Kaleidos during the twelve (12) months immediately prior to the accrual of the first claim.
WARRANTIES AND LIMITATION OF LIABILITY, paragraph 6 · Citation strength: strong
Data Use
4 findings
How the company collects, uses, and shares your data.
medium95% confidence
Employer can access your account and data without notice
If you register a User account with an email address controlled by a third-party, such as your employer, that third-party will be considered an End User and can request access to your User account and all its content and data, with or without prior notice to you and without any liability to Kaleidos.
Why it matters: Your employer can access your account and all its content, including any personal content you have stored there, without warning and Kaleidos is not liable.
Please, note that if you register a User account with an email address controlled by a third-party (such as a corporate email that is controlled by your employer), you acknowledge that you will be considered as an End User of that third-party. Said third-party will be able to request access to your User account and all the content and data of your User account, with or without prior notice to you and without any liability to Kaleidos.
TERMS OF ACCESS, paragraph 5 · Citation strength: strong
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Company granted a broad license to user content for service provision and improvement
You grant Kaleidos and its authorized service providers a worldwide, non-exclusive, non-transferable license to host, copy, access, process, and transmit content you upload to provide services and improve Kaleidos’ Products & Services, including analyzing metadata related to your dashboard and generating statistics.
Why it matters: Kaleidos can use your uploaded content, including metadata, to run and improve their services, which could involve analyzing patterns in your usage data.
For the sake of clarity, we will only analyze metadata (such as the length of a task title, the number of Users assigned to a task, the size of the attachments, etc.), but we will not analyze the text and contents themselves (such as the name of the task title, the name of the Users assigned to a task, the content of an attachment, etc.).
4.3 User content, paragraph 1 · Citation strength: strong
medium95% confidence
Feedback can be used and exploited without compensation
If you provide any feedback, including ideas and suggestions, Kaleidos is free to use, disclose, reproduce, modify, sublicense, transfer, distribute, and exploit it in any manner without compensating you.
Why it matters: Any ideas or suggestions you provide to Kaleidos can be used by them without any obligation to compensate you.
If you provide any feedback (including any ideas and suggestion) to Kaleidos, you agree that Kaleidos will be free to use, disclose, reproduce, modify, sublicense, transfer, distribute, and exploit said feedback in any manner and without compensating you.
4.3 User content, paragraph 1 · Citation strength: strong
medium90% confidence
Use of Third-Party Services means data will be handled by third parties
If you use or grant access to a Third-Party Service, your data will be handled in accordance with that Third-Party's privacy policy and practices.
Why it matters: Your data may be collected, used, and shared according to the third-party's policies, which could differ from Kaleidos's own policies.
If you use or grant access to a Third-Party Service, your data will be handled in accordance with the Third-Party's privacy policy and practices, which you should review carefully before using those services.
How and when you can cancel, and what happens with renewals and refunds.
high95% confidence
Cancellation of free accounts can happen without notice or liability
Kaleidos may cancel a user's free trial or free subscription at any time, with or without prior notice, and without any liability to Kaleidos.
Why it matters: Your free account can be terminated instantly without warning, and Kaleidos will not be responsible for any resulting issues.
In addition to the above, if the User is using a free trial or free subscription to Kaleidos’ Products & Services, Kaleidos may cancel the User’s subscription at any time, with or without prior notice, and with no liability to Kaleidos.
6.1 Term and cancellation rules applicable to cloud Kaleidos’ Products & Services, paragraph 1 · Citation strength: strong
high95% confidence
Company can suspend or delete accounts for various reasons, without liability
Kaleidos has the right to suspend or delete your account, permanently or temporarily, for reasons such as maintenance, cessation of services, belief of terms violation or security risk, legal requirements, or use for purposes other than those specified.
Why it matters: Your account can be suspended or deleted for many reasons, including perceived violations, security risks, or if the service simply stops, and Kaleidos will not be liable for this measure.
We have the right, in our sole discretion, to permanently or temporary suspend your access to and use of Kaleidos’ Products & Services (including our right to delete your User account), under the following circumstances: (i) for scheduled or emergency maintenance to Kaleidos’ Products & Services, or any part thereof; (ii) in the event Kaleidos ceases to provide, for any reason, access or any of the services associated to Kaleidos’ Products & Services; (iii) if we reasonably believe that you are using Kaleidos’ Products & Services in violation of these Terms and Conditions or any applicable law; (iv) if we reasonably believe that your use of Kaleidos’ Products & Services poses a security
6.1 Term and cancellation rules applicable to cloud Kaleidos’ Products & Services, paragraph 1 · Citation strength: strong
high95% confidence
No access to account data after cancellation or deletion
If your User account is cancelled, blocked, or deleted by you or by Kaleidos, you may no longer have access to the information and data stored in or related to your User account.
Why it matters: Upon cancellation or deletion of your account, you might lose access to all your stored information and data.
If your User account is cancelled, blocked, or deleted by you or by us (under the circumstances stated in these Terms and Conditions), you may no longer have access to the information and data stored in or related to your User account.
6.1 Term and cancellation rules applicable to cloud Kaleidos’ Products & Services, paragraph 1 · Citation strength: strong
Gotchas
2 findings
Potentially overlooked clauses that may be to your detriment.
medium90% confidence
Use of Third-Party Services is at your own risk
Any use of Third-Party Services is at your own risk, and Kaleidos will not be liable for them.
Why it matters: You are fully responsible for any issues or damages arising from your use of third-party applications or services, and Kaleidos offers no protection.
Any use by you of the Third-Party Services is at your own risk and we will not be liable to you or anyone else for the Third-Party Services.
Third-party services may not work properly with Kaleidos’ Products & Services, and Kaleidos may not be able to support you for problems caused by those services.
Why it matters: You are on your own if third-party services don't function correctly with Kaleidos' services, as Kaleidos may not provide support for these issues.
Third-party Services may not work properly with Kaleidos’ Products & Services, and we may not be able to support you for problems caused by those services.
Users can cancel their subscription to Kaleidos’ Products & Services at any time by accessing their User account, and the cancellation will take place immediately.
Why it helps: This allows users to terminate their service readily and without delay when they choose to, offering flexibility and control over their subscription.
The User can cancel their subscription to Kaleidos’ Products & Services at any time accessing their User account. Cancellation will take place immediately.
6.1 Term and cancellation rules applicable to cloud Kaleidos’ Products & Services, paragraph 1 · Citation strength: strong
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