Software subscriptions: the 4 clauses to check

Work software and online services are paid per user and renew on their own. The terms also say what happens to your data and your files.

Renewal at list price
The first-year discount disappears at renewal, which happens automatically.
How it’s usually written
The subscription renews automatically at the list price in force on the renewal date.
What to do: Note the renewal date and the list price, not the discounted one.
Minimum number of users
You pay for a minimum number of seats even if you use fewer, and reducing them may only be possible at renewal.
How it’s usually written
The plan requires a minimum of 5 users; reductions take effect from the next renewal.
What to do: Buy the seats you really need: adding is easy, removing isn’t.
Your content and your data
The provider may get broad licences over your content, or use it to train its models.
How it’s usually written
You grant the provider a worldwide, royalty-free licence to use uploaded content to improve the services.
What to do: Look for the words “licence”, “improve the services”, “training”: they say what will be done with your files.
Limited liability and account closure
If the service loses your data, compensation may be capped at a few months’ fees; the account can be closed.
How it’s usually written
The provider’s liability is limited to the amount paid in the preceding 12 months.
What to do: Keep copies of important data outside the service and check how to export it.

Before you sign, ask yourself

Consumer protections apply when you buy as an individual; business purchases rely much more on the terms, so reading them matters even more.

General information, not legal advice. For an important contract, have a professional read it.