This analysis describes what Gumroad's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
The updated terms authorize Gumroad to place holds on supplier earnings indefinitely based on suspected violations, elevated chargeback risk, misleading marketing, incomplete identity verification, or payment partner requirements—without specifying a maximum hold period or guaranteed release timeline. Held funds remain in account balances but do not accrue interest and are not applied to Gumroad's benefit. The company will notify suppliers where practicable, but may withhold notice if it would compromise investigations or risk controls. Suppliers retain the ability to continue selling even while funds are held, but cannot access those earnings until Gumroad determines the basis for the hold has been resolved to its reasonable satisfaction.
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Lyft reserves the right to withhold or deduct credits or benefits obtained through a promotion or program in the event that Lyft determines or believes that the redemption of the promotion or receipt of the credit or benefit was in error, fraudulent, illegal...
If, as a result of the investigation, Company believes that criminal activity has occurred, Company reserves the right to refer the matter to, and to cooperate with, any and all applicable legal authorities.
"Gumroad shall also have the right to withhold funds pending settlement or not yet paid to you...associated with activities or products that Gumroad considers in its sole discretion to be fraudulent or illegalExcerpt from Gumroad's Terms of Service
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The clause states: “Gumroad shall also have the right to withhold funds pending settlement or not yet paid to you...associated with activities or products that Gumroad considers in its sole discretion to be fraudulent or illegal”
ConductAtlas has identified this type of provision across 276 platforms. See the full comparison.
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