Provision record
Gumroad · Gumroad Terms of Service · View original document ↗

Retained funds as liquidated damages after misconduct review

High severity Explicit document language Common · 276 of 352 platforms
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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

Recent Activity

This document changed recently

High Aug 1, 2026

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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▸ View Original Clause Language DOCUMENT RECORD
"
If the review concludes that there is a reasonable basis to believe misconduct has occurred, Supplier agrees that Gumroad may retain funds in Supplier's Account as liquidated damages

Excerpt from Gumroad's Terms of Service

Provision details

Document information
Document
Gumroad Terms of Service
Entity
Gumroad
Document last updated
May 20, 2026
Tracking information
First tracked
May 20, 2026
Last verified
May 20, 2026
Record ID
CA-P-067024
Document ID
CA-D-00899
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
c356520388516842e2919afec5fa2cd0d2a51c5d6bafbdf2e9e720a587e88fe7
Analysis generated
May 20, 2026 14:18 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Gumroad
Document: Gumroad Terms of Service
Record ID: CA-P-067024
Captured: 2026-05-20 14:18:58 UTC
SHA-256: c356520388516842…
URL: https://conductatlas.com/platform/gumroad/gumroad-terms-of-service/provision/CA-P-067024/retained-funds-as-liquidated-damages-after-misconduct-review/
Accessed: Aug. 3, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does Gumroad's Retained funds as liquidated damages after misconduct review clause do?

The clause states: “If the review concludes that there is a reasonable basis to believe misconduct has occurred, Supplier agrees that Gumroad may retain funds in Supplier's Account as liquidated damages”

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 276 platforms. See the full comparison.

Is ConductAtlas affiliated with Gumroad?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by Gumroad.