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The agreement states that Modal may collect and use aggregate or permanently anonymized usage data for its own business purposes both during and after the agreement term, and that this right survives termination. The definition of Service Metrics requires that the data not identify an individual or Customer and that technical safeguards against reidentification be in place.
This analysis describes what Modal'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
This provision establishes a post-termination data retention and use right for Modal covering aggregate and anonymized usage data, which operates as an exception to the general data deletion obligations upon termination. The enforceability of the anonymization standard as a basis for excluding this data from privacy law obligations depends on the robustness of the anonymization and reidentification safeguards, which the agreement states are implemented but does not detail in the main terms.
Interpretive note: Whether Modal's anonymization standard satisfies the GDPR or CPRA threshold for exclusion from personal data obligations depends on the specific technical measures applied, which are not fully described in the agreement text.
Under this clause, Modal retains the right to collect and use aggregate and permanently anonymized usage data derived from Customer's use of the Service indefinitely, including after the agreement ends. The agreement states that technical safeguards and business processes to prohibit reidentification are in place, though the specific measures are not described in the main terms.
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"Notwithstanding anything to the contrary, Customer acknowledges and agrees that Modal may collect and use Service Metrics for its own business purposes during the term of this Agreement and thereafter. "Service Metrics" means data and information related to Customer's or its Users' use of the Services that is used by Modal in an aggregate and/or permanently anonymized manner such that it does not identify an individual or Customer, and for which Modal has implemented technical safeguards and business processes to prohibit reidentification of such data.Excerpt from Modal's Terms of Service
(1) REGULATORY LANDSCAPE: This provision engages GDPR's anonymization standard, which requires that data be irreversibly anonymized to fall outside the regulation's scope. GDPR guidance and court decisions have established a high bar for anonymization, and the 'permanently anonymized' language in the agreement may not satisfy that standard in all cases depending on the data and context. UK GDPR and US state privacy laws including CPRA apply similar standards. The FTC has jurisdiction over deceptive data practices if anonymization claims are not substantiated. (2) GOVERNANCE EXPOSURE: Medium. The post-termination retention right is contingent on the adequacy of Modal's anonymization and reidentification safeguards. If those safeguards fail or are later found insufficient under applicable law, the retained data could be re-categorized as personal data, triggering regulatory obligations. Customers in regulated industries should assess whether industry-specific rules impose additional constraints on vendor retention of derived usage data. (3) JURISDICTION FLAGS: EU and UK Customers should evaluate whether Modal's anonymization standard meets the GDPR/UK GDPR threshold. California Customers should assess whether CPRA's definition of de-identified data and its associated obligations align with the Service Metrics definition. The post-termination nature of this right means it persists beyond the DPA's operational scope. (4) CONTRACT AND VENDOR IMPLICATIONS: Vendor assessment teams should request details of the technical safeguards and business processes referenced in this provision, as the agreement commits to their existence but does not describe them in the main terms. The Schedule 2 TOMs provide some information about data minimization and de-identification practices but do not specifically address Service Metrics. (5) COMPLIANCE CONSIDERATIONS: Data protection officers should assess whether the Service Metrics definition and the anonymization standard applied by Modal satisfy the requirements of applicable privacy laws for the Customer's own compliance purposes. This may require requesting Modal's technical documentation or security materials referenced in the agreement.
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This provision establishes a post-termination data retention and use right for Modal covering aggregate and anonymized usage data, which operates as an exception to the general data deletion obligations upon termination. The enforceability of the anonymization standard as a basis for excluding this data from privacy law obligations depends on the robustness of the anonymization and reidentification safeguards, which the …
Under this clause, Modal retains the right to collect and use aggregate and permanently anonymized usage data derived from Customer's use of the Service indefinitely, including after the agreement ends. The agreement states that technical safeguards and business processes to prohibit reidentification are in place, though the specific measures are not described in the main terms.
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