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The agreement states that all fees paid to PlanetScale are non-refundable and non-cancelable, authorizes PlanetScale to charge 1.5% monthly interest on overdue or underpaid amounts, and permits service suspension for non-payment while the customer's payment obligation continues during the suspension period.
This analysis describes what PlanetScale'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 that customers bear the full financial obligation for fees incurred regardless of service outcome, and that PlanetScale retains the right to accrue interest charges and suspend access simultaneously, with no fee relief during suspension periods. The authority to modify fees upon reasonable notice without specifying a minimum notice period or opt-out mechanism is an operationally significant condition for budget-sensitive deployments.
Under this clause, customers who dispute or delay payment may face both service suspension and accumulating interest charges at 1.5% per month, with no stated mechanism to pause billing during a dispute. The agreement states that fee modification is permitted upon reasonable notice, without specifying the notice period or whether advance consent is required.
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"All Fees are non-refundable, non-cancelable, and exclusive of applicable taxes. PlanetScale is entitled to charge Customer interest, at a rate equal to one and a half percent (1.5%) per month on any overdue or underpaid amounts. If Customer fails to pay Fees in accordance with this Section 4.1, PlanetScale may suspend provision of the Product until such payment is received by PlanetScale. Customer's payment obligation will remain in effect during any such suspension. PlanetScale may modify the Fees upon reasonable notice to Customer.Excerpt from PlanetScale's Terms of Service
(1) REGULATORY LANDSCAPE: The non-refundable fee and interest provisions may engage state consumer protection statutes, including California's Unfair Competition Law (UCL) and similar frameworks in other jurisdictions, particularly where customers are individual consumers rather than commercial entities. The FTC's unfair or deceptive acts or practices authority is relevant if fee modification notice practices are ambiguous or insufficiently disclosed. Interest at 1.5% per month (18% annualized) may interact with state usury statutes depending on jurisdiction and the nature of the contracting party, though commercial contracts are frequently exempt from consumer usury limits. (2) GOVERNANCE EXPOSURE: Medium. The combination of non-refundable fees, continued billing during suspension, and unilateral fee modification authority creates financial exposure for enterprise customers. The absence of a defined minimum notice period for fee modifications means customers may have limited lead time to adjust budget allocations or exercise termination rights before new fees take effect. (3) JURISDICTION FLAGS: California-based customers are subject to the governing law clause, which applies California law. Organizations in jurisdictions with consumer protection statutes that limit non-refundable fee clauses or require specific cancellation rights may have additional protections not reflected in the agreement text; however, this agreement appears directed at commercial rather than consumer customers. EU/EEA customers should note that some member state commercial codes impose mandatory payment terms and interest rate limits. (4) CONTRACT AND VENDOR IMPLICATIONS: Procurement teams should assess whether the unilateral fee modification clause is compatible with internal budget governance requirements. The absence of a defined notice period for fee changes is a potential negotiation point in enterprise agreements. The chargeback fee reimbursement obligation should be reviewed against payment processor agreements. Accounts payable teams should be aware that payment obligations continue during any suspension period. (5) COMPLIANCE CONSIDERATIONS: Legal teams should evaluate whether the 1.5% monthly interest rate is consistent with applicable commercial law in the customer's jurisdiction. Finance and procurement teams should confirm whether a defined fee modification notice threshold (e.g., 30 days) is negotiated into any enterprise order form. Organizations should establish internal processes for monitoring fee modification notices posted to the agreement URL.
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This provision establishes that customers bear the full financial obligation for fees incurred regardless of service outcome, and that PlanetScale retains the right to accrue interest charges and suspend access simultaneously, with no fee relief during suspension periods. The authority to modify fees upon reasonable notice without specifying a minimum notice period or opt-out mechanism is an operationally significant condition …
Under this clause, customers who dispute or delay payment may face both service suspension and accumulating interest charges at 1.5% per month, with no stated mechanism to pause billing during a dispute. The agreement states that fee modification is permitted upon reasonable notice, without specifying the notice period or whether advance consent is required.
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