Public.com · Public.com Terms of Service · View original document ↗

User Indemnification Obligation

Medium severity Medium confidence Explicitdocumentlanguage Common · 70 of 325 platforms
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Document Record

What it is

If someone sues Public because of something you did on the platform, you are responsible for covering Public's legal costs and any resulting damages.

This analysis describes what Public.com'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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

The indemnification clause establishes a cost-shifting mechanism whereby users assume financial and legal defense obligations for the company and its personnel in disputes stemming from user conduct or service use. This allocation of legal risk and expense is material to the contractual relationship between the parties.

Interpretive note: Enforceability of broad indemnification clauses against retail consumers varies by jurisdiction; courts in several states have found similar provisions unenforceable in consumer adhesion contracts.

Consumer impact (what this means for users)

Users who violate the terms or third-party rights while using Public.com, even unintentionally, could be required to pay Public's legal defense costs and any damages awarded against the company arising from that activity.

How other platforms handle this

Roblox Medium

You agree to indemnify, defend, and hold harmless Roblox and its officers, directors, employees, agents, licensors, and service providers from and against any claims, liabilities, damages, judgments, awards, losses, costs, expenses, or fees (including reasonable attorneys' fees) arising out of or re...

OpenAI Medium

You agree to indemnify, defend, and hold harmless OpenAI and its affiliates, officers, directors, employees, agents, and licensors from and against any claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to your use of the Servi...

Airbnb Medium

To the maximum extent permitted by applicable law, you agree to release, defend (at Airbnb's option), indemnify, and hold Airbnb (including Airbnb Payments, other affiliates, and their respective officers, directors, employees, and agents) harmless from and against any claims, liabilities, damages, ...

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▸ View Original Clause Language DOCUMENT RECORD
"
You agree to defend, indemnify and hold harmless Public and its subsidiaries, agents, licensors, managers, and other affiliated companies, and their employees, contractors, agents, officers and directors, from and against any and all claims, damages, obligations, losses, liabilities, costs or debt, and expenses (including but not limited to attorney's fees) arising from: (i) your use of and access to the Service; (ii) your violation of any term of these Terms; (iii) your violation of any third party right.

— Excerpt from Public.com's Public.com Terms of Service

ConductAtlas Analysis

Institutional analysis (Compliance & governance intelligence)

REGULATORY LANDSCAPE: Broad indemnification clauses in consumer financial services agreements may require evaluation under applicable state consumer protection law and the FTC Act's unfairness doctrine, particularly where the indemnification obligation is imposed on retail consumers without meaningful negotiation. California courts have scrutinized indemnification provisions in consumer adhesion contracts for unconscionability. GOVERNANCE EXPOSURE: Medium. While indemnification clauses are standard in platform terms, the combination of broad scope (covering attorney's fees and all related costs) with a retail investor user base creates moderate exposure for consumers who may not appreciate the potential financial implications of platform-related legal claims. The clause as stated does not appear to limit the indemnification obligation to intentional or willful conduct. JURISDICTION FLAGS: Certain states limit the enforceability of indemnification clauses in consumer contracts, particularly where the obligation is disproportionate to the nature of the consumer relationship or where the consumer had no meaningful ability to negotiate the term. The absence of a cap on indemnification liability is notable for a retail financial platform. CONTRACT AND VENDOR IMPLICATIONS: Institutional and API users who generate higher volumes of transactions or whose automated strategies could trigger third-party claims face elevated exposure under this clause. B2B contracts should explicitly address whether the indemnification obligation is modified for commercial accounts. COMPLIANCE CONSIDERATIONS: Legal teams should assess whether the indemnification clause, as applied to retail consumers, is enforceable under applicable state law and whether the absence of an indemnification cap creates disproportionate consumer liability exposure. The FTC's guidance on unfair terms in consumer contracts may be relevant where indemnification is triggered by conduct that was not clearly prohibited or where the consumer had no reasonable opportunity to understand the obligation.

Full compliance analysis

Regulatory citations, enforcement risk, and due diligence action items.

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Applicable agencies

  • FTC
    The FTC has authority to examine whether broad indemnification clauses in consumer financial services agreements constitute unfair or deceptive practices
    File a complaint →
  • State AG
    State Attorneys General have consumer protection authority over contract terms imposed on retail consumers, including indemnification clauses that may be unconscionable under state law
    File a complaint →

Applicable regulations

FTC Act Section 5
United States Federal

Provision details

Document information
Document
Public.com Terms of Service
Entity
Public.com
Document last updated
May 5, 2026
Tracking information
First tracked
May 10, 2026
Last verified
May 10, 2026
Record ID
CA-P-000504
Document ID
CA-D-00058
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
40ffbfa6a91d03da7d42cbdfe38895e1b6900c6bc2f5e1641e5eac51038a30b9
Analysis generated
May 10, 2026 22:14 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: Public.com
Document: Public.com Terms of Service
Record ID: CA-P-000504
Captured: 2026-05-10 22:14:03 UTC
SHA-256: 40ffbfa6a91d03da…
URL: https://conductatlas.com/platform/publiccom/publiccom-terms-of-service/user-indemnification-obligation/
Accessed: May 20, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

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Frequently Asked Questions

What does Public.com's User Indemnification Obligation clause do?

The indemnification clause establishes a cost-shifting mechanism whereby users assume financial and legal defense obligations for the company and its personnel in disputes stemming from user conduct or service use. This allocation of legal risk and expense is material to the contractual relationship between the parties.

How does this clause affect you?

Users who violate the terms or third-party rights while using Public.com, even unintentionally, could be required to pay Public's legal defense costs and any damages awarded against the company arising from that activity.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 70 platforms. See the full comparison.

Is ConductAtlas affiliated with Public.com?

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