If a third party sues Twilio because of something your business did while using Twilio's platform — including TCPA violations or content issues — you must pay Twilio's legal costs and any damages.
This analysis describes what Segment'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 indemnification obligation establishes the customer's financial and legal responsibility for defending Twilio against third-party claims originating from the customer's own conduct or content. This shifts certain litigation costs and liability exposure to the customer rather than Twilio bearing those expenses internally.
The updated terms establish a binding arbitration requirement for users domiciled or registered in Mexico, replacing prior dispute resolution procedures. Under the revised Section 10.5, Mexico-domiciled users must first engage in good faith negotiations with Segment for up to 30 days, and if unresolved, disputes proceed to binding arbitration administered by the Centro de Arbitraje de México (CAM) in Mexico City before a sole arbitrator, with both parties splitting arbitration costs. Additionally, the agreement now explicitly carves out Mexico's Federal Consumer Protection Law (Ley Federal de Protección al Consumidor), stating it does not apply to this commercial agreement. Mexico users also face a new obligation to comply with anti-money laundering and anti-corruption requirements under applicable Mexican law.
View change record →Segment's updated terms now apply Japan-specific dispute resolution, verification, and tax requirements to customers domiciled or registered in Japan. The agreement now states that arbitration proceedings for Japanese customers will take place in Mexico City, Japan (implied Tokyo venue under the new Japan section), conducted in English. Japanese customers may be required to submit government-issued ID documents and complete verification processes as required under applicable Japanese law, including the Act on Prevention of Transfer of Criminal Proceeds and the Telecommunications Business Act. All fees are payable in Japanese Yen, and taxes will include Japanese consumption tax. Intellectual property rights now incorporate Japanese Copyright Act provisions. You can review the specific verification requirements by contacting Segment or reviewing the applicable service section.
View change record →Businesses using Twilio for customer communications face full indemnification liability for third-party claims — including regulatory fines and class action settlements — that arise from their use of the platform, creating significant uncapped financial risk.
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"You will indemnify, defend, and hold harmless Twilio, its affiliates, and their respective directors, officers, employees, agents, successors, and assigns from and against any and all claims, damages, losses, costs, investigations, liabilities, judgments, fines, penalties, settlements, interest, and expenses (including attorneys' fees) that directly or indirectly arise from or are related to any claim, suit, action, demand, or proceeding made or brought against Twilio by a third party in connection with: (a) your use of the Services; (b) your User Content; (c) your violation of these Terms; (d) your violation of applicable laws or regulations; or (e) your negligence or willful misconduct.— Excerpt from Segment's Segment Terms of Service
REGULATORY FRAMEWORK: Indemnification clauses are enforceable under general contract law principles. TCPA (47 U.S.C. § 227) creates private rights of action with statutory damages of $500-$1,500 per violation, which can aggregate to massive class action exposure. FTC Act Section 5 and state UDAP statutes may also generate indemnifiable claims.
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The indemnification obligation establishes the customer's financial and legal responsibility for defending Twilio against third-party claims originating from the customer's own conduct or content. This shifts certain litigation costs and liability exposure to the customer rather than Twilio bearing those expenses internally.
Businesses using Twilio for customer communications face full indemnification liability for third-party claims — including regulatory fines and class action settlements — that arise from their use of the platform, creating significant uncapped financial risk.
ConductAtlas has identified this type of provision across 1 platforms. See the full comparison.
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