Merchants must pay Shopify's legal costs and defend Shopify against any claims brought by third parties resulting from the merchant's actions or violations of the Terms — including claims arising from products the merchant sells.
Merchants are exposed to potentially significant financial liability: if a customer sues, a regulator takes action, or a third party makes a claim related to the merchant's Shopify store, the merchant must pay not just their own legal costs but also Shopify's attorneys' fees and any resulting damages.
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Compare across platforms →If a customer or regulator takes legal action related to products a merchant sells through Shopify, the merchant must not only defend their own position but also cover Shopify's legal fees and losses — which could be substantial if a claim escalates.
REGULATORY FRAMEWORK: Indemnification clauses in commercial SaaS agreements are generally enforceable under contract law in all major jurisdictions, but may be limited by statute in certain contexts. In the EU, broad indemnification obligations in B2SMB platform contracts may be subject to review under the P2B Regulation's fairness requirements. GDPR Article 82 establishes a specific liability regime for data protection breaches that may interact with this indemnification clause where merchant data practices lead to third-party GDPR claims.
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