If Shopify gets sued or faces any legal claim because of something you did as a merchant — including violations of law or third-party rights — you must pay Shopify's legal costs and any damages.
Merchants could face unexpected, potentially substantial legal costs if a third party (such as a customer, competitor, or regulator) makes a claim against Shopify that relates to the merchant's store or conduct — creating significant financial risk beyond normal business liability.
How other platforms handle this
If the Nintendo Parties are subject to any actual or threatened claims, costs, damages, losses, or other liabilities (collectively, "Covered Losses") as a result of your use of any of the Services, or any data, information, or other item you make available through the Services including User Content...
You agree to indemnify, hold harmless and, at our option, defend us and our affiliates, and our and their officers, directors, employees, stockholders, agents and representatives, as well as Partner Bank (collectively, "Indemnified Persons"), from any and all third party claims, liability, losses, d...
If you are a parent or legal guardian of a minor in your country, by allowing your child to use the Service, you are subject to the terms of this Agreement and responsible for your child's activity on the Service.
This means merchants bear legal and financial responsibility not just for their own losses but for defending Shopify against any claims arising from the merchant's activities, including claims by their own customers, brand owners, or regulators.
(1) REGULATORY FRAMEWORK: Indemnification clauses in commercial agreements are governed primarily by state contract law; however, this provision also engages FTC Act Section 5 considerations where indemnification obligations are used to shift regulatory enforcement costs; EU P2B Regulation and Unfair Contract Terms Directive considerations where indemnification creates a significant imbalance of obligations; and IP indemnification obligations may engage 17 U.S.C. (copyright), 15 U.S.C. (Lanham Act trademark), and equivalent EU IP law where merchant content infringes third-party IP. (2)
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